Plains All American Responds to Charges Filed Related to 2015 Accidental Release

Houston (May 17, 2016)- Plains All American Pipeline, L.P. (NYSE: PAA) and one of its employees were indicted by a California state grand jury for alleged violations of California law  in connection with the May 19, 2015 accidental oil release near Santa Barbara. Plains noted that the indictment included a total of 46 counts, 10 of which relate to the release of crude oil or reporting of the release and 36 of which relate to wildlife alleged to have been taken as a result of the accidental release. Plains is deeply disappointed by the decision of the California Attorney General and Santa Barbara District Attorney to pursue criminal charges against Plains and one of its employees in connection with the 2015 accident. Plains believes that neither the company nor any of its employees engaged in any criminal behavior at any time in connection with this accident, and that criminal charges are unwarranted. We will vigorously defend ourselves against these charges and are confident we will demonstrate that the charges have no merit and represent an inappropriate attempt to criminalize an unfortunate accident.

Plains sincerely regrets the accidental Line 901 release and the resulting impact on the community, the environment and wildlife.  Since the release, we have worked tirelessly and relentlessly to do the right thing and do it as quickly and effectively as possible by cleaning up the beaches and other affected areas, compensating those who were impacted by the release and working with the various governmental and other organizations responding to the incident.

Since the Line 901 release, Plains has worked cooperatively with the U.S. Coast Guard, California Department of Fish & Wildlife, other members of the Unified Command, first responders and numerous local, state and federal stakeholders to make good on our commitment to do the right thing. In the process, Plains has:

  • Worked cooperatively and effectively with the Unified Command and others to successfully remove and remediate released oil from the affected water, soil and shoreline, restoring the impacted beaches and achieving Unified Command sign-off regarding the completion of active clean-up efforts by August 31, 2015, 105 days following the accident, and satisfaction of all shoreline and beach clean-up goals by January 22, 2016.
  • Worked diligently to achieve the re-opening of El Capitan State Beach on June 26, 2015, and Refugio State Beach on July 17, 2015.
  • Cooperated fully with the applicable trustees in the Natural Resource Damage Assessment process to assist in quantifying injuries to natural resources and associated public uses resulting from the accident and identifying possible restoration projects.
  • Cooperated fully with all governmental regulators and agencies investigating the accident, including the Pipeline and Hazardous Materials Safety Administration (PHMSA), U.S. Department of Justice, U.S. Environmental Protection Agency, California State Attorney General and Santa Barbara County District Attorney.
  • Directly or indirectly expended more than $150 million on the response effort, cleanup and related matters.

Plains remains committed to mitigating the impact of the Line 901 accident, taking appropriate and prudent steps to prevent future incidents, and working with the Unified Command, members of the community and other stakeholders to meet our commitments stemming from the accident.  We also intend to share key findings from this accident with other pipeline operators to improve practices industry-wide and help prevent similar incidents in the future.

Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids (“NGL”), natural gas and refined products. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 4.6 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas.

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