FOR IMMEDIATE RELEASE                                         ENR
FRIDAY, JANUARY 17, 1997                           (202) 514-2008
                                               TDD (202) 514-1888


     ARCO PIPE LINE COMPANY TO SPEND MORE THAN $9 MILLION FOR
ENVIRONMENTAL DAMAGE CAUSED BY TWO SOUTHERN CALIFORNIA OIL SPILLS


     WASHINGTON, D.C. -- ARCO Pipe Line Company today agreed to
spend more than $9 million in damages and to restore natural
resources damaged from oil pipe line ruptures that spewed
hundreds of thousands of gallons of crude oil into Southern
California waterways, the United States and the state of
California announced.  Most of the ruptures occurred as a result
of a January 17, 1994 earthquake.

     The settlement was filed today in U.S. District Court in Los
Angeles, by the U.S. Department of Justice -- on behalf of the
Interior Department -- and the state of California. 

     Under the agreement, ARCO will spend $7.35 million to
restore natural resources damaged in the spill, pay $525,000 in
state and federal civil penalties, pay $277,000 to cover state
and federal spill response costs, and spend $1 million to fund
additional environmental projects.  Since ARCO performed much of
the cleanup work shortly after the spills occurred, the remaining
work primarily includes natural resource restoration -- ensuring
the return of plants, animals and fish affected by the spills.

     "I appreciate ARCO's cooperation in the initial cleanup
efforts and for taking responsibility for the additional cost of
restoring the natural resources damaged," said Lois Schiffer,
Assistant Attorney General in charge of the Justice Department's
Environment and Natural Resources Division.  "This settlement
reflects our policy that those responsible for damaging the
environment pay to clean it up -- not the American taxpayers."

     "Environmental contamination is one of the most insidious
threats to wildlife in this country," said Acting U.S. Fish and
Wildlife Service Director John Rogers.  "In many cases, such as
the Santa Clara spill, we simply wouldn't have the means to
restore resources harmed by pollution without the Natural
Resource Damage Assessment and Restoration Program."

     "I am very pleased with these settlements which will allow
for full recovery of the injuries in each spill and restoration
of wildlife habitat in the Santa Clara River system," said Pete
Bontadelli, Administrator of California's Office of Oil Spill
Prevention and Response.  "Our office is committed to ensuring
the environment is made whole.  These settlements are a success
because all the parties focused on a common goal, namely
restoration of the environment."

     On January 17, 1994, a magnitude 6.8 earthquake struck
Southern California, rupturing -- in at least eight different
places -- an ARCO oil pipeline running through Los Angeles
County.  The largest rupture spilled approximately 190,000
gallons of oil near Santa Clarita, with a portion of the oil
flowing into a storm drain and ending up in the Santa Clara
River, where it flowed about 16 miles downstream before a dam was
erected that halted the flow.  The oil damaged fish, wildlife and
river bank vegetation.  In addition, the oil spill killed several
federally-endangered fish living in the river and damaged habitat
critical to the survival of the species.  In total, the spill
affected approximately 100 acres of vegetation and 150 acres of
river bed sediments.

     A second spill occurred in another part of the pipeline in
April 1993, releasing 260,000 gallons of crude oil into Kern
County's Grapevine Creek, located just outside Los Angeles.

     Under the Oil Pollution Act, ARCO Pipe Line, as the owner of
a facility that discharged oil into a navigable water of the
United States, is responsible for all cleanup costs and natural
resource damage restoration costs. 
 
     The U.S. Department of Interior carries out numerous Natural
Resource Damage Assessment and Restoration activities because of
its responsibilities for managing more than 400 million acres of
public lands and the resources they support.  The Interior
Department's U.S. Fish and Wildlife Service is responsible for
conserving migratory birds, endangered species, inland fisheries,
and certain marine mammals, many of which are often severely
affected by chemical and oil spills.

     ARCO Pipe Line Company is a subsidiary of the Los Angeles-
based Atlantic Richfield Company.
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