Colonial Pipeline Co will pay the state of Alabama $3.3 million in damages and penalties related to an explosion and spill on its 5,500-mile gasoline line in 2016.
The state's attorney general said the settlement is to first address environmental damage to land and water that was caused by the combined 11,800-barrel spill that happened in rural Shelby County in late 2016.
In September of 2016, nearly 7,400 barrels leaked below ground and was discovered by a mining inspector. The leak was caused by pipe fatigue due to improper soil compaction.
In October, a pipeline explosion killed one worker and injured several others after the pipeline exploded during maintenance on the line when it was accidentally struck by excavating equipment. About 4,400 barrels spilled as a result of the explosion.
The Colonial Pipeline transports more than 3 million barrels per day of gasoline, diesel, and jet fuel from the Gulf Coast to New York.