5th Circ. Vacates $6M Oil Spill Fine Against Citgo

Law360, Los Angeles (July 17, 2013, 9:41 PM EDT) -- The Fifth Circuit on Wednesday vacated a $6 million civil penalty against Citgo Petroleum Corp. over a June 2006 oil spill, finding that the district court erred in failing to provide a reasonable approximation of economic benefit as required under the Clean Water Act.

The decision comes a year after Citgo urged the Fifth Circuit to dismiss the federal government’s quest for a fine higher than the $6 million penalty a Louisiana federal judge issued in response to the spill, saying the court lacked subject matter...
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