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Ship owner to make ‘initial payment’ for spill

San Francisco announces $2 million for bay cleanup costs

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updated 8:49 p.m. ET March 2, 2008

SAN FRANCISCO - Agents for the owner of a cargo ship that dumped oil into San Francisco Bay have agreed to pay $2 million to the city of San Francisco.

City Attorney Dennis Herrera says the agreement, announced Sunday, was an "initial payment" to cover some cleanup costs after the November crash, not a final settlement.

Thousands of birds died, beaches closed and the crabbing season was delayed after the 900-foot Cosco Busan sideswiped the Bay Bridge. The crash cut a gash in the hull, and 54,000 gallons of oil were spilled.

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The agreement was reached with Hudson Marine Management Services of Pennsauken, N.J., acting on behalf of the ship's Hong Kong-based owner, Regal Stone Ltd.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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