Valdez Oil Spill Controversy Continues : Environment: Alaska and environmentalists are worried that the Justice Department may not push Exxon to fully restore Prince William Sound.

A meeting of agencies charged with assessing natural-resource damage from Exxon’s Alaska oil spill has fueled suspicions among environmentalists and Alaska state officials about federal intentions.

They fear that the federal government--particularly the Justice Department--won’t adequately press Exxon to restore Prince William Sound.

Exxon has spent about $2 billion so far cleaning up the oil, and this week announced that it would continue that effort this year. Still to come, however, under provisions of the Superfund law and Clean Water Act, is the cost of restoring wildlife and habitat damaged in the disaster. Recent surveys of the sound by such groups as the Cousteau Society suggest massive--and potentially expensive--injury to animals, beaches and the once-pure waters.

Some environmentalists, while stressing that at this stage any estimates are highly speculative, have said natural-resources restoration could run from several million dollars to more than $1 billion.

The draft minutes, currently circulating privately in Washington, New York and Alaska, describe a March 2, 1990, meeting of state and federal natural resource regulators and the Washington Policy Group, which includes policy-makers from the Office of Management and Budget, the Environmental Protection Agency, the White House and the Justice Department. In the minutes, Justice Department representatives appear to characterize the U.S. public’s mood as unreasonably vindictive toward Exxon, saying “the public would not be satisfied unless Exxon’s assets were essentially depleted and all board members put in jail . . . “

Justice representatives also announced that the agencies “should not expect further money from Exxon” beyond $15 million that the company has spent already to fund studies of spill damage, according to the draft minutes. Interior Secretary Manuel Lujan Jr. has asked Exxon for $20.4 million more to pay for last year’s studies, and has been expected to call for more funds to continue the work in 1990.

“We have not reached a decision on the additional $20 million,” said one Exxon official who declined to be named.

“The state (of Alaska) is quite concerned at what appears to be a shortage of financial resources to carry forward the work of the trustees,” said Gregg Erickson, director of oil spill assessment and restoration for the Alaska Department of Fish and Game. “(The meeting) naturally concerns us because we need a good assessment of the damages. . . . It could make it difficult for us to recover the damages, it’s that simple.”

“We are very, very concerned that the federal agencies will be able to carry out the needed studies . . . and therefore provide a firm foundation for recovering damages from Exxon,” said Sarah Chasis, a senior attorney with the Natural Resources Defense Council.

The NRDC, along with the National Wildlife Federation, the Wildlife Federation of Alaska and other private individuals and groups, also is suing Exxon for damages to Alaska’s natural resources. They and the state of Alaska hope the federal agencies take the lead in assessing the costs of restoring the sound.

Chasis, who has seen the minutes, said, “My God, they’re really bitter about the fact that the plea bargain was killed.” Recently, Justice Department attempts to forge a settlement with Exxon of criminal and reportedly some civil charges fell apart when the State of Alaska angrily refused to agree to what it considered a premature and inadequate assessment of the cost of restoration.

Justice Department representatives at the meeting are described as saying that “the settlement offer accepted by Exxon, but turned down by Alaska, was a very good offer.” The settlement would have set up a $150-million restoration fund, to be increased only with Exxon’s agreement.

Meanwhile Friday, representatives of the Justice Department and at least one of the federal agencies at the center of policy discussions, maintained that the government is not retreating from the fray.

“We’re proceeding on the assumption that we’re going to litigate, and that Exxon will be arraigned in court in April,” said Amy Casner of the Justice Department, which will serve as trial lawyer for the Department of the Interior and other federal trustees charged with responsibility for restoring the environment of the sound.

Casner declined to speak of the meeting minutes.

Steve Goldstein, chief spokesman for the Interior Department, doesn’t think that any reluctance at Justice would inhibit prosecution of Exxon anyway. “We are the clients,” said Goldstein, “and they (Justice) act on behalf of the clients.”

Goldstein also sees little long-term difficulty if Exxon decides not to continue paying to assess damage to the sound. “The secretary (Lujan) has made it very clear to Exxon that we are going to hold their feet to the fire,” said Goldstein, “and that they . . . will either pay now or they will pay later.”

Goldstein believes that Exxon may be reluctant to pay more for damage assessments because it is getting ready to go to court. “They’re positioning themselves for a court case,” said Goldstein, “and that’s unfortunate because they’ve acknowledged publicly that they have a responsibility.”

Still, Chasis and others see a worrisome pattern in Justice Department actions.

“They tried to enter into this plea-bargain arrangement a couple of weeks ago, and we felt that was really giving away the store,” said Chasis. “And I just learned yesterday that they were trying to cut back significantly on the studies that the state and federal governments (are making to assess damage.)

“Exxon has leverage at this point because the federal government doesn’t have the money to put into that assessment,” she continued, “so that’s a bargaining chip that Exxon has. . . . They may not want to provide that money unless they get something in return.”

“hen a department like ours has a budget of $5 (billion) to 7 billion dollars,” countered Bob Walker, an Interior Department spokesman, “we’ll find the money.”