$2.3 million federal settlement in Puget Sound oil spill

ConocoPhillips will pay more than $2.3 million in federal fines and cleanup costs for the Oct. 2004 oil spill that soiled 21 miles of beach between Tacoma and Vashon Island, the U.S. Coast Guard announced today.

The federal settlement is on top of a $540,000 state fine announced last week for the spill, which investigators have linked to the oil tanker Polar Texas. The ship, which has since been demolished, was owned by a ConocoPhillips subsidiary, Polar Tankers.

The oil giant has yet to publicly accept blame for the spill, though state and federal investigations found the spilled oil was a chemical match to crude oil found in the Polar Texas after the incident.

The spill of more than 1,000 gallons of crude oil in Dalco Passage is thought to have happened in the early evening of Oct. 13. But it went unreported until a tugboat operator noticed an oil slick around 1 a.m. Oct. 14 and alerted authorities.

The federal settlement announced today includes fines of roughly $80,000, which is close to the maximum allowed under the federal Clean Water Act, according to the Coast Guard press release. It also covers $2.23 million, the total cost of the cleanup.

"Today's settlement with ConocoPhillips sends a strong signal to the tank vessel industry that those who spill oil and pollute the pristine waters of Puget Sound will be held fully financially accountable," said Capt. Steve Metruck, Coast Guard Captain of the Port for Puget Sound.

Some, however, have questioned whether the much larger state fine would really have an impact on an oil company with second-quarter profits over $5 billion.

Federal prosecutors have decided not to pursue criminal charges in the case.

Warren Cornwall: 206-464-2311 or wcornwall@seattletimes.com