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Energy giants hit with massive lawsuit after major oil spill devastates critical industry: 'This is a no-win situation for us'

"You just take a loss."

"You just take a loss."

Photo Credit: iStock

Over 2,300 people in the shrimp industry have hit Hilcorp Energy and WCC Energy Group with a massive lawsuit. This comes three years after the energy companies caused a major oil spill off the coast of Louisiana.

What's happening?

According to NOLA.com, the oil spill happened on the shrimping season's opening day in 2022. A Hilcorp oil tank fell into Terrebonne Bay and spilled about 14,000 gallons of oil into Lake Pelto.

WCC allegedly damaged the oil tank during a transfer. The lawsuit also blames Hilcorp, claiming that it never properly inspected the tank.

Louisiana state officials closed 33 square miles of oyster harvesting waters. Shrimp fishers stayed away from the area for fear of contamination and ultimately had an unsuccessful shrimping season.

Why is the oil spill concerning?

The plaintiffs in the lawsuit include shrimpers, boat owners, and seafood businesses. This oil spill has harmed people with many different livelihoods across the Gulf Coast. 

Without consistent, quality products to sell, everyone in the shrimp industry risks being unable to provide for themselves.

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"Fishermen are now confused on whether they should be taking a chance of going out to shrimp. Do you spend the money for supplies to get rejected at the dock for the sale of your shrimp?" Kimberly Chauvin, co-owner of the David Chauvin Shrimp Company, said to the Houma Courier

"And docks are worried that if we buy the shrimp, are we going to get paid by the processors or will they reject the shrimp? This is a no-win situation for us. Once we pay a fisherman, we don't get that money back. You just take a loss."

This isn't the first time this has happened, either. Hilcorp was involved in over a dozen oil spills in 2021 following Hurricane Ida, according to NOLA.com. The oil company also paid out $920,000 after it was accused of dredging oyster reefs without a permit.

When oil spills happen, they don't just hurt people. The National Oceanic and Atmospheric Administration says that oil spills can cause severe illnesses and death in wildlife. It can also take a long time for animal populations to bounce back after an oil spill, and many don't rebound.

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What's being done about the oil spill?

While the lawsuit can't reverse the oil spill, it aims to hold Hilcorp and WCC accountable for their actions.

The plaintiffs are accusing the companies of negligence and believe the companies have violated several environmental laws. They hope the lawsuit will help restore local ecosystems and "repair reputational damage done to Terrebonne Bay's and Louisiana's seafood industry," per NOLA.com.

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