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October 2012

Vol. 17, No. 44 Week of October 28, 2012

Studies continue long after Exxon Valdez

Field work relates to unresolved government demand for $92 million from company to deal with lingering effects of Alaska oil spill

Wesley Loy

For Petroleum News

More than 23 years after the wreck of the tanker Exxon Valdez, work continues in the field to assess the extent and effects of lingering oil on Alaska beaches.

The work is related to a lumbering legal conflict between the federal and state governments and ExxonMobil concerning whether the company owes more money to deal with the spill’s aftermath.

The governments demanded an additional $92 million from the company several years ago, in 2006. But ExxonMobil thus far hasn’t paid the money, the governments haven’t sued for it, and a federal judge has declined to order the company to hand it over.

The judge has, however, asked for periodic status reports on the matter.

The latest of these was filed Sept. 28 in U.S. District Court in Anchorage.

Beach experiments

The joint federal-state status report details continuing field work that the governments say is necessary to “refine” their plan for addressing the lingering oil remaining in the subsurface of Prince William Sound and Gulf of Alaska beaches.

The work includes testing bioremediation techniques on the beaches, and conducting wildlife studies.

“During the summer of 2012, additional work was done on the pilot study, begun in 2011 at four beaches in Prince William Sound, to test the feasibility of a bioremediation technique aimed at providing nutrients and oxygen to oiled subsurface sediments to accelerate biodegradation of oil,” the status report says.

The 2011 studies indicated the bioremediation method reduced by about 50 percent the concentration of polycyclic aromatic hydrocarbons on two of the four beaches, the report says.

During 2012, researchers returned to two beaches.

“At one of two beaches where degradation was not observed in 2011, scientists changed their method of injection to take a second look at whether natural degradation there can in fact be enhanced with subsurface injection of oxygen and nutrients. At the second beach, where degradation did occur, they continued injection of oxygen and nutrients to ascertain whether degradation beyond the fifty percent level could be achieved and whether the degradation can be achieved farther seaward. In addition, twenty-three beaches were visited and evaluated, from an engineering perspective, to determine their suitability as candidates for bioremediation using subsurface injection of oxygen and nutrients.”

A final report on this work is due to the Exxon Valdez Oil Spill Trustee Council by April 15, 2013, the status report says.

Otters and ducks

The status report also detailed continuing studies to evaluate the effects of lingering oil on wildlife.

Aerial surveys of the sea otter population in western Prince William Sound were conducted in July. Sixty sea otters were captured, and blood samples from the otters are being analyzed.

“These analyses are aimed at evaluating continuing exposure and health of sea otters,” the status report says, with a report on this work is due to the trustee council in April 2013.

Work also continues on determining whether there are “spatial linkages” between the distribution of lingering oil within Prince William Sound and the distribution of sea otters, harlequin ducks and other nearshore vertebrate species.

The point of all this work is to allow the governments to “determine the next steps to make final decisions regarding whether, and what types of, actions are appropriate to restore the injured habitats,” the status report says.

The governments “will evaluate implementation of an effective treatment technology by taking into consideration the environmental benefit, likely costs, and public input.”

The report adds that the governments “anticipate discussing with Exxon its interest in participating in those next steps and a possible resolution” of the money demand.

Roots of demand

On Oct. 9, District Judge H. Russel Holland issued an order saying he was in receipt of the status report, and that the court “will look forward to receiving a further, joint status report from the governments on or before June 30, 2013.”

Lawyers for ExxonMobil have argued the demand for money is invalid, that the oil spill cleanup concluded long ago and that the company owes nothing more.

The money demand stems from a 1991 civil settlement under which Exxon paid $900 million for the March 24, 1989, oil spill, which released nearly 11 million gallons of Alaska North Slope crude oil into Prince William Sound.

The settlement contained a “reopener” clause entitling the state and federal governments to request up to $100 million more for restoration projects to address unanticipated injury to habitat or species.

In 2006, the governments exercised the reopener, presenting Exxon with a comprehensive habitat restoration plan and a letter demand for $92 million to implement it.






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