Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

dixiegrrrrl

(60,010 posts)
Wed Apr 3, 2013, 11:30 AM Apr 2013

US law says no 'oil' spilled in Arkansas, exempting Exxon from cleanup dues

The central Arkansas spill caused by Exxon’s aging Pegasus pipeline has reportedly unleashed 10,000 barrels of Canadian heavy crude - but a technicality says it's not oil, letting the energy giant off the hook from paying into a national cleanup fund.

Legally speaking, diluted bitumen like the heavy crude that's overrun Mayflower, Arkansas, is not classified as 'oil'. And it's that very distinction that exempts Exxon from contributing to the government's oil spillage cleanup fund.


Companies that transport oil are required to pay $.08 per barrel into the Oil Spill Liability Trust Fund. The cash is used by the US government to respond to oil spills. But there's a catch - Exxon is exempt from paying into the fund, because its pipelines aren't considered to be carrying "conventional oil." However, it appears that very fund that is responsible for cleaning up at least part of Exxon's mess.

"Exxon, like all companies shipping toxic tar sands, doesn’t have to pay into the fund that will cover most of the clean up costs for the pipeline’s inevitable spills,


and

"The question is why we should continue this exemption given that it's clear tar sands oil is more likely to spill because it's more corrosive... and more and more tar sand is coming into the US.”

http://rt.com/usa/arkansas-spill-exxon-cleanup-244/

The entire article is worth the read, for all sorts of unexpected details.
Pssst...pass it on...
36 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
US law says no 'oil' spilled in Arkansas, exempting Exxon from cleanup dues (Original Post) dixiegrrrrl Apr 2013 OP
"US law" = corporate owned government law ...and WTF L0oniX Apr 2013 #1
+1 liberal_at_heart Apr 2013 #2
+2 forestpath Apr 2013 #3
+1 Newest Reality Apr 2013 #5
of corporations, by corporations, FOR corporations. pansypoo53219 Apr 2013 #11
Well said! City Lights Apr 2013 #34
it will take forever to get any compensation riverbendviewgal Apr 2013 #4
Plus there is this: dixiegrrrrl Apr 2013 #6
"federal pipeline safety official" will be someone who used to work for Exxon or... L0oniX Apr 2013 #8
Last time I worked on the BP spill, I noticed they had a HR office right in the command post... rwsanders Apr 2013 #12
Move along nothing to see here!!!!! Initech Apr 2013 #7
Armed to the teeth, both in the physical, and the abstract. Eeeewessay Eeeewessay! Dryvinwhileblind Apr 2013 #10
So all an oil company has to do to avoid responsibility for its product is add and additive of some jwirr Apr 2013 #9
BP used tons of Corexit so it could avoid paying for some of the oil. dixiegrrrrl Apr 2013 #20
This sort of story Saviolo Apr 2013 #13
Unfortunately, I feel the same way. NCarolinawoman Apr 2013 #14
Welcome to the new Corporate Fascism Saviolo Apr 2013 #16
I hear ya.... dixiegrrrrl Apr 2013 #15
Really sad things is... Saviolo Apr 2013 #17
Do these fuckers not live on the same planet as the rest of us? demwing Apr 2013 #18
They go from enclosed offices to enclosed cars to enclosed palatial suites or houses dixiegrrrrl Apr 2013 #22
^^^Bingo^^^ deutsey Apr 2013 #23
and we are the bacon demwing Apr 2013 #29
To Corporations..... ReRe Apr 2013 #19
Easy fix to this law computer style,,, benld74 Apr 2013 #21
Who owns the pipeline? RC Apr 2013 #24
Hear! Hear! Moostache Apr 2013 #28
"if you work for a corporation" demwing Apr 2013 #30
My bad...got a bit too vague there! (*blush*) Moostache Apr 2013 #35
this sort of thing is what they spend all the lobbying money on librechik Apr 2013 #25
HUGE K & R !!! WillyT Apr 2013 #26
We should return the "not-oil-sludge" to their HQ. Moostache Apr 2013 #27
Imagine how Teddy Roosevelt would have responded to this shit storm demwing Apr 2013 #31
My god they do own us. AllyCat Apr 2013 #32
Carlin was not kidding when he told us that. dixiegrrrrl Apr 2013 #33
Potemkin laws. nt Javaman Apr 2013 #36
 

L0oniX

(31,493 posts)
1. "US law" = corporate owned government law ...and WTF
Wed Apr 3, 2013, 11:32 AM
Apr 2013

More corporate welfare ...of course they should morally have to pay for 100% of the cleanup and pay for any value depreciation of the homes and pay the people who had to move. God bless America and the mutha *uckas who profit from disasters.

Newest Reality

(12,712 posts)
5. +1
Wed Apr 3, 2013, 11:39 AM
Apr 2013

Fascism works!

Gee, I wonder just how far we would get away with shenanigans like that in the real world where a veil, logo and the three magic letters CEO don't exist as anything more than a symbol?

riverbendviewgal

(4,254 posts)
4. it will take forever to get any compensation
Wed Apr 3, 2013, 11:39 AM
Apr 2013

And will be too little too late. The cleanup crews (if they get paid) and lawyers will benefit. Exxon will go on being Exxon.

dixiegrrrrl

(60,010 posts)
6. Plus there is this:
Wed Apr 3, 2013, 11:42 AM
Apr 2013
Federal officials send corrective action order to Exxon following Arkansas oil spill

The order prevents ExxonMobil from restarting operations on the failed segment of the pipeline until the agency is satisfied with repairs and is confident that all immediate safety concerns have been addressed.

Investigators are still working to figure out what caused the pipeline to rupture, but the corrective action order says ExxonMobil reversed the system flow of the pipeline in 2006.

“A change in direction of flow can affect the hydraulic and stress demands on the pipeline,” the order, dated Tuesday, says.

The pipeline, which runs from Patoka, Ill., to the Texas Gulf Coast, was originally built in 1947 and 1948, according to federal pipeline safety officials. It remains out of service for now. In order for that to change, ExxonMobil would need written approval from a federal pipeline safety official, according to the corrective action order.
ExxonMobil also has to submit a restart plan, complete testing and analysis about why the pipeline failed and jump through a number of other hoops under the order.
http://m.washingtonpost.com/business/federal-officials-send-corrective-action-order-to-exxon-following-arkansas-oil-spill/2013/04/02/b695172e-9bf3-11e2-9219-51eb8387e8f1_story.html


 

L0oniX

(31,493 posts)
8. "federal pipeline safety official" will be someone who used to work for Exxon or...
Wed Apr 3, 2013, 11:48 AM
Apr 2013

will be promised a future high paying job at Exxon.

rwsanders

(2,606 posts)
12. Last time I worked on the BP spill, I noticed they had a HR office right in the command post...
Wed Apr 3, 2013, 01:08 PM
Apr 2013

Now isn't that just bait to tell people to "do the right thing" (for them)?

jwirr

(39,215 posts)
9. So all an oil company has to do to avoid responsibility for its product is add and additive of some
Wed Apr 3, 2013, 12:24 PM
Apr 2013

kind and then the product is no longer theirs. Great. Seems to me that the banks are not the only companies that are too big to fail and too big to exist.

dixiegrrrrl

(60,010 posts)
20. BP used tons of Corexit so it could avoid paying for some of the oil.
Wed Apr 3, 2013, 02:01 PM
Apr 2013

The Corexit made the oil less visible, some of it sank, thus BP could argue about how many barrels of oil it had to pay for in the spill.
Now Exxon can, legally yet, avoid paying into the insurance fund.

Saviolo

(3,283 posts)
13. This sort of story
Wed Apr 3, 2013, 01:20 PM
Apr 2013

... it just fills me with an overwhelming sense of hopelessness and helplessness. Futility in the face of enormous corporate interests that are only looking out for their own bottom line regardless of the human, economic, or environmental cost. If it were profitable to make the Rocky Mountains from Colorado to Alberta into a radioactive slag heap, you can bet some mega multi-nationals would not only find a justification for it, but make it sound as though it was the only way for the country to succeed.

I don't mean to sound defeatist, but how do we fight this? What do we do? Instead of -eight cents-/barrel, they'd rather pay for an army of lawyers to make sure that they receive no fines (that don't even make a dent in their immense profits) and have to take no responsibility when something like this happens. Or Deepwater. Or the Exxon Valdez. Or the spills in Canada. Or flammable gas coming out of the water pipes. Or strip mining. Or sink holes.

Vote with your dollars? Short of buying your gas in Venezuela, I don't know how different the oil companies are from each other. They're all fracking. They're all drilling. They all make billions upon billions in profit (not revenue - profit). Meanwhile, the human cost will remain high. Temperatures will rise, land will disappear, species will disappear, our air will become darker and dirtier, all the while the scientist paid for by the oil companies will make sure that the discussion is really about -whether or not there is a problem- and never even look at any solutions.

I'm lost.

dixiegrrrrl

(60,010 posts)
15. I hear ya....
Wed Apr 3, 2013, 01:29 PM
Apr 2013

At this stage in my life, considering my current vaious limitations of money and easy mobility, the only thing I can find to do is write emails, and buy as little of the coporation's stuff as possible.

Saviolo

(3,283 posts)
17. Really sad things is...
Wed Apr 3, 2013, 01:38 PM
Apr 2013

The way mega-corps work, you may still be buying from that corporation without even know it. Who knows which companies own parts of which other companies? Altria (former Philip Morris) is a huge tobacco company that formerly own Kraft. If you were buying food from Kraft, you were supporting a tobacco company. All their twisty little invisible ownership paths make it nigh impossible to be -truly- informed about where your money is really going. More armies of lawyers ensure that.

Lawyers gonna lawy.

 

demwing

(16,916 posts)
18. Do these fuckers not live on the same planet as the rest of us?
Wed Apr 3, 2013, 01:53 PM
Apr 2013

why do they feel comfy shitting where they sleep?

dixiegrrrrl

(60,010 posts)
22. They go from enclosed offices to enclosed cars to enclosed palatial suites or houses
Wed Apr 3, 2013, 02:04 PM
Apr 2013

and from enclosed cars to enclosed private jets to private islands to vacation.
No, they do not live in the same world, they live in literal bubbles of enclosures.

deutsey

(20,166 posts)
23. ^^^Bingo^^^
Wed Apr 3, 2013, 02:23 PM
Apr 2013

The words of the Beatles are even more relevant today:

In their sties with all their backing
they don't care what goes on around
In their eyes there's something lacking
What they need's a damn good whacking...

Everywhere there's lots of piggies
living piggy lives
You can find them out to dinner
with their piggy wives
Clutching forks and knives
to eat their bacon...

ReRe

(10,597 posts)
19. To Corporations.....
Wed Apr 3, 2013, 01:53 PM
Apr 2013
K&R

..... damages = externalities. Remember that word. That's their word for the damages they leave behind in messes like this. And guess who pays for the clean up? Go take a look in the mirror. You do. We, the taxpayer's pay for the cleanup. The Corps get us coming and going, folks. Then here comes that pesky deficit. Have to cut benefits to pay off the debt. Austerityville. Some days, it doesn't even pay to get out of bed.

benld74

(9,910 posts)
21. Easy fix to this law computer style,,,
Wed Apr 3, 2013, 02:02 PM
Apr 2013

Companies that transport oil are required to pay $.08 per barrel

Companies that transport fluids which contain large quantities of bitumen are required to pay $50.00 per barrel, AND absorb ALL clean up costs associated with ANY spill containing their product
 

RC

(25,592 posts)
24. Who owns the pipeline?
Wed Apr 3, 2013, 02:25 PM
Apr 2013

Who owns the crud crude flowing through that pipeline?
Who profits from the pipe's contents when it get to its destination?
Why should it matter what was inside that pipe anyway? It is now outside that pipe causing problems.
The owner(s) of the ruptured pipeline and the owner of the contents that leaked out, are responsible for the cost of cleaning it up, regardless of what leaked. The fact is the pipe did leak and has caused long term damage to the surrounding environment. An environment that includes a housing sub-division, with family housing. Family's with children.

If corporations want person hood, then the upper management need to be exposed to the same penalties as a real person would for the same crimes, including long prison terms. They need to be responsible for something besides hogging the profits and collecting golden parachutes.

Moostache

(9,897 posts)
28. Hear! Hear!
Wed Apr 3, 2013, 02:36 PM
Apr 2013

There needs to be a serious expansion of consequences to "corporate persons"...namely, if you work for a corporation that makes political donations, hires or runs lobbyists, or in any way profit from the corporate activity, then you are CRIMINALLY liable for the actions and results of the corporation.

We will sooner see monkeys fly out of my ass, but I can keep hoping against hope.

 

demwing

(16,916 posts)
30. "if you work for a corporation"
Wed Apr 3, 2013, 02:44 PM
Apr 2013

then we'll be a nation of criminals.

Can we revise that to "if you are a part of the executive management of a corporation?"

Moostache

(9,897 posts)
35. My bad...got a bit too vague there! (*blush*)
Thu Apr 4, 2013, 12:15 AM
Apr 2013

That's pretty much what I meant...the executives and anyone in the board of directors.

You want to see safety regulations and compliance go stratospheric just threaten the bluebloods with actual sentences. I remember the total fear in the meetings right after Sarbannes-Oxley was implemented following the Enron debacle. I think the CEO of the company I was with at the time actually crapped his pants on that one.

Moostache

(9,897 posts)
27. We should return the "not-oil-sludge" to their HQ.
Wed Apr 3, 2013, 02:33 PM
Apr 2013

Since this is not really "oil", but it flowed from one of their pipelines and they do not want to pay to clean it up, I assume that means they want it back. No problem, let's get a few hundred Shop-Vacs and leaky, rusted 55-gallon drums, suck this stuff up and dump it in Exxon's corporate parking lots.

Save the nastiest barrel for the CEO's private entrance.

 

demwing

(16,916 posts)
31. Imagine how Teddy Roosevelt would have responded to this shit storm
Wed Apr 3, 2013, 02:48 PM
Apr 2013

and then wonder how our Democratic Party Leadership can feel comfy being shamed by a Republican that's been dead for almost 100 years?

Latest Discussions»General Discussion»US law says no 'oil' spil...