On December 3, 2021, the Department of Justice published a notice in the Federal Register of a settlement between Federal and State Trustees and Kirby Inland Marine, LP (“Kirby”) to resolve natural resource damages from a 2014 oil release. On March 22, 2014, a bulk carrier collided with an oil tank barge owned by Kirby in Galveston Bay near Texas City, Texas. The collision punctured a tank on the Kirby barge, resulting in the release of approximately 168,000 gallons of oil.  The collision and release closed the Houston Ship Channel and Intercoastal Coastal Waterway and interrupted the recreational use of the area. The released oil impacted Galveston Bay and the Gulf of Mexico, including the wildlife refuge on Matagorda Island.

Kirby has been a cooperating responsible party and paid for removal costs.  Additionally, Kirby paid $4.9 million in civil penalties under the Clean Water Act, as well as administrative penalties under the Texas Oil Spill Prevention and Response Act.

Shortly after the incident, Kirby and the Natural Resource Trustees began assessing natural resource damages caused by the release. The Trustees for this incident include the National Oceanic and Atmospheric Administration, the U.S. Department of the interior, the Texas General Land Office, the Texas Parks and Wildlife Department, and the Texas Commission on Environmental Quality. In September 2014, Kirby and the Trustees entered a memorandum of agreement to work jointly to assess the natural resource damages. The natural resource damages assessed include injuries to bottlenose dolphins, birds, shoreline habitats, and outdoor recreation opportunities.

In November 2021, the U.S. Department of Justice filed a signed consent decree in federal court, to settle natural resource damages with the Federal and State Trustees for approximately $15.5 million. See United States v. Kirby Inland Marine, LP, Civil Action No. 3:21-cv-00335 (S.D. Tex.). Before the consent decree becomes final, it must go through a 30-day public comment period and be entered by the court. The 30-day public comment period began on December 3, 2021, when notice of the settlement was published in the Federal Register, 86 Fed. Reg. 68686, and goes through January 3, 2022. A copy of the consent decree is available for review on the Department of Justice’s website: https://www.justice.gov/​enrd/​consent-decrees.

That it has taken nearly eight years to resolve the natural resource damages claim is fairly typical. For example, in 2021, the Department of Justice provided notice of seven consent decrees for Oil Pollution Act natural resource damages, and these consent decrees were signed anywhere from two to 15 years after the incident, and on average, nearly nine years after the incident.

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Photo of David L. Reisman David L. Reisman

David is an avid boater, fisherman and snorkeler and he loves to spend time on the water with his family.  Back on land, he enjoys golf, traveling, and watching the University of Miami Hurricanes football team.

Photo of Emily von Qualen Emily von Qualen

Emily is an environmental litigator practicing in the firm’s New Orleans office.

Prior to joining the firm, Emily practiced complex business law in the litigation group at Skadden, Arps, Slate, Meagher & Flom LLP in Houston.  Immediately after law school, she clerked in…

Emily is an environmental litigator practicing in the firm’s New Orleans office.

Prior to joining the firm, Emily practiced complex business law in the litigation group at Skadden, Arps, Slate, Meagher & Flom LLP in Houston.  Immediately after law school, she clerked in the Western District of Louisiana with Judge Minaldi.

Emily received her Juris Doctor from Tulane University Law School in 2016, graduating first in her class.  During law school, she also served as a judicial extern to the Honorable James L. Dennis of the United States Court of Appeals for the Fifth Circuit and the Honorable James Brady of the United States District Court, Middle District of Louisiana.

Photo of Steve Wiegand Steve Wiegand

Steve Wiegand’s practice focuses on complex regulatory issues impacting onshore and offshore energy and industrial operations.

In the offshore arena (including the Gulf of Mexico and the Pacific), he advises clients on a wide range of regulatory matters, including compliance with operational and…

Steve Wiegand’s practice focuses on complex regulatory issues impacting onshore and offshore energy and industrial operations.

In the offshore arena (including the Gulf of Mexico and the Pacific), he advises clients on a wide range of regulatory matters, including compliance with operational and safety requirements, appeals of Incidents of Non-Compliance and civil penalty assessments, incident response and associated agency investigations, lease suspensions, and National Pollutant Discharge Elimination System permit compliance.