$16-million settlement reached in ’90 oil spill

Greg Risling

NEWPORT BEACH -- Nearly a decade after one of the worst oil spills

in Orange County history, a $16-million agreement was reached Tuesday

between the affected parties, including the city of Newport Beach, and

the owner of the tanker that ran aground.

A jury had awarded a verdict of $18.1 million in 1997 to the cities of

Huntington Beach and Newport Beach, Orange County and the state

Department of Fish and Game. But attorneys for the tanker’s owner,

American Trading Transportation Co., also known as Attransco, appealed

the verdict.

Negotiations have occurred throughout this year and led to the

announcement of the joint settlement.

“It’s nice to have this concluded because the appeal process could

have taken two to three years,” said Newport Beach Assistant City

Attorney Robin Clauson. “Now we will look at how best to spend the

money.”

The money will be forwarded to a trust account established last year

by the coalition of plaintiffs, who will divide the money for specific

projects. The money would be reserved for beach and recreational

improvements that would have to be approved by the coalition, which will

meet next month.

“We have some needs but we will be reviewing those considerations over

the next several months,” Clauson said.

The tanker, named the American Trader, ran aground Feb. 7, 1990, off

the coast of Huntington Beach when its own anchor ruptured the hull.

The tanker spilled 400,000 gallons of oil that contaminated beaches as

far south as Corona del Mar and killed more than 1,000 birds.

The jury’s verdict set a precedent in state environmental law when it

tallied the daily loss of recreational activities at the beach at $13.19.

Several co-defendants settled their respective disputes with the

municipalities in 1994. Yet Attransco continued its legal battle, even

though the company agreed to settle initially for $11 million. Under the

agreement, the jury’s decision can no longer be appealed.