Saturday, May 21, 2011

Capeco to pay $8.2M for PRico oil depot explosion

FORBES
Associated Press, 05.20.11, 06:51 PM EDT 

SAN JUAN, Puerto Rico -- Caribbean Petroleum Corp., former owner of a fuel depot that exploded nearly two years ago, has agreed to pay more than $8.2 million to help with cleanup costs, the U.S. Department of Justice said Friday.
The money will be used to reimburse the Environmental Protection Agency and the U.S. Coast Guard as well as cover penalties for federal violations, the agency said in a statement.
The blast destroyed 15 of the site's 40 oil storage tanks and sent tremors across the capital of San Juan. It also damaged 17 additional tanks, causing the release of 30 million gallons of petroleum, the agency said. Hundreds of people had to evacuate.Capeco filed for bankruptcy protection in August 2010 after its operations were nearly paralyzed by the October 2009 explosion at its fuel depot in Bayamon.
Puma Energy ( PUMX.PK - news people ) Caribe LLC bought Capeco's facility along with 147 service stations earlier this month through a court-ordered bankruptcy sale, according to the statement.