ExxonMobil to Pay $5 Million to Settle Arkansas Pollution Claims

ExxonMobil Pipeline Company and Mobil Pipe Line Company will pay civil penalties, fund an environmental project and implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from a 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas.


Under a consent decree, ExxonMobil will pay $3.19 million in federal civil penalties and take steps to address pipeline safety issues and oil spill response capability.

In addition, ExxonMobil will pay $1 million in state civil penalties, $600,000 for a project to improve water quality at Lake Conway, and $280,000 to the Arkansas Attorney General’s Office for the state’s litigation costs.

The oil spill occurred on March 29, 2013, after the Pegasus Pipeline, carrying Canadian heavy crude oil from Illinois to Texas, ruptured in the Northwoods neighborhood of Mayflower, Arkansas.

Oil flowed through the neighborhood, contaminating homes and yards, before entering a nearby creek, wetlands and a cove of Lake Conway.

Some residents were ordered to evacuate their homes after the spill and remained displaced for an extended period of time.  The spill volume has been estimated at approximately 3,190 barrels, or 134,000 gallons.

“This settlement holds ExxonMobil accountable for this very serious oil spill and its disastrous impact on the Mayflower community and environment,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “This agreement is also an excellent example of federal and state cooperation that will benefit public health and the environment for years to come and most importantly prevent future disasters by requiring better pipeline safety and response measures.”

The penalties owed by ExxonMobil under the consent decree are in addition to the money that the company has already paid to reimburse federal and state response efforts and comply with orders and directives issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA).

The segment of the Pegasus Pipeline that includes the rupture site has not been used since the March 2013 spill, and under the terms of the settlement agreement, ExxonMobil must comply with all PHMSA corrective action requirements before returning the pipeline to operation.

The consent decree also requires ExxonMobil to take other pipeline safety corrective action to help prevent future ruptures and improve its spill response capabilities by providing additional training to its oil spill first responders.

In addition, ExxonMobil is required to establish caches of spill response equipment and supplies at three strategically-chosen sites along the pipeline, including one location near Mayflower in Faulkner County, Arkansas.


Copyright © Corporate Crime Reporter
In Print 48 Weeks A Year

Built on Notes Blog Core
Powered by WordPress