ConocoPhillips to Pay $2.2 Million to Federal Government in Addition to $540,000 Fine Assessed by W

Published Oct 19, 2006 12:01 AM by The Maritime Executive

ConocoPhillips, the owner of the crude oil tanker “Polar Texas,” will pay the federal government $2.2 million to cover clean-up costs, an $80,000 penalty fine and a $540,000 fine to the state of Washington’s Department of Ecology. The vessel, long since taken out of service by the oil major, is alleged to have spilled about 24 barrels of crude oil into Puget Sound's Dalco Passage in October of 2004.

ConocoPhillips, meanwhile, has not admitted responsibility for the spill and the federal government has declined to pursue criminal charges against the firm. But the total $2.8 million price tag assessed against ConocoPhillips may not end the oil major’s financial liability in the matter. On going negotiations related to possible long-term damage caused by spill might cost the oil-major hundreds of thousands of dollars more.

Ecology Deputy Director Polly Zehm said in a written statement, “The mystery of a large spill with a mute and unknown responsible party drew intense attention and scrutiny.” Zehm added, “We welcome this long-awaited step from ConocoPhillips, and we fully expect Polar Tankers to do what's required of all ships and fleets on Washington's waters. Every shipping company is required to employ the care and attention needed to prevent spills. If a spill occurs, every company is required to detect it, immediately report it, and clean it up.” A Seattle Coast Guard spokesperson added “We hope this does send a message to ConocoPhillips and other portions of the maritime industry that this behavior will not be tolerated."

The alleged spill from the “POLAR TEXAS” occurred, according to state and federal investigators, when the tanker took on additional ballast after departing the port of Tacoma. The vessel, previously having discharged its cargo of crude oil, was the only tanker known to have transited the area of the spill during that time frame. Tests of spill samples conducted by the government showed that the oil was crude oil, similar to that which was carried by the vessel.