Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS.
As of November 5, 2021, we and certain of our subsidiaries are named defendants in approximately 13 putative class action suits filed in the United States District Court for the Central District of California and one complaint for damages was filed against us and one subsidiary in the Superior Court of the State of California, County of Orange - Civil Division, which we removed to the United States District Court for the Central District of California. All of the actions generally allege that we caused a discharge of oil off the Southern California coast in early October 2021 and the plaintiffs seek unspecified monetary damages and certain plaintiffs seek various forms of injunctive relief. We understand that certain plaintiffs intend to file one or more amended consolidated complaints, and the matters may be consolidated into a single action. Regarding all 14 matters, we deny the allegations and intends to vigorously defend against them. As of November 5, 2021, there have been no responsive pleadings filed, discovery schedules ordered, or trial dates set in any of the 14 matters. We are also participating in a related claims process organized under the Oil Pollution Act of 1990, 33 U.S.C. S 2701 et seq. (“OPA 90”). Under OPA 90, a party alleged to be responsible for a discharge of oil is required to establish a claims process to pay for interim costs and damages as a result of the discharge. The OPA 90 claims process remains at a preliminary stage. For additional discussion of the legal proceedings associated with the Incident, see “Part I - Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Part II - Item 1A. Risk Factors — Risks Related to the Southern California Pipeline Incident.”
Future litigation may be necessary, among other things, to defend ourselves by determining the scope, enforceability, and validity of claims. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.
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