Oil & Gas

San Francisco Oil Lawyer Keeping Our Community Informed About Stories That Matter

July 16, 2012 | Gregory J. Brod

In order to be prepared to serve our community in the wake of a San Francisco oil spill, The Brod Law Firm follows oil-related disasters across the nation. Just last week, federal investigators revealed the results of their inquiry into a 2010 incident in Michigan. For the Northern California region, this report is especially notable because it bears several similarities to the explosion that rocked San Bruno during that same year.

MSNBC is one of several news outlets carrying the Associated Press story about the most expensive onshore oil spill in our country’s history. On July 25, 2010, at approximately 6 P.M., oil began leaking from a 30-inch pipeline in southwestern Michigan. Alarms sounded repeatedly at the control center of Enbridge, Inc., the line’s Canadian operator, but staffers misinterpreted the warning. Overall, the ruptured pipeline dumped approximately 843,000 gallons of heavy crude into the waters of the Kalamazoo River and a tributary creek. About 320 people reported health symptoms that officials tied to oil exposure and the spilled crude fouled over 35 miles of waterways and wetlands. Cleanup costs have surpassed the $800 million marks, more than five times more than the second-costliest onshore spill in U.S. history.

According to the National Transportation Safety Board (“NTSB”), Enbridge failed to respond appropriately to the Michigan catastrophe and also neglected to adequately address structural problems that had been detected years prior. By 2005, five years before the spill, the company knew that the pipeline, located about 95 miles west of Detroit, was cracked and corroded. According to the report, Enbridge did not grasp the significance of the developing cracks and did not appropriately investigate other findings about pipe wall thickness. Enbridge did not perform excavations and visual inspections, actions that NTSB investigators believe could have prevented the rupture. Investigators believe that trapped moisture caused corrosion on the pipeline, leading to cracks that eventually linked together to cause the rupture.

Captain Blamed in 2007 Cosco Busan Oil Spill Seeking Renewed Mariner’s License

May 23, 2012 | Gregory J. Brod

One of our specialties at The Brod Law Firm is handling cases involving the oil industry. Whether it is a refinery accident in Richmond or an oil spill in San Francisco Bay, our firm is equipped to handle toxic tort lawsuits in Northern California, including litigation arising out of the oil industry.

The Oakland Tribune is reporting on a development involving Captain John Cota, the individual blamed for crashing the cargo ship Cosco Busan into the Bay Bridge on November 7, 2007. The collision tore a 211 foot rip into the ship, resulting in the worst oil spill in Bay waters since the rupture of a Martinez Shell refinery tank in 1988. The Cosco Busan incident caused 53,000 gallons of oil to spill into San Francisco Bay, oiling sixty-nine miles of shoreline, killing over 2,500 birds, and closing area fisheries. A civil lawsuit against Regal Stone Ltd., the ship’s owner, and its operator, Fleet Management Ltd, settled last year with the defendants agreeing to pay $44 million.

Investigators blamed the Costa Busan collision on John Cota’s diminished capacity due to the use of prescription medication. They also cited his failure to heed safety precautions and the decision to travel too fast despite heavy fog conditions as factors in the collision. Cota, age 64, pled guilty and served ten months in prison on water-pollution charges. Additionally, NTSB officials criticized the Coast Guard for failing to warn Cota of the impending collision and cited their failure to properly evaluate Cota’s medical status before renewing his license.

Northern California Disaster Law Firm Continues to Follow Claims Stemming from 2010 BP Oil Spill

May 17, 2012 | Gregory J. Brod

At The Brod Law Firm, we serve those impacted by environmental disasters in San Francisco and throughout Northern California. Our San Francisco class action attorney can handle cases in both federal and state courts in the state. We keep informed about important cases throughout the nation so that we can better serve our local communities when similar issues arise in our jurisdiction.

One of the biggest environmental disasters in recent years was the 2010 Deepwater Horizon Oil spill. On April 20, 2010, an explosion rocked at a nine year old offshore drilling unit that was being leased and operated by BP. Within a couple of days, an oil slick appeared near the rig, confirming fears that the explosion had caused a leak. Before the leak was stemmed, approximately 4.9 million barrels of oil leaked into the Gulf of Mexico waters. Industries and individuals in several states suffered significant economic losses as a result of the spill and the clean-up effort. Health concerns remain an issue for Gulf coast residents.

The oil spill resulted in multiple lawsuits, including individual and class claims against BP. The filing deadline for the existing Quick Payment program has recently been extended from May 7 to June 11. Pursuant to the program, individual claimants are eligible for a $5,000 payment and businesses can receive $25,000. By filing a claim and receiving a payment pursuant to the Quick Payment program, claimants waive the right to any future claims stemming from the 2010 disaster with the exception of those related to injury or death.

Proposed Gas Storage Field Raises Safety Concerns

May 9, 2012 | Gregory J. Brod

Safety is always foremost in the mind of our Sacramento natural gas accident attorney and our entire legal team. The Brod Law Firm is proud to support victims of utility accidents in Sacramento and to represent both individuals and class action groups in Sacramento toxic tort lawsuits. We also support efforts to ensure that utility companies operate in a safe manner that helps to prevent tragic accidents that can end or forever alter the lives of our fellow Californians.

Commissioner Florio of the California Public Utilities Commission (“PUC”) is working to block a local utility company from storing natural gas in a sandstone formation 3,800 feet below Avondale Glen Elder, a neighborhood in Sacramento. Florio is opposing the request by Sacramento National Gas Storage LLC to undertake the $70 million project and store 7.5 billion cubic feet of natural gas. The site is the former Florin Gas Field, a depleted natural gas reservoir, located underneath a 379 acre parcel of land containing more than 700 homes. If the PUC approves the request, the company would then need to seek a permit from the city for the project. Ultimately, the company would seek contracts with utility companies looking to store gas at the location. Company officials say they already have a commitment from the Sacramento Municipal Utility District that would use at least half of the field’s capacity.

In his statement opposing the project, Florio cited three significant impacts that, per the environmental impact report, could not meet the requirement of being mitigated to less than significant levels. The three areas are: 1) Potential hazard of a gas leak following gas field re-pressurization for storage; 2) Potential impact on the quality of groundwater due to operations and maintenance of the gas field; and 3) Temporary elevation of noise levels due to construction at the wellhead site. Florio notes that some of the potential for leaks is low but that the impact could be catastrophic and long-lasting.

Legal Battles Continue Over 2010 BP Spill

April 23, 2012 | Gregory J. Brod

The San Francisco toxic tort law firm at The Brod Law Firm continues to follow the legal battles that have grown out of the 2010 oil spill in the Gulf of Mexico. We follow the developments because we want to be prepared to help victims should an oil spill in Sacramento or other Northern California oil and gas accidents result in harm to our community.

As the Associated Press reported, last Wednesday, BP and a team of plaintiffs’ attorneys presented judge overseeing the BP cases with the formal terms of a proposed settlement for the pending class-action claims. The lawyers are looking for the judge to issue a preliminary approval that would impact BP and a plaintiff-side class composed of more than 100,000 businesses and individuals. There is no indication of how long it will take the judge to reach a ruling. Judge Barbier is expected to hold a formal fairness hearing to evaluate the settlement prior to issuing a final approval.

The proposed settlement would have BP paying an estimated $7.8 billion to resolve claims from private parties. Settlement papers put no cap on the total damages that BP may have to pay. If approved, it would be one of the largest class-action settlements in history. The parties believe the settlement is reasonable, fair, and adequate and that it builds a comprehensive system for awarding compensation to class members.

California Class Action Firm Following Developments Stemming from 2011 Oil Spill in Brazil

April 16, 2012 | Gregory J. Brod

The San Francisco class action attorney at The Brod Law Firm has been closely following developments stemming from an oil leak that occurred off the coast of Brazil last fall. Last month, The San Francisco Chronicle reported on developments stemming from the accident. The continuing story serves as a reminder of the importance of legal accountability following an oil-related accident. This story is particularly relevant to our coastal communities since a pipeline accident in California could impact dozens, hundreds, or even thousands of local residents and businesses.

In November 2011, a drilling accident led to an oil spill at Chevron’s Frade field. The Frade site is a deep water field in the Atlantic Ocean off the coast of Rio de Janeiro. It is estimated that three thousand barrels of crude oil flowed into the water as a result of the Frade incident. According to allegations, the companies involved in the Frade project used faulty equipment, applied excessive drilling pressure, and failed to fulfill requirements aimed at preventing oil spills.

Brazilian authorities have filed lawsuits against Chevron as well as Transocean, the company that operated the Frade drilling rig, and Petroleo Brasilero SA (“Petrobas”), Brazil’s state-controlled oil producer. Individual company executives have also been named in the litigation with prosecutors seeking prison terms of up to thirty-one years on charges they obstructed the government’s investigation into the accident. Prosecutors are seeking $5.5 million each from Chevron and Transocean and additional damages of approximately $549,100 from the individual executives. Petrobas may be responsible for thirty percent of damages charged to Chevron. The Brazilian government suggests these civil damage figures reflect the environmental damage stemming from the Frade spill.

Legal Battles in the Wake of Chevron Oil Spill in Brazil

April 8, 2012 | Gregory J. Brod

Legal Battles in the Wake of Chevron Oil Spill in Brazil Our San Francisco oil accident lawyer has been following the legal battles resulting from an oil spill. The spill occurred in November 2011 in an area offshore of Brail known as Frade Field. Chevron had a $3.6 billion project running at the time the spill occurred and approximately three thousand barrels of crude oil escaped into the Atlantic Ocean. Notably, the project had been proceeding under strict scrutiny in the wake of the 2010 Macondo spill that occurred in the Gulf of Mexico.

Criminal charges have been formally filed against Chevron and Transocean executives relating to the oil pipeline leaks. Investigations suggest that the companies used excessive pressure while drilling in the Frade field area. Prosecutors also charge that Chevron used faulty equipment and failed to meet industry requirements that aim to prevent and counter spills. Individual executives, including George Buck who is the head of Chevron’s Brazil operations, have been charged with obstructing the post-spill investigations. Those charges can carry prison sentences of up to thirty-one years.

Overall Brazilian authorities suggest that Chevron acted carelessly when it carried out operations at the Frade site. Prosecutors in Brazil are asking Chevron and TrasnOcean to pay $5.5 million and are seeking penalty payments of around $549,100 from individual executives. Chevron has denied all charges involving the company and its representatives. The judge in the case has ordered that certain executives may not leave Brazil without specific permission from the court.

Further Developments in the San Bruno Explosion Investigation

March 28, 2012 | Gregory J. Brod

Last week, our San Francisco pipeline accident law firm updated readers on safety concerns stemming from the 2010 San Bruno pipeline explosion. We wanted to follow-up and update our readers on developments being reported in this week’s San Francisco Chronicle.

On September 9, 2010, a pipeline explosion occurred near Skyline Boulevard and San Bruno Avenue in San Bruno’s Crestmoor neighborhood. The explosion and resulting fire left eight people dead, completely destroying thirty-eight homes and damages many more properties. Pacific Gas and Electric (“PG&E”), the company responsible for operating the pipeline, dismissed allegations that the pipeline was being operated at an elevated, dangerous, and illegal level of pressure. The current Chronicle investigation revealed that at least three segments in the San Bruno natural gas pipeline were being operated at an illegally high pressure level.

Federal law gives companies the option to maintain records that justify higher pressure levels but the law requires that companies that do not possess specific information must operate on the assumption that the pipelines are the lowest grade and limit pressure accordingly. PG&E failed to provide the needed information and exceeded the allowable pressure limit on the San Bruno pipeline and thirty other lines in California. Reports suggest that the pipeline pressure may have been twenty percent about the legal limit. Several expert consultants have concluded that the disaster might have been averted had PG&E maintained the legally required pressure level.

Safety in the Wake of the 2010 San Bruno Pipeline Explosion

March 21, 2012 | Gregory J. Brod

As your San Francisco pipeline accident law firm, we are continuing to follow the response of area companies in the wake of the deadly San Bruno pipeline explosion that took place in September of 2010.

A massive explosion occurred in San Bruno’s Crestmoor neighborhood at 6:11 P.M. on September 9, 2010. The explosion, which occurred near Skyline Boulevard and San Bruno Avenue, and resulting fire led to eight deaths and destroyed 38 homes while damaging many others. According to fire officials, it was between sixty and ninety minutes after the explosion before the gas in the area was shut off. Firefighters were not able to extinguish the resulting blaze until after eleven the following morning. PG&E owned the pipeline, a thirty inch steel transmission line, that was involved in the San Bruno disaster. The company reduced operating pressures following the incident by twenty percent in the wake of concerns the pipelines may have been installed improperly. In the aftermath of the incident, the California Public Utilities commission required PG&E re-evaluate the method it uses to determine peak operating pressure throughout 1,800 miles of pipelines. The company failed to meet an initial March 2011 compliance deadline but it unveiled a plan in August 2011 to modern the system and enhance safety. During subsequent strength testing, on November 6, 2011 another explosion occurred in the Woodside area. Luckily no deaths were reported.

This week, executives from Pacific Gas and Electric Company (“PG&E”) defended their plan to have customers finance the area safety program. The current estimate places the price tag at $2.2 billion but PG&E authorities have suggested the price tag could exceed $11 billion when future work is included. The price includes pipeline testing and replacement as well as the installation of a number of automated shutoff valves in the natural gas pipeline system. A judge is currently considering the company’s request to pass eighty-four percent of the costs on to customers. PG&E has defended its plan to pass on the costs because the company suggests the financial outlay is due to regulatory requirements and is not a direct result of the 2010 incident. However, it is notable that investigations after the accident found PG&E lacked strength records for approximately one-third of the company’s urban natural gas pipelines. Government investigations also concluded that the presence of automatic shut-off valves could have limited the damages from the explosion.

California Residents Must Protect Legal Rights Following Refinery Injuries

March 7, 2012 | Gregory J. Brod

One business that is booming, both in California and throughout the country, is the oil and gas industry. New drilling and refining techniques have been mastered in recent years which make it possible for the first time to reach certain energy sources that were previously unavailable. These developments may be good news for the local economy, but our California refinery injury lawyer understands that coupled with the benefits is a need to ensure the safety of these sites. There are far too many examples in the past of explosions and similar preventable accidents related to the industry which has severely hurt and killed local residents.

The need to maintain a focus on safety is made more prevalent by news of shake-ups in the local industry. According to Reuters, BP is planning to sell two of its five U.S. refineries, including one in California. The California refinery is located in Carson and handled 253,000 barrels of oil per day. The move comes just as BP ends a three-year probation period stemming from a deadly oil refinery explosion in 2005 that killed fifteen people and injured many others.

Our area is no stranger to the dangers of oil refinery plants. Many nearby residents, for example, may have stories highlighting the dangers of the nearby Chevron Refinery in Richmond. In 1999, a large explosion rocked the refinery, sending a mushroom cloud over the plant and forcing area residents to remain inside to avoid possible contamination. Several emergency responders were also injured in that blast. The seriousness of the explosion was verified by the fact that an amazing 1,200 residents from the East Bay area were forced to go to the emergency room over potential ill effects of being exposed to dangerous fumes from the plant.