Exxon Aims to Bail on Payments for Valdez Damage

[stockholmer]

http://motherjones.com/blue-marble/2011/10/will-exxon-have-pay-ongoing-valdez-damage?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+motherjones%2FTheBlueMarble+%28Mother+Jones+|+The+Blue+Marble%29


It's been more than 22 years since the Exxon Valdez dumped 10 million gallons of crude into Alaska's Prince William Sound, but you don't have to look very hard to find lingering impacts from the spill. You can actually still find oil on the shore there, the fisheries are still struggling, and some bird species haven't recovered. But now Exxon is saying it won't pay up, despite an agreement to cover those additional cleanup costs.

Five years ago, the US government asked Exxon for money to continue the cleanup effort there. In its latest court filing, Exxon appears to be trying to shirk its obligation to pay for additional damages. In its filing to the US District Court in Alaska on September 30, the company argues that the agreement it reached with the government only covers "restoration" work—not additional "clean-up."

Before we get furter into the details, a quick recap: In 1991, Exxon struck a deal with the government to pay just $900 million in damages over 10 years for cleanup costs. The deal allowed the government to reopen the case, if it could prove that there were remaining problems that had not been adequately addressed. That "reopener" clause only extended until September 2006. So when that date rolled around and there was still evidence of that habitat and species were directly impacted by the spill, the Department of Justice and the State of Alaska filed a claim asking Exxon for an additional $92 million payment.

Exxon has so far rebuffed their claim. In the company's latest court filing, it argues that the original agreement "makes clear that the parties limited the Reopener to 'restoration projects,' that 'restoration' is something separate from and in addition to 'clean-up.'" The agreement, the company argues, "ended Exxon's further obligations for 'clean-up' once and for all."

snip

[stellanoir]

1. I'm shocked

just plain shocked.

Exxon always seemed to be such a nice and caring guy.

/sarcasm

[gratuitous]

2. Leave Mobil-Exxon alo-o-o-o-o-o-ne!

You're all a bunch of vultures, trying to bring down the winners!

[ThomWV]

3. Now there's a surprise for you. No one could have predicted it.

[abelenkpe]

4. If they are allowed to do this

then that really really sucks.

[Blue_In_AK]

5. Of course, they plan to bail.

They've already managed to knock the award down to pennies on the dollar, so why should they give up now.

[Blue_Tires]

6. The lawyers have made out even better than Exxon

getting paid to tangle this up in court for 22 years...

[lunasun]

7. you mean Exxon would rather spend the money fighting it in court , than pay??

[Octafish]

8. Now I won't go so far as to say Exxon isn't being a good corporate citizen.

I'll leave that to the experts:

4 Dirty Secrets of the Exxon Valdez Oil Spill

...and a great documentary on the disaster:

Black Wave

And may those on the U.S. Supreme Court be held accountable for their, um, role in shafting the good people of Alaska.

[City Lights]

9. "No one could have predicted..."

:argh: