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Feds Raid Oil & Gas Polluter’s Offices

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Feds Raid Oil & Gas Polluter’s Offices

An oil rig in the Gulf of Mexico.

An oil rig within the Gulf of Mexico.
Photo: Gerald Herbert (AP)

It typically looks as if polluters don’t get practically sufficient consideration and punishment from the federal government—however authorities cracked down on one oil and fuel producer that had been shirking its cleanup duties this week within the uncommon transfer of raiding its workplaces.

Agents from the U.S. Department of Interior and the Environmental Protection Agency searched the workplaces of QuarterNorth Energy LLC in Lafayette, Louisiana this week, Bloomberg reported Thursday, on the lookout for info on an oil spill at one of many firm’s wells QuarterNorth Energy is a brand new firm, but it surely was shaped out of the ruins of an older one: Fieldwood Energy LLC, which filed for bankruptcy in 2020.

According to an investigation filed by the DOI, in January of 2021, there was a stress incident at a fuel nicely owned by Fieldwood off the coast of southern Louisiana, which was not reported to authorities till August 2021 and was nonetheless not fastened a yr later, inflicting a bigger spill in January of 2022. “Fieldwood’s lack of mitigation, communication, and urgency to address the issues associated with [the well] played a major role in the events leading up to the incident,” the DOI famous in its report.

Shortly after submitting for chapter FieldWood signed a two-year promise in February of final yr with federal prosecutors to achieve a compromise: in trade for cooperating with authorities and paying a $2 million high-quality, the federal government agreed to not examine the corporate for its role in two oil spills in the Gulf in 2015 and 2018. The incident on the nicely off the coast of southern Louisiana could also be in violation of that settlement, sources advised Bloomberg, and that will have prompted the raid this week.

Fieldwood’s firm’s chapter reorganization plan was authorised final yr, and final September, Grist detailed how the chapter plan is inflicting a fancy and quiet authorized battle between the corporate over who’s going to finish up holding the examine for his or her outdated property. Part of the corporate’s plan entailed splitting its extra worthwhile property between its successor firm whereas transferring older wells to 2 different companies—in addition to straight-up abandoning some 1,170 wells, 280 pipelines, and 270 drilling platforms, successfully making an attempt to shirk any type of accountability for his or her cleanup. While federal and native rules require corporations to wash up outdated drilling websites, even by chapter, this cleanup can typically fall to the underside of the listing in monetary significance throughout a chapter listening to; traders scrambling for a remaining piece of the pie will typically stroll away with all the cash that’s left, leaving nothing for environmental damages.

The QuarterNorth/Fieldwood catastrophe is simply the tip of the iceberg in terms of the hazards posed by oil corporations going bankrupt and never doing due diligence on cleansing up their messes. Since 2015, greater than 260 oil companies within the U.S. have filed for chapter; lots of them are going by processes just like the one described above, as they try to work out methods to wiggle out of paying for his or her cleanup obligations.

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https://gizmodo.com/feds-raid-oil-polluter-quarternorth-energys-offices-1849546408