Ashland OKs Spill Settlement

Ashland Oil Inc. has agreed to pay the commonwealth of Pennsylvania $4 million to cover civil penalties and damage to natural resources caused by a January, 1988, oil spill, it was reported Sunday.

The oil spill sent more than 700,000 gallons of diesel fuel into the Monongahela River after a storage tank split, fouling water in Pennsylvania, Ohio and West Virginia.

The $4-million settlement is Ashland’s last major hurdle in resolving litigation and penalties stemming from the oil spill, the Pittsburgh Press said.

The money will cover alleged violations of state environmental laws and damages to drinking water, fish, waterfowl and other resources, the paper said.

The settlement raises to about $27.25 million the amount Ashland has spent or has promised to spend on damage and expense claims by individuals, businesses and government agencies as well as civil penalties, a criminal fine and cleanup costs, the paper said.

The total figure breaks down to about $14 million for damages, expenses and civil penalties, including the Pennsylvania agreement; $11 million for cleanup costs, and $2.25 million for a criminal fine, it said.

The company last week agreed to pay up to $16 million more under the terms of a class-action settlement filed in U.S. District Court in Pittsburgh.

An Ashland spokesman said that insurance would cover all but a $2.5-million deductible.