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- <text id=90TT0197>
- <title>
- Jan. 22, 1990: Exxon's Attitude Problem
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1990
- Jan. 22, 1990 A Murder In Boston
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- BUSINESS, Page 51
- Exxon's Attitude Problem
- </hdr>
- <body>
- <p>A spill raises new questions about the giant's safety measures
- </p>
- <p> Is Exxon plagued by bad luck or a bad attitude? After
- suffering three major accidents in just the past ten months,
- the largest U.S. oil company is earning a reputation as a
- careless and callous despoiler of the environment. Last week
- Exxon ran into a storm of criticism from New York State and New
- Jersey authorities when it was disclosed that the company's
- shoddy equipment and poor maintenance procedures helped cause
- one of the largest oil spills in the region's history. On New
- Year's Day a 12-in. pipeline running under the Arthur Kill
- waterway, which separates Staten Island and New Jersey, ruptured
- and spewed out 567,000 gal. of No. 2 heating oil. Much of the
- fuel drifted into surrounding wetlands, which serve as a
- rookery for rare wading birds.
- </p>
- <p> "This is a mini-Alaska," declared New York Attorney General
- Robert Abrams, referring to last year's 11 million-gal. spill
- from the Exxon Valdez.
- </p>
- <p> Appallingly, Exxon workers were warned of the possibility
- of a rupture but did not act. The pipeline, which connects an
- Exxon refinery with storage tanks, had a leak-detection system
- in place that flashed an alarm when the accident occurred. But
- instead of shutting down the pipeline, which would have kept
- the spill to a minuscule amount, employees failed to take the
- alarm seriously for nearly six hours. Reason: the safety system
- was known to be defective and had frequently sent out false
- alarms.
- </p>
- <p> Exxon's mop-up team did earn modest praise for its
- effectiveness in soaking up some of the oil with cotton booms.
- By week's end Exxon had recovered about 130,000 gal., but the
- damage remains to be calculated. More than 300 birds have died,
- and if the oil destroys the area's marine organisms, several
- species of migratory birds may starve to death when they arrive
- in the spring for breeding.
- </p>
- <p> Authorities in New Jersey have filed a lawsuit against
- Exxon, and New York officials threatened to do so but held off
- when the oil company agreed to assume some liability for the
- spill. Both states want the oil giant to pay compensation for
- damage to the environment and reimbursement for the
- governments' cost of helping in the cleanup. Exxon's
- environmental bills are mounting. The company has spent more
- than $1 billion in its efforts to clean up the Valdez spill, and
- is being sued for billions of dollars more by the state of
- Alaska, the fishing industry and other aggrieved parties.
- </p>
- <p> Besides the two spills, Exxon suffered an explosion and fire
- in late December at a major Louisiana oil refinery. To many
- Exxon critics, the string of accidents suggests that the
- company stubbornly refuses to embrace a policy of safety and
- prevention. Says Albert Appleton, New York City's new
- commissioner of environmental protection: "Exxon has a
- corporate philosophy that the environment is some kind of
- nuisance problem and a distraction from the real business of
- moving oil around." Last week Exxon named Edwin Hess, a senior
- vice president, to the new post of vice president in charge of
- environment and safety. Never before has the company assigned
- those issues to such a high-ranking executive.
- </p>
- <p>By Barbara Rudolph. Reported by Martha Smilgis/New York.
- </p>
-
- </body>
- </article>
- </text>
-
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