EXXON Fends off U.S. Government's Claim for Additional Spill Damages

Published Jun 8, 2006 12:01 AM by The Maritime Executive

ExxonMobil has deflected the latest U.S. Government claim that it should pay another $92 million to defray additional cleanup cost to the Alaskan coastline. More than 17 years after the Exxon Valdez ran aground in Prince William Sound, the U.S. Justice Department and the Alaska Department of Law say ‘residual oil caused by the Exxon Valdez in 1989 is still toxic and it continues to impact the state’s natural resources." EXXON has already paid $900 million in a civil settlement, but the agreement had a "re-opener clause,'' which allows for additional payments for unforeseen natural resource damage. The latest governmental call for compensation from ExxonMobil, comes as record high crude oil prices have translated into huge profits for the oil majors while consumers feel the economic pinch from higher energy prices. EXXON has publicly stated that there are no new developments to warrant additional payments. Moreover, the oil giant says the possibility of oil residue causing further biological harm is a hypothesis without scientific evidence that the residue is harming the population, animal species, or the environment. Meanwhile, Federal and State authorities point to loss of habitat due to the oil, and state that current science evidence supports their position of lingering toxicity. Exxon has countered the argument saying the use of government data actually points to the evidence of prior spills that have lasted for 20 years or more.