Exxon Fined $1.05 Million for 2011 Yellowstone Pipeline Break. Company Also Agrees to Settlement of Claims Related to Seven Private Properties Tied to Spill
Exxon Mobil Corp. must pay a $1.05 million penalty for safety violations related to a 2011 pipeline break under Montana’s Yellowstone River, federal regulators said Friday evening.
The pipeline was buried beneath the riverbed, but flooding amid a summer snow melt exposed it and stressed it to the breaking point. An estimated 1,500 barrels of oil spilled into the river and were carried miles downstream.
The Yellowstone River is again the site of a major cleanup effort, following another pipeline break last week about 230 miles east of Exxon’s spill. It isn’t yet clear what caused Bridger Pipeline LLC’s Poplar pipe to fail under the river. The company now estimates that about 960 barrels—more than 40,000 gallons—spilled into the partially iced-over river.
That incident fouled drinking water for residents of the city of Glendive, Mont., but state officials said Friday that the water is once again safe to drink.
In the case of the 2011 spill, Jeffrey Wiese, associate administrator of the Pipeline and Hazardous Materials Safety Administration, upheld a finding that Exxon hadn’t adequately prepared for the possibility that flooding could cause the pipeline to fail—something that had happened to pipelines in the area in the past. Exxon had argued that its line had survived more severe floods intact and it didn’t have reason to believe that the line was in danger.
Exxon spokesman Christian Flathman said in a statement Saturday that Exxon is reviewing the agency’s final order. The company has 20 days to ask the agency to reconsider the ruling.
The agency found that Exxon complied with federal regulations and did take steps ahead of time to prevent and mitigate a potential spill in the area, withdrawing one of its previous allegations against the company. That helped reduce the fine by nearly $700,000 from what the agency proposed in 2013.
Also on Friday, Exxon agreed to a $2 million settlement of claims relating to seven private properties impacted by the oil spill, said Jory Ruggiero, an attorney for the plaintiffs.
“Exxon Mobil Pipeline Company committed to paying for the cleanup and all valid claims related to the incident. This settlement was an extension of that process,” Mr. Flathman said.
Exxon reached a $1.6 million settlement with the state of Montana in 2013 and agreed to reimburse the state for more than $760,000 in cleanup costs.