Agencies Sue Cleanup Fund Over Oil Spill Damage

Orange County, Huntington Beach, Newport Beach and several government agencies filed a lawsuit in federal court Thursday against a federal cleanup fund for damage caused by the American Trader oil tanker spill in 1990.

The defendant is the Trans-Alaska Pipeline Liability Fund, which is administered by operators of the pipeline. The fund is liable for up to $100 million in damage from any spills from ships carrying oil from the pipeline to U.S. ports.

The suit seeks damages for spill cleanup, loss of public land use and tax revenue, and destruction of property, beaches, wildlife and coastal resources.

Huntington Beach City Atty. Gail C. Hutton said the fund’s administrators have refused to pay for losses stemming from the 400,000-gallon oil spill on Feb. 7, 1990.

“They have contended that the fund is good only for Alaska oil being shipped to a U.S. port,” Hutton said.

About 23.8 million gallons of Alaskan crude oil was loaded on the tanker Keystone Canyon and transported to Long Beach. The Keystone Canyon transferred the oil to the American Trader, which then headed toward the Golden West Refining Co. terminal off Huntington Beach.

“We have argued that we don’t think a transferring of oil from ship to ship constitutes arriving at a U.S. port, and we believe we’re right,” Hutton said.