KEY EXXON VALDEZ CLAIMS SETTLED FOR $1 BILLION

Exxon Corp. has agreed to spend $1 billion to settle out of court a federal criminal case and separate federal and Alaska civil cases stemming from the Mar. 24, 1989, Exxon Valdez tanker oil spill in Prince William Sound off Alaska. However, the settlement is clouded, by legal actions taken to block it by Alaskan native groups that claim they were wrongly excluded from settlement negotiations. It also requires approvals by a federal judge in Anchorage and a federal appeals judge in Washington.

March 18, 1991

3 min read

However, the settlement is clouded, by legal actions taken to block it by Alaskan native groups that claim they were wrongly excluded from settlement negotiations. It also requires approvals by a federal judge in Anchorage and a federal appeals judge in Washington.

Litigation related to the spill still pending against Exxon includes individual and company civil suits and a $1 billion lawsuit filed by a group of environmental organizations.

Exxon to date has spent more than $2 billion on the spill cleanup and contends Prince William Sound is "essentially restored."

AGREEMENT DETAILS

Under the criminal plea agreement, Exxon will pay $50 million in fines and another $50 million to Alaska for restoration projects.

Funds from the $900 million civil settlement, to be paid during 10 years, will go toward an environmental restoration program administered by a joint federal-state trustee council and to reimburse past and current federal and state cleanup and research efforts.

When approved, the agreements will release Exxon from all past and future criminal and civil claims by the federal government and Alaska and vice-versa.

Exxon Chairman L.G. Rawl said, "The settlements encompass issues we were prepared to contest. However, we have agreed to the settlements because they are in the best interests of Exxon shareholders and all other involved parties. A long and costly legal confrontation would benefit no one."

DISPUTE

It isn't known whether the settlement will be further hamstrung by legal opposition from Alaskan native groups.

Washington U.S. District Court Judge Stanley Sporkin earlier this month temporarily blocked the settlement because of objections by native groups that it would hinder their chances of recovering damages in previously filed civil suits. The native groups further claimed the government has no right to settle resource damage claims related to native land without their participation.

After a hearing last week, Sporkin said he would allow the settlement to be completed if the Justice Department guarantees it won't infringe on native rights.

Lawyers for native groups objected to Justice's draft version of that guarantee, and Sporkin ordered both sides to hammer out a compromise version.

The settlement's disclosure followed, but it was unclear at presstime whether further legal action would take place preventing the two judges' approval of the settlement.