Alaska oil company to pay settlement for alleged spill

By Mark Payne | Jan 8, 2015


Aleut Enterprise LLC (AE) agreed to a settlement with Alaska Attorney General Michael Geraghty's office on Tuesday after it allegedly caused an oil spill on Adak Island, which led to environmental damage.

As part of the deal, AE will pay $500,000 in civil fines, in addition to $200,000 for enhanced compliance.

On Jan. 11, 2010, approximately 1,126 barrels of oil were allegedly released into the water at Adak Island from a tank at AE’s fuel facility. The oil was being transferred from a tanker. The receiving tank overfilled, which caused the oil to spill into a secondary container, which also overflowed. The then oil spilled into Helmet Creek, which flows into Sweeper Cove. Sweeper Cove is a boat harbor in the Port of Adak.

Michael Baker, manager of operations for AE at the time of the incident, previously pleaded guilty to violating the oil discharge and contingency plan. He will pay a $2,000 fine and do community service for an environmental company.

As part of Tuesday's settlement, the state dropped eight additional charges against Baker. 

AE also previously agreed to a Natural Resource Damage settlement, which settled all claims related to damage to state and federal natural resources. 

 

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