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Koch Industries, Inc. Oil Spills Settlement

Koch Industries Inc., will pay the largest civil fine ever imposed on a company under any federal environmental law to resolve claims related to more than 300 oil spills from its pipelines and oil facilities in six states, the Justice Department and the U.S. EPA announced. A settlement filed on January 13, 2000 requires Koch, the second-largest privately held company in the United States, to pay a $30 million civil penalty, improve its leak-prevention programs and spend $5 million on environmental projects.

The settlement filed in U.S. District Court in Houston resolves two lawsuits in Houston and Tulsa, Okla., which charge that Koch illegally discharged crude oil and petroleum products in Texas, Oklahoma, Kansas, Missouri, Louisiana and Alabama. The State of Texas joined the United States in suing Koch, and the $30 million penalty will be divided equally between Texas and the federal government.