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enviroblog: The final word on Exxon Valdez
Staff - Metro reporter
Last comment by Mike_Parker 2 months, 4 weeks ago.

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On Wednesday, the U.S. Supreme Court cut the amount of punitive damages that ExxonMobil will have to pay for smashing an oil tanker into Alaska's Prince William Sound in 1989.

A lot of environmentalists will see this as a loss, because the damages were reduced from $5 billion to $2.5 billion, and then to just $500 million.

But I view this as a win, because the Supreme Court didn't say Exxon shouldn't get any punitive damages; it just said that the amount of punitive damage should equal the amount of compensatory damage. Exxon has already paid more than $500 million to compensate about 32,000 Native Alaskans, fishermen, and property owners.

I was worried that the Court would dismiss the punitive damages entirely, and that would have been wrong. The point of punitive damages is to punish, to teach the corporation a lesson so that they may change their behavior. And although $500 million is a drop in the bucket for Exxon, which last year made more profits than any company in the history of the world, it does send a message that they can't get away with committing such negligence.

And no matter what the Court had ruled, I would continue to punish Exxon myself. The truth is, I haven't bought gasoline from an Exxon station since March 24, 1989, when the Exxon Valdez spilled 11 million gallons of oil into the pristine waters of Prince William Sound. Nor do I plan to ever purchase from the company again.

Why? Not because of the spill itself. All oil companies have spills now and then (though usually small ones). That's a fact of doing business in the refining industry.

No, what made me angry was Exxon's arrogance. They refused to apologize for an incident that fouled 1,300 miles of shoreline, killed hundreds of thousands of marine birds and mammals, and left many Alaskan fishermen with no way to earn a living.

They blamed it on the ship's pilot, Joseph Hazelwood, who was allegedly drunk. But guess what? If Exxon had taken the proper precautions, it wouldn't have mattered if Hazelwood made a mistake.

Exxon should never have been sailing a single-hull tanker through an environmentally sensitive area. A double-hull ship is considered the industry standard, because if the outer wall is breached, you still have an inner wall to prevent oil from being spilled.

But Exxon used the single-hull, because it was cheaper, because they knew they could get away with it, and because they just didn't care.

I'm not the kind of person who holds a grudge, as long as the offending party is truly sorry for their transgression.
But I've never seen any sign of contrition from Exxon executives.

So, while the company won't have to pay nearly as much in punitive damages as they thought, they've lost me as a customer -- forever. And I know I'm not the only one who feels this way.


Latest Activity: Jun 25, 2008 at 6:12 PM



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johngalt commented on Friday, Jun 27, 2008 at 00:20 AM

There is a boatload (pardon the pun) of environmental wackiness out there to poke fun at. Things like draining our lake for the benefit of snails (or whatever aquatic dredge-fodder it was) while we all suffer toilets that won’t flush with the government-mandated tablespoon of water.

I become cynical despite being quite enamored of nature and the environment. I know, for example, when I sit down to watch an excellently produced nature program on Discover, that it IS coming- just a matter of when. It’s the one common denominator in every single broadcast of the genre: the animals are suffering and it’s MY fault. Every life form out there from the smallest flea to the largest mammal has a natural habitat and I am infringing on it in some way. Even the common chicken has a natural habitat- Gainesville. But as a human, I apparently do not have one.

But even an advocate of global warming like me cannot overlook the abhorrence of the Valdez accident and its environmental and economic impact. This was a preventable and inexcusable catastrophe and many of our fellow Americans still suffer for it. The real polluters, Exxon-Mobile in this case, want to seek cover in the overhyped environmental “crisis" rhetoric which is prevalent today and hope we chalk it up to yet another frivolous law suit. But as weary as I am of environmental hype and as bullish as I am on unadulterated American capitalism, I don’t patronize those jerks either. Frankly, I was hoping this debacle would end up putting them out of business. Unfortunately, they got off easy.

So…not that you probably care that much about the opinion of an old cynic like me, I think your article is right on. Not to say we can’t find some other issues to argue about though :). By the way, just kidding on being a proponent of global warming…but just to be safe, ask me in January when my pooch’s water bowl is frozen over for the third straight day- who knows?

J.G.

Mike_Parker commented on Monday, Jul 14, 2008 at 08:53 AM

Debbie,

Nice entry.

Huge subject.

I think Exxon should have paid much more for the damages than it did.

The "case" did not include a "secret settlement" with the "Seattle Seven."

The Seattle Seven settled out of court and those damages were not included in calculating punitive damages.

If other settlements exist, and many out of court settlements include "no disclosure" clauses, then the punitive damages should be more than $500 million --- twenty years later.

With the damage payments to the Seattle Seven, the punitive damages, under the Supreme Court guidelines, should be more than $750 million.

The court, by the way, doesn't collect the money and hand it over. Exxon may just use their considerable legal team to start bargaining with individuals. Certainly after 20 years, some of the individuals in the case have died. They saw their way of earning a living, the value of their private property, and their cultural heritage all destroyed.

Mike


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