Nov 12 (Reuters) - Plains All American Pipeline ( PAA )

has agreed to pay $72.5 million to settle a lawsuit over the

2015 Refugio Beach oil spill in Santa Barbara, a filing showed

on Tuesday.

The spill occurred after a pipeline, which ran across

California's coastline, ruptured and spilled an estimated

126,000 gallons of oil into the ocean and on the beaches.

In 2020, the California State Lands Commission and insurance

firm Aspen American Insurance had sued Plains All American - the

operator of the failed pipeline - alleging negligence, willful

misconduct, and interference with prospective economic

advantage.

The state of California will receive $50.5 million from the

settlement, while Aspen will get $22 million.

Plains All American and Aspen Insurance did not immediately

respond to Reuters' requests for comment.

"This settlement ... holds the operator accountable and

provides appropriate compensation to the state for the fiscal

damages caused by this spill," Joe Stephenshaw, state lands

commissioner and California Department of Finance director, said

in a statement.

As of Sept. 30, Plains All American had estimated the total

costs it has incurred or will incur related to the failed

pipeline would be about $870 million.