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Exxon Valdez reopener claims dropped
The Alaska Department of Law and the U.S. Department of Justice have dropped judicial actions against Exxon Mobil Corp. regarding the 1989 Exxon Valdez spill, the state said Oct. 14.
Prince William Sound harlequin ducks and sea otters thought in 2006 to have been impacted by lingering subsurface oil have recovered to pre-spill population levels, the state said in a statement. Over time, exposure to subsurface oil has diminished to the point that scientists believe it is no longer of biological significance to the ducks and otters.
On that basis, the governments have decided to withdraw their 2006 request to Exxon to fund bio-restoration of subsurface lingering oil patches.
A 1991 plea agreement resolved criminal charges against Exxon and a settlement agreement between Exxon and the state and federal governments resolved civil claims between them, with Exxon paying $125 million for a criminal fine and restitution and $900 million under the civil settlement, to be paid over 10 years to reimburse past costs and fund restoration of injured natural resources.
Reopener in 1991 settlement The 1991 settlement included the “Reopener for Unknown Injury” allowing governments to seek up to an additional $100 million if they later found substantial losses or declines in populations, habitats or species that could not have been anticipated at the time of the settlement.
A conditioner of the reopener was a requirement that the governments present a detailed plan to Exxon by Sept. 1, 2006, for how to restore the substantial loss or decline of natural resources. The governments presented a plan in 2006 to address patches of oil from the Exxon Valdez spill that recent surveys had found in subsurface sediments and among rocks on a number of beaches in the spill area. This lingering oil appeared to be impeding recovery of two species, harlequin ducks and sea otters.
Exxon declined to participate, but the governments undertook a series of scientific studies to improve understanding of why oil had not yet degraded and to design specific measures to make it non-toxic.
During the period of the studies, however, continued wildlife monitoring showed that the harlequin ducks and sea otters appeared to have recovered to pre-spill population levels and are no longer exposed to oil more than populations outside the spill area.
Based on that information, the governments have concluded that the legal requirements for pursuing a reopener claim are no longer met.
The governments will continue to pursue steps to deal with lingering oil through the Exxon Valdez Oil Spill Trustee Council.
- Petroleum News
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