EPL Reaches Resolution for 'Environmental Violations'

Energy Partners, Ltd. (EPL) has reached a resolution of the previously announced federal investigation into possible environmental violations relating to a February, 2006 inspection of the Company's East Bay field. The Company, pursuant to a plea agreement with the United States Department of Justice (DOJ), entered a plea to one strict liability, misdemeanor violation of the River and Harbors Act, 33 United States Code 407, in the United States District Court for the Eastern Division of Louisiana. The plea concludes the investigation into possible environmental violations at the Company's East Bay field arising out of on-site governmental agency inspections conducted in the field in late 2005 and early 2006 when the Company was in the process of restoring field operations following extensive damage caused by the hurricanes of 2005. EPL stated that the ongoing field operations have remained unaffected by these proceedings.

Under the agreement, the Company has paid a fine of $75,000 and has made a community service payment of $25,000 to the Louisiana State Police Right to Know Fund. As a part of the plea agreement, the Company is subject to inactive probation for one year. The above mentioned actions represent the final resolution of this matter with all federal agencies involved with the investigation.

Richard A. Bachmann commented, "We are pleased to have this matter resolved, and EPL and its employees fully cooperated throughout this investigation. We have taken further steps to strengthen our environmental policies and procedures and we remain committed to the protection of the environment within all of our operations."