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Exxon Mobil's pipeline arm agrees to $1.4 million penalty for crude oil spill

August 29, 2014
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The pipeline company of Exxon Mobil Corp. has agreed to pay a $1.4 million civil penalty for an alleged crude oil spill in Louisiana, the Department of Justice and the Environmental Protection Agency (EPA), said in a joint statement.

ExxonMobil Pipeline confirmed with Dow Jones Newswires that it has entered into a consent decree to resolve the claims and added that the financial settlement avoids protracted litigation between the parties.

The U.S.'s complaint alleges that the Exxon Mobil's pipeline arm discharged at least 2,800 barrels, or 117,000 gallons, of crude oil in violation of Section 311 of the Clean Water Act.

The company's pipeline ruptured near Torbert, about 20 miles west of Baton Rouge, and crude oil spilled into the surrounding area and into an unnamed tributary connected to Bayou Cholpe.

"Oil spills into our nation's waters endanger public health and the environment and warrant concerted enforcement efforts," Sam Hirsch, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resources Division, said in a statement. "The settlement achieves a just result and furthers our enforcement mission," he added.

The $1.4 million penalty is in addition to the costs incurred by ExxonMobil to respond to the oil spill and to replace the segment of ruptured pipeline, the agencies said.
ExxonMobil is completing cleanup actions pursuant to an administrative order issued by the Louisiana Department of Environmental Quality, they added.

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