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The All-China Environment Federation

China’s largest state-run oil and gas producer PetroChina and its subsidiary PetroChina Jilin Oilfield Company have been sued by a Chinese environmental group for what they claimed severe pollution in northeast China’s Jilin Province, state media Xinhua News said.

The All-China Environment Federation (ACEF), a government-backed environmental NGO, has filed a suit in the Beijing Municipal No. 2 Intermediate People’s Court against PetroChina and its Jilin subsidiary for 60.75 million yuan (nearly $10 million) in damages over the company’s illegal discharge of pollutants that poisoned local soil and underground water.

ACEF requested the court to rule PetroChina to stop its illegal behaviors immediately and properly dispose the waste. It also lodged a police report and suggested fines to be levied on the company.

The pollutants were discharged by Songyuan Gas Plant under the PetroChina Jilin Oilfield Company.

PetroChina has sent investigation team to Jilin and vowed to take measures to rectify violations and restore the environment. An initial investigation has confirmed illegal dumping of waste water by the gas plant, the company said.

Song Qiuguo, head of Songyuan Gas Plant, has been removed from post and is assisting investigation.

In August, ACEF sued China’s State Oceanic Administration for “illegally” allowing the US oil company ConocoPhillips to restore oil production in Bohai Bay. Oil spills in an oilfield jointly owned by China National Offshore Oil Corporation (CNOOC) and ConocoPhillips have led to suspension of oil production in the bay in September 2011.