A subsidiary of a major energy company will pay a six-figure penalty for spilling more than 40,000 gallons of gasoline from a pipeline in Walnut Creek, California, according to a settlement with the U.S. Environmental Protection Agency.

SFPP, L.P., a subsidiary of Kinder Morgan, Inc., agreed to pay a $213,560 penalty to resolve claims of Clean Water Act violations following the 2021 spill. The gasoline discharge contaminated local soil and water, posing a significant threat to the environment.

“Pipeline operators must be held accountable when they discharge gasoline into our environment,” said Amy Miller, EPA Pacific Southwest Region Enforcement and Compliance Assurance Director. 

“This enforcement action sends a clear message: companies must properly operate and maintain their pipelines to prevent spills.”

EPA claimed SFPP discharged gasoline in quantities that could be harmful to the environment, breaching the federal law requiring companies that transport petroleum to properly operate and maintain their pipelines to prevent spills. 

If a spill does occur, the law mandates that companies contain it immediately to prevent environmental harm. 

Meanwhile, SFPP is conducting ongoing cleanup work to address the environmental impacts of the oil spill, a process coordinated with the Regional Water Quality Control Board. 

SFPP operates pipelines and terminals that transport refined petroleum products, natural gas, and other energy products across North America. 

The EPA emphasised that it takes its responsibility to protect communities and waterways from petroleum discharges seriously.

The last settlement follows a similar incident in March 2023, when a group of international shipping companies, as well as their subsidiaries, agreed to pay Amplify Energy Corp. $96.5 million to settle the last lawsuit over a massive oil spill off the Southern California coast in October 2021.