Posted by Keith Cleary.
A lawsuit has erupted between Exxon Mobile and the state of New Jersey, particularly two industrial sites in New Jersey, Union and Hudson counties, according to the New York Times (Sullivan). The lawsuit, “which has been filed in 2004 and litigated by four administrations, is a $8.9 billion dollar lawsuit.” (Sullivan). The lawsuit is about the contamination that Exxon left on the marshes and forestland, and New Jersey is willing to pay $250 million dollars to clean up the 1,500 acres of petroleum contaminated fields. The $250 million dollars that Exxon offered to pay is not nearly enough to pay the amount it would actually take to clean the fields.
The amount that Exxon offered to clean up the fields, “infuriated environmentalists and a state lawmaker, after experts determined that it would cost billions to clean up the properties in northern New Jersey.” (Sullivan). In particular, the areas that the lawsuit covers are the facilities of the Bayonne and the Bayway sites, where surprisingly, the use of chemical production and petroleum refining goes back to a hundred years. Those years of spills also contributed to the contamination of the lands. “A report compiled for the state by Stratus Consulting of Colorado determined that it would take $2.5 billion to clean the site up, and an additional $6.4 billion to restore enough wetland and forestland.” (Sullivan).
Many people are questioning why the state decided to settle for such a low amount of money. Debbie Mans, head of NY/NJ Baykeeper, said, “I think it’s criminal to settle so low.” (Sullivan). Settling an almost $9 billion dollar lawsuit with $250 million is by far criminal. It is like paying $500 dollars for a $250,000 Ferrari. However, along with making the state accountable for the cleanup of the area, they were trying to “reimburse taxpayers for the years of lost use—the same way a victim of a car accident can seek lost employment wages from the responsible driver.” (Sullivan). So, not only are they trying to make up for the damages but also lost time.
There was also speculation about donations made from Exxon to the Republican Governor’s Association while Christie was chairman of the organization. “The Exxon Mobile Corporation contributed more the $500,00 to the association in 2014 during Christie’s tenure, and $200,00 in 2013.” (Sullivan). Even though all of these contributions were made, apparently none of it had anything to do with Christie being chairman. With the small settlement, it was called into question what it would be used for. Prior to this, Christie’s administration used $130 million of a $190 million settlement with a Passaic River polluter to the state’s general fund.
Keith is a business law student at Montclair State University, Class of 2017.