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Judge ‘dismayed’ over oil spill studies Federal and state governments report delays in wrapping up research related to unresolved Exxon Valdez ‘reopener’ demand Wesley Loy For Petroleum News
A federal judge said he’s “dismayed” at the slow progress on studies that could determine whether the state and federal governments try to collect a huge sum of money for the 1989 Exxon Valdez oil spill in Alaska’s Prince William Sound.
Seven years ago, in 2006, the governments hit ExxonMobil with a demand for more than $92 million for habitat restoration. The governments say lingering oil remains embedded in Prince William Sound and Gulf of Alaska beaches, and it could be harmful to wildlife.
To date, ExxonMobil hasn’t paid the demand, and the governments haven’t sued to collect the money.
The governments made the demand under a 1991 civil settlement that saw Exxon pay $900 million for the oil spill.
The settlement contained a “reopener” clause entitling governments to request up to $100 million extra to address unanticipated injury to habitats or species.
Contracting and other snags Since making the $92 million reopener demand, the governments say certain studies have been under way to clarify just what sort of actions, if any, might be appropriate to restore the injured habitats.
Government lawyers outlined the status of these studies in a June 28 report to U.S. District Judge H. Russel Holland, who long has presided over Exxon Valdez matters.
The status report indicated the conclusion of a number of studies had been delayed for various reasons.
One study looks at the feasibility of injecting nutrients and oxygen into sediments to speed up the natural breakdown of oil. The field work included visits to 23 beaches to evaluate, from an engineering standpoint, their suitability for bioremediation, the status report said.
A final report on this work was due to the Exxon Valdez Oil Spill Trustee Council by April 15. But the analysis of data from the field work was “delayed significantly due to unforeseen contracting issues,” the governments said, and the final report now is due at the end of January 2014.
Other studies have to do with the impacts of oil on harlequin ducks and sea otters. These studies also have been delayed, or are still undergoing analysis or peer review, the status report said.
Once the field studies are complete, the governments will “determine the next steps,” taking into consideration the environmental benefit, likely costs and public input.
“The Governments anticipate discussing with Exxon its interest in participating in those next steps, as appropriate, and a possible resolution of the Governments’ demand to Exxon under the Reopener,” the status report said.
Spilled oil still toxic, activists say In a brief July 1 order, Judge Holland said he accepted the status report, but added: “The court is dismayed that so few of the projects that the Governments had expected to be completed by now have been completed. The court urges that those who are assisting the Governments in their endeavors be required to complete their work by the revised completion dates.”
He directed the governments to submit another status report by March 14, 2014.
Lawyers for ExxonMobil previously have said the $92 million demand is invalid, that the oil spill cleanup concluded long ago, and that the company owes nothing more.
An organization called Public Employees for Environmental Responsibility, or PEER, on July 15 issued a press release calling attention to the latest status report and Holland’s order.
“Amazingly, it’s been seven years since the governments demanded this payment from Exxon but they have yet to collect a dime,” said Rick Steiner, a PEER board member and retired University of Alaska professor who has pushed the court to force Exxon to pay.
Holland has declined to order payment, saying it’s up to the governments, not the court, to press a reopener claim.
“The coastal ecosystem injured by the Exxon Valdez spill is still a long way from full recovery,” the PEER press release said. “Lingering oil has been degrading at a far slower rate than anticipated and is still affecting natural resources at toxic levels. Several marine species, from herring to otters to orcas, have not yet recovered from the spill.”
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