Con Edison will pay $636G in settlement from East River oil spill

Oct3 Con Ed and Stuy Town

Con Ed’s East River substation south of Stuyvesant Town (Photo by Sabina Mollot)

By Sabina Mollot

As a result of a transformer malfunction at a Con Ed substation that caused 30,000 gallons of insulating oil to leak into the East River last May, the utility has entered into a settlement with the state, and will be paying $636,015 in damages and penalties.

As part of the settlement with the Department of Environmental Conservation for violating of New York State Environmental Conservation Law, Con Ed will also be required to continue the cleanup effort. The company will also be expected to assess the petroleum containment compliance at its 13 waterfront substations located throughout the boroughs.

The May 7, 2017 incident happened at the utility company’s Farragut Substation in Brooklyn, with the DEC and the U.S. Coast Guard quickly descending on the scene in Manhattan and Brooklyn to try to minimize the contamination of the river. While the substance, dielectric fluid is similar to mineral oil, as opposed to petroleum, it was still foreign to the East River. Following the leak, booms were placed in the water and absorbent pads were placed along the shorelines where much of the fluid had seeped.

The settlement payout will go towards funding for local environmental and restoration efforts. Out of the $636,015, $100,100 will go to the Brooklyn Bridge Park Conservancy for its water-based environmental education and kayaking programs, and $71,000 in natural resource damages to New York City Audubon for its Governors Island common terns nesting project. The remaining $464,915 will go to the New York State Environmental Protection and Spill Compensation Fund (Oil Spill Fund), New York State Conservation Fund, and the State General Fund.

“At Governor Cuomo’s direction, New York continues to prioritize improving and protecting the State’s waters,” said DEC Commissioner Basil Seggos. “The funding that came out of DEC’s enforcement action and penalty against Con Edison highlights the positive investments that can be made after an unfortunate event. Settlement investments through DEC’s Environmental Benefit Projects Policy will improve and restore the environment and natural resource damages funding serves to make the public whole.”

In response to the settlement, which the DEC announced on Wednesday, Allan Drury, a spokesperson for Con Ed said, “We are pleased to have resolved issues stemming from this incident and to support valuable environmental programs.”

Drury added that there was “no long-term impact” to the East River as a result of the spill. “The cleanup process mentioned in DEC’s announcement relates only to what is left of the spill on Con Ed’s substation property, not in the river,” he said.

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