Shipping firm to pay $10 million for oil spill and cover up

February 20th, 2010 - 4:47 am ICT by BNO News ( Leave a comment )

SAN FRANCISCO, CALIFORNIA (BNO NEWS) – Fleet Management Ltd. was ordered on Friday to pay $10 million after its role in causing the Cosco Busan oil spill and a subsequent cover-up, prosecutors said.

In November 2007, a ship struck the San Francisco Bay Bridge, which led to the oil discharge. The impact caused a tear that measured around 150 feet long by 12 feet high on the port side of the ship, puncturing two of the ship’s fuel tanks and damaging the fendering system on the Delta tower of the bridge.

At least 2,000 migratory birds died, including Brown Pelicans, Marbled Murrelets and Western Grebes. The Brown Pelican is a federally endangered species and the Marbled Murrelet is a federally threatened species and an endangered species under California law.

Fleet Management, a Hong Kong-based ship management firm, violated the Oil Pollution Act of 1990, concealed ship records, and created false and forged documents after the crash at the direction of shore-based supervisors with an intent to deceive the U.S. Coast Guard.

$2 million of the total $10 million monetary assessment will be devoted to fund marine environmental projects in the San Francisco Bay.

Fleet will also have to increase their training and voyage planning for ships engaged in trade in the United States. The new training and voyage planning requirements will be subject to auditing and the court’s supervision.

“Fleet failed to meet its obligation under international law to ensure the crew was adequately trained on navigation procedures and equipment and then tried to cover it up,” said a U.S. attorney. “Today’s sentencing should serve as a warning to everyone in the maritime industry – you will be held accountable for violations of federal and international laws.”

The pilot of the Cosco Busan, Captain John Cota, was sentenced to 10 months in prison, one year of supervised release and 200 hours of community service after pleading guilty on March 6, 2009.

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