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River waterfront with industrial facilities in the background

Company Agrees to $1.3 Million Payout Over 2011 Mobile River Oil Spill

James Bullard, July 30, 2015

A company that once operated a fuel storage facility in Mobile has reached a plea agreement requiring it to pay more than $1.3 million in criminal penalties and restitution stemming from a 2011 spill that sent thousands of gallons of fuel oil into the Mobile River.

According to federal court documents, the incident occurred in September 2011 when employees miscalculated available space in a storage tank during a routine transfer, causing a receiving tank to rupture. An estimated 6,000 gallons of fuel oil escaped into a containment area before ultimately reaching the Mobile River through a series of drainage canals.

The spill forced the U.S. Coast Guard to close nearly five miles of the lower Mobile River to ship and vessel traffic for 18 hours while crews worked to contain the damage. Wildlife officials confirmed that several animals died as a result of oil exposure, including two laughing gulls, a black-crowned night heron and at least one Alabama redbelly turtle, a species found primarily along the Gulf Coast.

Under the plea agreement reached in federal court, the company agreed to pay roughly $1 million in criminal penalties, split between a direct fine and a community service payment earmarked for the National Fish and Wildlife Foundation to fund waterway and wildlife restoration projects across the region. The company also agreed to pay restitution to the U.S. Coast Guard for its response costs, along with a separate payment to the Alabama Department of Conservation and Natural Resources’ wildlife division.

The company no longer operates in Mobile and is now based solely out of state. The case was investigated jointly by the U.S. Environmental Protection Agency’s criminal enforcement division and the U.S. Fish and Wildlife Service, and prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.

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Federal officials said the case underscores the consequences of failing to follow safety procedures at industrial facilities along the river, which supports both commercial shipping and sensitive wildlife habitat. Officials noted that operators who fail to follow required safety procedures and equipment protocols not only harm natural resources and communities, but also break the law.

Officials say the restoration funding from the settlement will support ongoing efforts to protect waterways in and around Mobile in the years ahead.

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Mobile environmental enforcementenvironmental penaltyEPAfederal courtGulf Coast environmentMobileMobile CountyMobile Riveroil spillSouth Alabama newsU.S. Coast Guardwildlife protection

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