Alaska Sues Seven Oil Companies : Official Says Spill Damages May Reach ‘Multiple Billions’

The state of Alaska sued Exxon Corp. and six other oil companies Tuesday, alleging negligence for failing to prevent and clean up the nation’s worst oil spill.

The lawsuit, filed in state Superior Court at Anchorage, does not specify the amount of damages sought for losses from the March 24 tanker disaster, which left nearly 11 million gallons of crude oil in Prince William Sound and the Gulf of Alaska.

“If you assume that the damages haven’t been half mitigated and then you add in any potential punitive damages, this is probably in the multiple billions,” said Robert LeResche, the state oil-spill coordinator who announced the lawsuit at a news conference.

The lawsuit seeks monetary damages for destruction of the environment and harm to the region’s fisheries-based economy.

It also seeks punitive damages, compensation for cleanup costs and the costs of studying and monitoring the spill, as well as a negligence fine under state law of up to $100 million.

“The state recognizes that more than 1,000 square miles of its lands, waters and resources in or near Prince William Sound, the Kenai Peninsula and Kodiak Island suffered severe environmental damage, including the devastation of beaches and coastal waters, the death or injury of thousands of animals, the curtailment of important commercial fisheries, and the impairment of recreational opportunities,” a state news release said.

The lawsuit alleges that Exxon Corp. and Exxon Shipping Co., the subsidiary that owned the tanker Exxon Valdez, are responsible for the tanker running aground by failing to staff it adequately and supervise the crew properly.

The state also says Alyeska Pipeline Service Co., a consortium of oil companies that runs the trans-Alaska oil pipeline, failed to take prompt and adequate measures to contain and remove the spilled oil or prevent it from spreading into environmentally sensitive areas.

Alyeska was responsible for the initial response to the spill.

The lawsuit names Alyeska and each of the consortium companies: Exxon Pipeline Co., an Exxon Corp. subsidiary; Arco Pipeline Co.; BP Alaska Pipelines Inc.; Mobil Alaska Pipeline Co.; Amerada Hess Pipeline Corp.; Phillips Alaska Pipeline Corp.; and Unocal Pipeline Co.

Those companies controlled Alyeska’s budget to a degree that makes them responsible for Alyeska’s response to the spill, the lawsuit says.

The lawsuit also charges that the oil companies misrepresented their ability to contain and clean up oil spills, violated federal marine pilotage laws and inflicted “severe emotional distress on Alaska residents.”

The state also asks for an injunction to ensure that Exxon and Alyeska continue the cleanup until the environment is restored.

In a statement issued at its New York headquarters, Exxon said it had not seen the complaint “but it appears to completely disregard the fact that Exxon’s response to the accident has been massive and responsible.”