Arkansas Oil Spill Damages Exceed $70M: ExxonMobil

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ExxonMobil estimates that the March oil spill in an Arkansas subdivision has caused more than $70.5 million in damages for the company, according to an updated accident report submitted to the federal Pipeline and Hazardous Materials Safety Administration.

Exxon’s pipeline ruptured March 29, spilling thousands of barrels of oil in the Mayflower community about 30 miles northwest of Little Rock.

Exxon spokesman Aaron Stryk said the damage total does not include the purchase of subdivision homes, which the company has offered to purchase based on appraisals from before the oil spill.

“These are costs related to cleanup and remediation,” Stryk said.

Property records show that Exxon has so far purchased 20 of the subdivision’s 62 houses. Three of the purchased houses, all within yards of the rupture site, have been demolished due to oil beneath their foundations.

According to the accident report, the cost of the emergency response to the spill was estimated at $58.8 million, with environmental remediation costs put at $7.5 million.

The estimated cost of the company’s property damage and repair was placed at $1.2 million. The cost of the lost commodity – Canadian crude oil – was put at $300,000.

“Other costs,” including expenses for temporary housing and living expenses for spill-affected residents, were estimated at $2.7 million.

The Pipeline and Hazardous Materials Safety Administration has recommended $2.6 million in civil penalties against Exxon, finding nine probable violations of pipeline safety regulations.