Santa Barbara, CA: An environmental class action lawsuit has been filed against Plains All American Pipeline (NYSE:PAA) stemming from the Refugio State Beach oil spill in Santa Barbara. The class action complaint alleges the Texas-based company negligently operated the pipeline, Line 901, causing a rupture that discharged over 100,000 gallons of crude oil onto beaches and into the Pacific Ocean, damaging ecologically and economically significant natural resources. The complaint claims violations of state and federal laws.
"In Santa Barbara, those environmental impacts translate to profound economic impacts. In the short term, the oil from Plains All American' ruptured pipeline has closed fishing grounds and shellfish areas, and caused canceled reservations from tourists who otherwise would be spending their money on hotels, restaurants, kayaking or surf trips, and fishing charters,"the complaint states.
The complaint was filed on behalf of Stace Cheverez, a sea urchin diver and nearshore fisherman. Plains All American' oil spill has led to the closure of areas where Cheverez customarily fishes for commercially valuable nearshore species like Grass Rockfish.
Plains All American Pipeline is no stranger to oil spills. The company has accumulated 175 safety and maintenance infractions since 2006. The Pipeline and Hazardous Materials Safety Administration shows Plains' rate of incidents per mile of pipe is more than three times the national average. "In short, Defendant has an ugly tradition of operating pipelines that fail. The communities through which it transports oil suffer the consequences,"the complaint alleges.
The spill, which triggered California Governor Jerry Brown to declare a state of emergency, may have extreme effects on both the environment and economy. Two beaches have been closed and nearby hotels have been fielding calls from concerned visitors who planned on visiting Santa Barbara, one of Southern California' top tourist destinations, over Memorial Day weekend.
Plaintiffs are represented by Keller Rohrback LLP and Lieff Cabraser Heimann & Bernstein, LLP .
