Murphy Facing Katrina Suits

Oil leaks at refinery blamed on hurricane

EL DORADO, Ark. -- Murphy Oil Corp. said in filings with the Securities & Exchange Commission (SEC) on Friday that two class-action lawsuits have been filed against the company and its Murphy Oil USA Inc. unit because of leaks blamed on Hurricane Katrina, said the Associated Press.

The suits were filed by residents of St. Bernard Parish, La., and seek unspecified damages caused by a release of crude oil at the company's Meraux, La., refinery.

Murphy said the leaks were a result of Katrina-related damage to a crude oil storage [image-nocss] tank. Murphy said in the filings that it believes insurance will cover the release of oil and does not expect to incur significant costs associated with the lawsuits.

The El Dorado, Ark.-based company also said it does not believe the lawsuits will have a material adverse effect on its net income, financial condition or liquidity.