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Australia launches inquiry into major oil spill

Shell Oil to pay California 19 mln dlrs over violations
Shell Oil Company will pay California more than 19 million dollars because of environmental violations at service stations throughout the state, officials said Friday. The agreement, filed earlier Friday in a California state court, requires Shell to pay 17.8 million dollars in civil penalties as well as 1.7 million dollars in costs to state and local agencies. The deal ends a three-year investigation into more than 1,000 Shell stations throughout the state focusing on operation and maintenance of underground storage tanks, as well as the handling of hazardous waste materials. California Attorney General Jerry Brown said in a news release that the investigation found hundreds of violations at the company's gasoline stations in California.

"Shell Oil Company disregarded the state's underground fuel storage and hazardous waste laws, committing hundreds of environmental violations at its gasoline stations across California," Brown said. Shell officials did not have any immediate response, but company officials in Houston said they would issue a statement later in the day. Shell, which is based in The Hague, the Netherlands, has about 102,000 employees in more than 100 countries worldwide. Under the terms of Friday's deal, Shell agreed to take immediate steps to improve spill and alarm monitoring, employee training, hazardous waste management and emergency response at its gasoline stations.

by Staff Writers
Sydney (AFP) Nov 5, 2009
Australia launched an inquiry on Thursday into a major oil spill off its coast which has been described as one of the country's worst environmental disasters.

Retired senior civil servant David Borthwick was appointed to probe the leak, which gushed from a damaged oil well in the Timor Sea for some 10 weeks and then burst into flames before finally being contained on Tuesday.

"I simply say that we aspire to learn from this incident and take any necessary steps to stop similar incidents occurring in the future," Resources Minister Martin Ferguson said.

The inquiry will have the power to call witnesses, take sworn evidence and force companies to hand over documents, and will make recommendations aimed at stopping future accidents.

The rig's Thai-based operator, PTTEP Australasia, has warned the site off northern Australia may need environmental monitoring for up to seven years.

Up to 28,000 barrels of oil poured into the sea after the West Atlas rig began leaking on August 21, prompting several attempts to cap it by boring a relief well and pumping in heavy mud.

Environmental groups have criticised the government's handling of the spill, saying it threatened bird and marine life off Western Australia's north coast.

Resource-rich Australia is enjoying strong energy exports, notably its fast-expanding liquefied natural gas sector fuelled by booming Asian demand.

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