City Attorney secures $5 million settlement for Fisherman’s Wharf oil leak

SAN FRANCISCO, CA (November 19, 2025) — City Attorney David Chiu announced today that the City Attorney’s Office secured a settlement agreement requiring petroleum companies, Pilot Thomas Logistics, LLC and General Petroleum, LLC, to pay the City $5 million and complete cleanup of an oil leak that occurred in the San Francisco Bay near Fisherman’s Wharf in 2020. The settlement, approved by the San Francisco Port Commission yesterday, repays the City for the costs it incurred to immediately begin cleanup work and requires the companies to complete remaining remediation.

“San Francisco is a pillar of environmental stewardship, and there was no way we were going to let an oil company off the hook for an oil leak they caused,” said City Attorney Chiu. “Our City workers sprang into action to notify authorities and clean up the leak to protect our Bay. I’m pleased we ultimately reached a resolution that cleans up the damage to our Bay and makes the City whole.”

“The Port applauds the City Attorney’s unwavering efforts in achieving this successful outcome,” said Michael Martin, Acting Executive Director of the Port of San Francisco. “We look forward to working closely with Pilot Thomas as they undertake their cleanup and work to fulfill their obligations under the settlement.”

Background
The Port of San Francisco owns the marine dock located at Hyde Street Harbor in Fisherman’s Wharf and leases the property to tenants Pilot Thomas and General Petroleum.

In April 2020, Port employees observed oil film on the water surface at Hyde Street Harbor and immediately reported their observations to the appropriate federal, state, and local regulatory agencies. Port employees also began cleanup work and investigated the source of the oil. During their investigation and cleanup, the Port determined the oil recovered was the same sold by Pilot Thomas and notified the Environmental Protection Agency (EPA).

The EPA provided emergency response oversight and issued a cleanup order to Pilot Thomas and the Port as the owner of the property. The California Regional Water Quality Control Board (Water Board) eventually became the lead regulatory agency and issued an order governing completion of the long-term cleanup.

In an attempt to avoid responsibility for the leak, Pilot Thomas filed a lawsuit in 2022 against the City alleging the Port caused the oil leak. The City vehemently denied the allegations and filed a cross-complaint against Pilot Thomas and General Petroleum.

The City’s lawsuit alleged Cross-Defendants violated California law by failing to inspect, test, maintain, and repair the fuel pipelines and electronic leak detection system for the marine fuel dock, which resulted in diesel fuel leaking from the underground pipelines into the San Francisco Bay. The lawsuit included claims for statutory fees, fines, and penalties under a variety of state and federal laws, including the California Oil Spill Prevention and Response Act.

On October 17, 2025, the City secured a $5 million settlement from Pilot Thomas and General Petroleum that requires the companies to complete and pay for all remediation work ordered by the Water Board. Of the $5 million settlement, $262,000 will be contributed to the State’s Environmental Enhancement Fund.

The case is Pilot Thomas Logistics, LLC v. City and County of San Francisco, et al., San Francisco Superior Court, Case No. CGC-22-601688. View the settlement resolution approved by the San Francisco Port Commission.