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- INTERVIEW, Page 62Exxon Strikes Back
-
-
- One year after the Alaska spill, the company's chairman,
- LAWRENCE RAWL, speaks bluntly about mounting troubles, battered
- images and Captain Joe Hazelwood
-
- By RICHARD BEHAR and Lawrence Rawl
-
-
- Q. Exxon bashing is now in vogue. While Johnson & Johnson
- got good press for its handling of the Tylenol scare in 1982
- and Perrier won praise recently for quickly recalling its
- tainted spring water, Exxon is charged with "arrogance." Are
- you arrogant?
-
- A. We would have liked to recall the oil off the Prince
- William Sound. We called, but it didn't hear us. Now let's talk
- about that word arrogance. Last year customers boycotted us and
- cut up 40,000 credit cards. But, on average, those cards
- weren't being used much, while many other customers had ordered
- more than 160,000 cards in that same time period. So the media
- ask, "Has this hurt you? Do you think your company will
- survive?" Well, certainly we will survive. Ralph Nader says,
- "Boycott!" and when we're asked, we say we haven't noticed it.
- Is that arrogance? Maybe I should have said that I'm wringing
- my hands or something. I guess I'm supposed somehow to be
- generating sympathy, but it's very hard to do if you ask me a
- straight question and I want to give you a straight answer.
-
- We said we would do all we could after the Alaska spill: we
- took responsibility, we spent over $2 billion, and we gave
- Alaska fishermen $200 million on no more than their showing us
- a fishing license and last year's tax return. And we're
- "arrogant." That bothers the hell out of me. Maybe "big" is
- just arrogant. Or maybe I just get emotional and that's
- arrogant. Or maybe I say things people don't like to hear. Is
- that arrogance? You tell me.
-
-
- Q. But Alaska was just the beginning. Next there was a
- refinery explosion in Louisiana. Then a 567,000 gallon spill
- off New York City, and most recently another spill in the same
- area. Isn't there a pattern here?
-
- A. I think, in the end, the Alaska spill was caused by
- compounded human failure. In Louisiana that was legitimately
- an act of God. We still don't know why that pipeline broke, and
- it doesn't look like corrosion. But the refinery was halfway
- back up in 15 days, and is now fully operational. Incidentally,
- there were a lot of heroes in that accident. It was a good
- safety response. As for Arthur Kill [the big New York spill],
- that was an act of God ripping that pipeline, but the way it
- was handled afterward was human error.
-
-
- Q. You refuse to play the game of corporate statesman. Thus
- your p.r. problem began instantly when you failed to rush to
- the scene of the Alaska spill. Was that a big mistake?
-
- A. We had concluded that there was simply too much for me
- to coordinate from New York. But let me just tell you
- something. There were a lot of things lying out there before
- the Exxon Valdez hit the rocks, from the great concern over the
- hole in the ozone to the greenhouse effect and acid rain. This
- tanker went on the rocks, and visually it was perfect for TV
- and not too bad for pictures of oily birds in the printed
- media. How would those environmentalists ever let that go? If
- I just went up there and said I was sorry? I went on TV and
- said I was sorry. I said a dozen times that we're going to
- clean it up. But people keep saying that I don't commit. I don't
- know what the hell that means. What do you do when you commit?
- Do you hang yourself or hold a gun to your head and say, "I'm
- gonna squeeze it five times, and if there's not a bullet in
- there I'll be all right?"
-
- We're gonna take our heat, and we're gonna clean it up, but
- it wouldn't have made any difference if I showed up and made
- a speech in the town forum. I wasn't going to spend the summer
- there; I had other things to do, obviously.
-
-
- Q. The Justice Department has indicted Exxon on criminal
- charges, with the implication that the company willfully caused
- the Alaska spill. Is that unfair?
-
- A. They almost act as if it was some conspiracy of ours to
- foul up that sound. In the future, corporations are going to
- conclude that it just doesn't pay to take responsibility and
- make restitution. Instead companies will say, "Let everyone
- else clean it up and sue us and see if they can collect."
-
-
- Q. Captain Joseph Hazelwood feels equally cheated. Federal
- laws grant immunity to captains who report oil spills.
- Hazelwood quickly reported his, but Alaskan officials are bent
- on frying him anyway.
-
- A. Sure, but my sense of his trial is that the prosecution
- is not doing a very good job. It's a jury trial, and if the
- prosecution gets too heavy on Hazelwood, it's gonna make the
- jury sympathetic. I'd never heard of the man before the
- accident, but I gather that when it came to being a mariner and
- operator, he was one of the best. At times I've been very, very
- irritated with Hazelwood, but I've also put myself in his shoes
- and said, "Jesus, the poor guy's just taking all that damned
- heat up there." It's been tragic for him. It's been a bitch for
- us too.
-
-
- Q. But Exxon fired Hazelwood.
-
- A. A lot of the public and press think we fired him because
- we thought he was drunk on the ship, but we never said that,
- and we have cautioned people not to assume it. Hazelwood was
- terminated because he had violated company policies, such as
- not being on the bridge and for having consumed alcohol within
- four hours of boarding the ship.
-
-
- Q. Some of your critics say Exxon's huge personnel cutbacks
- in the 1980s have hurt the company in terms of safety and
- maintenance. Are they right?
-
- A. We haven't reduced people at the lowest level, and our
- supervision of them hasn't changed. But somewhere between the
- top of the house and the bottom there are employees who need
- more training, as well as managers who have to do a better job
- of evaluating people. Since the Alaska spill, we have had every
- affiliate worldwide go back and review their practices, but as
- they say in the tire business, you've got to look at where the
- rubber hits the road. What's motivating these people on the
- docks and ships? Are they upset? Is there too much pressure?
- Maybe we'll have industrial psychologists talk to them. We're
- not rushing people when they're moving oil. We want them to
- slow down. I don't have the answer, but I'm dissatisfied with
- sitting tight and hoping the bad luck goes away, because if
- you've got bad luck, you've missed something somewhere.
-
-
- Q. Why did you close down your East Coast refinery? After
- all, the recent spill of 5,000 gallons was cleaned up very
- quickly.
-
- A. It's sort of like taking time out in a basketball game
- when the point guard starts shooting air balls. We said, "Let's
- just shut the damn thing down." Fortunately, we've got longer
- than a 20-second time-out. We're going back to square one, and
- we're gonna get it right. And if we can't operate that thing
- right, we won't operate it at all. You can carry all of this
- further, away from Exxon, and look at the whole industry's
- problems. In 1989 there were 368 spills just in New York
- harbor, so you might ask, "What is happening to this industry,
- and is Exxon just a part of it?" Well, I don't want to be a
- part of that, and that's why we're rededicating ourselves.
-
-
- Q. In 1986 FORTUNE magazine listed Exxon as one of America's
- ten "most admired" companies. Do you think you can ever win
- back that kind of public confidence?
-
- A. I've been with Exxon for 38 years, and the thing that has
- bothered me most is not the castigation, the difficulties or
- the long hours; it's been the embarrassment. I hate to be
- embarrassed, and I am. Our safety practices have been
- excellent, and we have drilled them and drilled them into our
- employees over the decades. There is a lot of pride inside
- Exxon all over the world, and that pride is being challenged.
- We'll win it back, but we're not going to do it by debating on
- TV with some guy who says, "You know, you killed a number of
- birds." And we say, "We're sorry, and we're doing all we can."
- There were 30 million birds that went through the sound last
- summer, and only 30,000 carcasses have been recovered. Just
- look at how many ducks are killed in the Mississippi Delta in
- one hunting day in December! People have come up to me and
- said, "This is worse than Bhopal." I say, "Hell, Bhopal killed
- more than 3,000 people and injured 200,000 others!" Then they
- say, "Well, if you leave the people out, it was worse than
- Bhopal."
-
-
- Q. There will be more calls for your ouster at next month's
- annual stockholders' meeting. Personally, how do you cope?
-
- A. You eventually get immune to it, but sometimes I lay
- awake at night. Sometimes I feel I've been working my butt off
- all this past year, and I haven't got anything done. It's a
- frame of mind. I go home, my kid says to me, "Dad, what's the
- matter? You look awful. Did you have a hard day?" I say, "I
- must have had a hard day; I'm totally exhausted."
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