California oil company must pay US$65M over oil spills

A defunct company that spilled more than a million gallons of crude oil and wastewater in California must pay more than US$65 million in penalties and cleanup costs, federal prosecutors announced Monday.

A federal court entered a final judgment last week against HVI Cat Canyon Inc., formerly known as Greka Oil & Gas Inc., a U.S. Department of Justice statement said.

The judgment finalizes a Feb. 25 ruling by a judge of the U.S. District Court for the Central District of California. The judge found the company liable for 12 spills into federal waterways from 2005 through 2010 that dumped 26,584 barrels of crude oil and wastewater. The firm also committed 60 violations of federal regulations at 11 facilities amounting to nearly 87,000 days of violation, the ruling held.

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