Exxon Faces Lawsuit Over Arkansas Oil Spill

ExxonMobil Oil Sands

Exxon Mobil Corporation (NYSE:XOM) has been sued by the Arkansas Attorney General Dustin McDaniel and the federal government over the March 29 pipeline rupture that sent more than 210,000 gallons of heavy tar sands crude into the waterways and residential neighborhoods if the town of Mayflower. In the lawsuit filed Thursday, the government and Arkansas Attorney General alleged that the oil giant stored oil and other contaminated clean-up material along a state highway. The company was ordered to remove that on May 1. Penalties in that case may go up to $25,000 per violation, says Steve Hergreaves of CNN Money.

Exxon Mobil

Civil Penalties

The oil spill killed wildlife, prompted evacuations, polluted a lake and wetlands, prompted evacuations and caused health complaints from residents of Mayflower. Exxon Mobil Corporation (NYSE:XOM)’s Pegasus pipeline ruptured on March 29, but the clean up still continues on Mayflower. And none of the 22 families who left their homes after the oil spill have returned home.

The Environmental Protection Agency and the Arkansas Attorney General Dustin McDaniel seek civil penalties against Exxon Mobil Corporation (NYSE:XOM) for violating federal and state laws relating to clean water and air. The state also wants the Irving, Texas-based company to pay for the entire cleanup and removal costs. The state law violations carry a penalty of about $10,000 per violation per day.

Exxon Aware of the Lawsuit

An Exxon Mobil Corporation (NYSE:XOM) spokesperson said that the company is aware of the lawsuit, but hasn’t reviewed the allegations yet. The pipeline that ruptured was used to carry heavy crude oil from Canada’s tar sands region, which is considered much more toxic than traditional oil. Though most of the houses were built in the region after the pipeline was constructed, most residents said they didn’t even know about the pipeline passing through their neighborhood.

In the past, BP Plc (NYSE:BP) (LON:BP) has also faced criminal charges and billions of dollars in penalties related to the Deepwater Horizon spill, which sent more than 5 million barrels of oil into the Gulf of Mexico.

Exxon Mobil Corporation (NYSE:XOM) shares were down 0.82 percent to $90.58 at 11:42 AM EDT.

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About the Author

Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at [email protected] and on Twitter @VikShukla10

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