The tugboat Scandia experienced an engine fire while towing the barge North Cape, which was carrying a substantial cargo of home heating oil. As the fire became uncontrollable, the crew decided to steer the tugboat towards Moonstone Beach in South Kingstown, Rhode Island, where it eventually ran aground. The vessel's grounding caused a catastrophic release of heating oil into the coastal waters, resulting in what became known as the North Cape oil spill. The amount of oil spilled was estimated to be over 800,000 gallons, making it one of the largest oil spills in Rhode Island's history.

Following the incident, environmental cleanup crews immediately began working to contain and recover the oil, which posed a severe threat to the local marine ecosystem, including fish, birds, and other wildlife. The cleanup efforts involved skimmers, booms, and chemical dispersants, yet the scale of the spill complicated the response. The region faced long-term environmental impacts as the oil spread through coastal marshes and sandy beaches.

This spill drew significant attention from state and federal agencies, raising questions about maritime safety regulations and the need for stringent measures to prevent similar incidents in the future. The consequences of the spill further emphasized the delicate balance between maritime commerce and environmental protection. Legal and financial repercussions followed, leading to discussions on liability and the responsibility of maritime operators to adhere to safe practices to avoid environmental disasters.