Ship owner to make ‘initial payment’ for spill

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.

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.

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