Exxon Mobil Fined in 2006 Mystic River Oil Spill

Corporation to Pay $6 million for Criminal Violation of the Clean Water Act

A wholly-owned subsidiary of Exxon Mobil Corporation was recently sentenced with violating the criminal provisions of the Clean Water Act in connection with a spill of approximately 15,000 gallons of diesel oil into the Mystic River from Exxon Mobil’s oil terminal in Everett in January 2006.

The subsidiary and defendant in the case, ExxonMobil Pipeline Company, was sentenced for its criminal violation of the Clean Water Act and will pay over $6.1 million and has agreed to have the Everett terminal monitored by a Court appointed observer.

The spill happened in the early morning hours of January 9, 2006, and continued for an entire 24-hour period. A total of approximately 2,500 gallons of kerosene and 12,700 gallons of low sulfur diesel poured into the Mystic River, causing a visible blue-green sheen on the river that eventually spread up the Island End River and down to Boston Harbor, prompting several reports to the Coast Guard. ExxonMobil had no idea anything had gone wrong until the morning of January 11, when the Coast Guard came to ask questions about the sheen on the river.

Faulty valves have been blamed for the spill and the government successfully argued that ExxonMobil was aware of the defects but failed to do anything about them. Prosecutors also argued that the company was negligent in providing adequate resources and oversight to the maintenance and operation of the Everett terminal. Had employees completed their required regular inspection of the facility, the spill would have been detected while it was happening, according to information released by the US Attorney.

As part of its plea agreement, ExxonMobil has agreed to pay the maximum possible fine of $359,018.00 (twice the cost of the clean up of the spill) and the clean up costs of $179,634.00. It will also make two community service payments. Specifically, it will pay $1 million to the Massachusetts Environmental Trust to improve water quality in the Mystic River. MET was established in connection with the Boston Harbor clean up litigation in 1989, and the one million dollar payment in this case represents the largest settlement it has received since its founding. ExxonMobil also will pay $4,640,982.00 to the North American Wetlands Conservation Act fund to be used to restore wetlands in Massachusetts. ExxonMobil further agreed that for the next three years, the Everett facility will be monitored by an court appointed official, and will be subject to a rigorous environmental compliance program.

Since 1929, Exxon Mobil Corporation and its corporate predecessors have owned a marine distribution terminal in Everett (the “Everett Terminal”), where oil tankers deliver petroleum products that are distributed from the terminal throughout the area.

The case was investigated by the Environmental Protection Agency and the United States Coast Guard and was prosecuted by Assistant U.S. Attorney Jonathan F. Mitchell of the U.S. Attorney’s Economic Crimes Division, Special Assistant Attorney Andrew Lauterback of the Environmental Protection Agency, Special Assistant United States Attorney Russell E. Bowman, LCDR, of the United States Coast Guard and Gary Donner, Trial Attorney, Environmental Crimes Section, U.S. Department of Justice.

Information courtesy US Attorney’s Office, District of Massachusetts.