Alaska, US Send Exxon US$92 Million Bill for Valdez
Date: 04-Sep-06
Country: US
The Alaska Department of Law and the US Department of Justice made the demand for environmental damage not covered in a 1991 US$900 million settlement with Exxon.
The 1991 settlement allowed the state and federal government to seek additional damages not foreseen at the time of the settlement. The agencies had until Friday to make their demand of Exxon Mobil, the successor company to Exxon.
Alaska and federal officials said in May they would seek additional damages.
"This was a formal step that's required under the consent decree," said Deputy Alaska Attorney General Craig Tillery.
Exxon Mobil in the past has said it does not believe there are lingering environmental damages not covered in the 1991 settlement, and is expected to contest the US$92 million demand.
If Exxon Mobil does fight the additional damages, the US District Court for Alaska will hear the case.
When the Exxon Valdez supertanker grounded on a reef in 1989, it spilled about 11 million gallons of crude oil that reached over 1,200 coastline miles. It is considered one of the worst environmental disasters in US history.
Exxon and its successor Exxon Mobil have paid more than US$2 billion in cleanup costs, in addition to the 1991 settlement as well as US$300 million in claims to affected fishermen.
But the corporation continues to contest a US$5 billion punitive damages verdict issued by a US District Court jury in 1994 in the class-action case brought by thousands of fishermen, Alaska Natives, property owners and others.