Spill

Oil Industry Profited Off Polluting Oil Spills, Fraud Investigation Underway

When an oil company’s negligence leads to an oil spill, the financial costs incurred by the company can be crippling.  They have to pay clean up costs, federal fines, and, in many cases, settlements to victims who have been affected by the spill.  Since these costs can be such a burden to the multi-billion dollar industry, they’ve figured out a way to recoup some of their losses by deceiving all the players involved.

Of course, these aren’t the massive oil spills that we’ve seen from Exxon and BP; these are the smaller ones that most people don’t hear about that typically occur when storage containers leak.  That’s where the industry has learned that oil spills can actually be good for their bottom line.

The scheme is known as “double dipping,” and it involves oil companies receiving both insurance funds for spill cleanup along with state funds to clean up oil leaks from underground tankers.  This allows the company to use funds for cleanup, and usually have a little left over to put in their pockets.

A new report by Reuters succinctly captures the essence of what’s happening in a single quote:  “When I first saw these cases, I thought this is kind of incredible,” said New Mexico assistant attorney general Seth Cohen, who handled the lawsuit for the state. “The oil companies have, in effect, profited off polluting.”

Duke Energy Spills Thousands Of Tons Of Coal Ash Into North Carolina River

Residents in the city of Eden, North Carolina are currently in danger of having their drinking water destroyed thanks to Duke Energy.  The coal giant has reported a coal ash spill in the Dan River with as much as 82,000 tons of the toxic pollutant released into the waterway.

According to EcoWatch, it took an astounding 24 hours after the accident occurred for Duke to issue a press release to inform the public about the chemicals that were very quickly making their way down river.  It is currently estimated that 22 million gallons of coal ash are now flowing along the river.  The spill has already been declared the third largest in U.S. history.

This was not an unavoidable catastrophe.

Duke was warned by the U.S. Environmental Protection Agency (EPA) in September 2009 that the coal ash storage site was falling apart, and the EPA even noted several instances of coal ash sludge already leaking from corroded pipes.  The EPA report also noted that portions of the dam that were supposed to be keeping the coal ash in its retention pond were crumbling.

The coal ash spill is the second major environmental chemical spill in less than a month, following the West Virginia chemical spill in early January.

West Virginia Polluter Freedom Industries Files For Bankruptcy To Halt Lawsuits

Freedom Industries, the company that recently leaked thousands of gallons of toxic chemicals into the Elk River in West Virginia, quietly filed for bankruptcy this past Friday to shield themselves from the onslaught of lawsuits filed against the company.

The current owner of Freedom Industries, J. Clifford Forrest, took control of the company about a week before the chemical spill occurred, and only a week later filed for bankruptcy.  According to the filing, the company owes more than $3.6 million to creditors (a fact that was known when Forrest bought the company in late December). 

What Forrest couldn’t have known at the time was that he was sitting on a time bomb, and that his newly purchased company had been skirting safety regulations and vital equipment upgrades in an effort to save a few bucks in the short term. 

The company is now facing an investigation by the U.S. Department of Justice, in addition to at least 20 separate lawsuits from residents. The number of lawsuits is expected to rise, as the chemicals spill is estimated to have poisoned at least one-sixth of West Virginia’s entire water supply.

But Forrest isn’t the victim in this case. His decision to file for bankruptcy protection had nothing to do with the prior debts that the company owed, and everything to do with preventing the millions of dollars his firm will be forced to pay out in lawsuit settlements. The bankruptcy filing will effectively temporarily “stay” the lawsuits, which prevents any payments from being made.

Forrest knew this, and this is why he had his company file bankruptcy. But this doesn’t mean that the company is no longer in business. To the contrary, Raw Story has revealed that Forrest is also the owner of a brand new firm called Mountaineer Funding LLC, which is funding the company to the tune of $5 million (more than enough to handle their current, non-lawsuit liabilities). So the liabilities of Freedom Industries can be handled by Forrest’s funding firm, as can the daily operations, but the lawsuits are now being held in limbo since Freedom Industries is technically “bankrupt.”

Coal Chemicals Taint Water Supply of 300,000 In West Virginia, Hundreds Sickened

Early Thursday, a chemical spill along West Virginia’s Elk River contaminated the tap water of as many as 300,000 West Virginia residents across nine West Virginia counties. The chemical spill occurred at a storage facility for Freedom Industries less than two miles from a major water treatment plant.

Freedom Industries produces chemicals that are used widely in mining and steel production.

The leaking storage tank contained the chemical 4-Methylcyclohexane Methanol which is used to “treat” coal supplies before they are shipped for burning. According to ThinkProgress, the chemical “severe burning in throat, severe eye irritation, non-stop vomiting, trouble breathing or severe skin irritation such as skin blistering.”

According to the West Virginia Department of Environmental Protection (DEP), between 2,000 and 5,000 gallons of the toxic chemical made its way into the water supply. 

Residents in the area were immediately warned to stop using tap water, out of fear that the chemicals could severely harm anyone who consumed them. Chemical levels have fallen in the two days since the spill, but the ban remains in effect as the levels in the water are still far too dangerous for residents.

As of Friday, according to The Guardian, at least 670 people had called into the poison control center with reports of vomiting, nausea, skin irritation, and other symptoms. 

Despite Flaws, Pennsylvania Regulators Fast Track FirstEnergy Coal Ash Disposal Plans

Across the U.S., the shale rush has unleashed a frenzy of excitement about domestic energy supplies.

But the oil and gas produced from fracking comes along with billions of gallons of wastewater and tons of mud and rock that carry radioactive materials and heavy metals.

As problems with disposal mount, the industry has offered mostly vague promises of “recycling” to describe how the waste will be handled over the long run.

As the nation gears up to produce vast amounts of shale oil and gas — and the toxic waste that comes along with it — it’s worth taking a look back at the failures of another industry to handle its toxic waste responsibly — the coal industry. 

Communities across America are still struggling to resolve problems left behind decades ago from coal mining and related industrial pollution.

These aren’t merely yesterday’s problems – the ash from burning coal at coal-fired power plants remains the single largest wastestream in the U.S.

Coast Guard Proposal to Allow Barges to Haul Fracking Wastewater Draws Fire From Environmentalists

The U.S. Coast Guard released plans that would allow wastewater from shale gas to be shipped via barge in the nation’s rivers and waterways on October 30 — and those rules have kicked up a storm of controversy. The proposal is drawing fire from locals and environmentalists along the Ohio and Mississippi rivers who say the Coast Guard failed to examine the environmental impacts of a spill and is only giving the public 30 days to comment on the plan.

Three million people get their water from the Ohio River, and further downstream, millions more rely on drinking water from the Mississippi. If the Coast Guard's proposed policy is approved, barges carrying 10,000 barrels of fracking wastewater would float downstream from northern Appalachia to Ohio, Texas and Louisiana.

Environmentalists say a spill could be disastrous, because the wastewater would contaminate drinking water and the complicated brew of contaminants in fracking waste, which include corrosive salts and radioactive materials, would be nearly impossible to clean up.

The billions of gallons of wastewater from fracking represent one of the biggest bottlenecks for the shale gas industry.

States atop the Marcellus shale are brimming with the stuff. Traditionally, oil and gas wastewater is disposed by pumping it underground using wastewater disposal wells, but the underground geology of northeastern states like Pennsylvania makes this far more difficult than in states like Texas, and Ohio has suffered a spate of earthquakes that federal researchers concluded were linked to these wastewater wells. The volumes of water used by drillers for the current shale gas boom are unprecedented.

Revealed: Never Before Seen Photos of Tesoro Fracked Oil Spill in North Dakota, Pipeline Restarted Today

A month after over 865,200 gallons of oil spilled from Tesoro Logistics' 6-inch pipeline near Tioga, North Dakota, the cause of the leak is still largely unknown to anyone but Tesoro. The pipeline resumed operations today.

Carrying oil obtained via hydraulic fracturing (“fracking”), the controversial horizontal drilling method used to capture oil and gas found embedded in shale rock basins worldwide, the Bakken Shale pipeline spill on September 29 was the largest fracked oil spill in U.S. history. Oil spill experts say the spill may be even bigger than originally estimated. 

Yet few details of what caused the spill - and how to prevent it from happening again - have arisen in the month since it occurred. 

The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) believes a lightning strike may have created the quarter inch hole in the pipeline, leading to the spill

PHMSA says it will carry out a rigorous investigation into the cause of the spill, but allowed the restart after Tesoro agreed to the agency's safety order mandating aerial monitoring of the pipeline over the next three days during the restart and then weekly for the next year, along with 20 other things.

The safety order also mandates Tesoro provide a documented updated within six months indicating how it enhanced its control room monitoring, instructs Tesoro to finish the final mechanical and metallurgical testing report of the failed pipe within 30 days and dictates that within “90 days complet[ion of] a root cause failure analysis for the Line that contains a detailed timeline of events.”

Documents obtained by Greenpeace USA under North Dakota's Open Records Statute show the oil has settled over 12 feet below the ground layer of the soil. The oil that settled on the surface was burned off.   

“At 10-12 feet below surface, there is a extensive clay layer that underlies the entire hill top,” Kris Roberts, Environmental Response Team Leader for the North Department of Health's Division of Water Quality, explained in an October 3 field report.

An Orchestrated Cover Up Of Exxon's Pegasus Pipeline Spill Health Hazards?

Nearly six months have passed since ExxonMobil’s Pegasus tar sands pipeline ruptured and released as much as 7,000 barrels of diluted bitumen into Mayflower, Arkansas.  And as soon as the company realized that they had a problem, the cover up began.

From the outset, there has been a clear effort on behalf of Exxon to mislead and deceive the public about the effects that the tar sands spill will have on both the environment and public health.  As a result, the population in Mayflower is suffering at an unprecedented rate from mystery illnesses that can be linked back to exposure to tar sands crude.

Just like BP during the Deepwater Horizon oil gusher, Exxon attempted to deceive the public about how much oil had actually been spilled.  The company claimed that the amount was somewhere between 3,000 and 4,000 barrels.  But a report by Inside Climate News, based on numbers from the U.S. EPA, said that the actual number was closer to 7,000 barrels.  However, the EPA refused to correct Exxon’s numbers and did not include the agency’s own estimates in their press releases, instead choosing to parrot the bogus numbers asserted by Exxon.

That was just the beginning of Exxon’s plan to mislead both the public and the federal government.  The major problem the company knew it would face would be the health impacts on residents, so Exxon has done everything in its power to prevent the truth from leaking out.  (Those kinds of leaks are easier to prevent.)

Legal Headaches Begin For Exxon Over Pegasus Pipeline Rupture

Residents in Mayflower, Arkansas, the site of the recent Pegasus tar sands pipeline rupture, have filed suit against pipeline operator Exxon for health issues and property damage that have arisen since the spill.

Those affected by the pipeline’s spill have complained of numerous, though mild, health problems including headaches, nausea, and breathing difficulties.  While these symptoms are relatively mild, it should be noted that it has only been a month since the spill, and more severe problems are likely to creep up in the coming months.

The main concern is that the neurotoxins and carcinogens within the tar sands, particularly those contained in the diluted bitumen (dilbit), will plague the residents for years to come.

As Their Oil Floods Arkansas Neighborhoods, Exxon Wins National Safety Award

Isn't this the definition of ironyThe National Safety Council (NSC) honored Exxon Mobil with an award for “comprehensive commitment to safety excellence” at the same time that Exxon's Pegasus pipeline spewed an estimated 84,000 gallons of tar sands crude through the yards of residents in Mayflower, Arkansas. 

From The Huffington Post:

“It is evident that ExxonMobil is committed to excellence in safety, security, health and environmental performance,” said NSC president Janet Froetscher, who presented the award to ExxonMobil CEO Rex Tillerson. “The Council is honored to recognize ExxonMobil with the Green Cross for Safety medal. This organization is a wonderful example of the role corporations can play in preventing injuries and saving lives.”

Not only should the recent spill have caused the NSC to hesitate about giving the company an award for outstanding commitment to safety, but the company’s resolve to clean up their disaster has also been called into question.

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