ExxonMobil to pay $5 million to settle Ark. suit

By Shaun Zinck | Apr 24, 2015

Case stems from 2013 crude oil spill from Pegasus Pipeline in Mayflower, Arkansas

Arkansas Attorney General Leslie Rutledge   Arkansas Attorney General

ExxonMobil Pipeline Company will pay more than $5 million to settle a lawsuit with the state of Arkansas and the federal government over allegations it violated the Clean Water Act and other state environmental laws, Attorney General Leslie Rutledge said on Wednesday.

The settlement stems from a March 29, 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas. Carrying Canadian heavy crude oil from Illinois to Texas, the pipeline ruptured in the Northwoods neighborhood of Mayflower. Approximately 134,000 gallons of oil flowed through the neighborhood, contaminating homes and yards, and entering nearby waterways. 

As part of the deal, ExxonMobil will pay $3.19 million in federal civil penalties and will work to improve pipeline safety measures. Additionally, the company will pay $1 million in state penalties, another $600,000 that will go toward water quality-based supplemental environmental projects and $280,000 in attorneys' fees.

“This consent decree is a critical victory for the state and the Mayflower community," Rutledge said. "ExxonMobil was responsible for the damage to the environment and for disrupting lives of Arkansans. Today, ExxonMobil is being held accountable for the estimated 134,000 gallons of oil that flowed out of the ruptured pipeline.”

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