Thursday, June 01, 2006

US govt seeks $92 mln extra for Exxon Valdez spill - Yahoo! News

US govt seeks $92 mln extra for Exxon Valdez spill - Yahoo! News: "WASHINGTON (Reuters) - The U.S. government on Thursday said it will pursue $92 million in extra damage claims against Exxon Mobil Corp. for the 1989 Exxon Valdez oil spill in Alaska, the worst in U.S. history.


Four U.S. agencies including the Justice Department and the state of Alaska say it will cost that much more to clean up lingering environmental damage from when the Exxon Valdez supertanker ran aground in Alaska's Prince William Sound and spilled about 11 million gallons of crude oil."
--- read more about the Exxon Valdez Oil Spill

The gist is this: In 1991, Exxon paid a civil settlement of 900 million (to who?). In that settlement there was a "reopener" clause, that allows for up to 100 mil extra for unforeseen damages. Realizing that Exxon Mobil made 36 BILLION last year and there is still oil in the sound - And they haven't settled punitive damages with the prince william sound stakeholders - The government is requesting 92 million in "damage claims" in a clean up plan.

Exxon issued the statement that further funding from Exxon isn't "justified".

If Exxon refuses to pay, the government can sue them for it before a september 1st deadline.

My take: Now that Exxon is doing well and the government is doing poorly, the Government wants to reneoigiate it's cozy sweatheart deal. Exxon should and probably will pay. But the real issue is the punitive damages to the fisherman, natives and landowners of the region. Exxon thinks they don't have to pay and I think they do.