Boston, MA 08/27/2014 (wallstreetpr) – According to a statement of Department of Justice and Environmental Protection, the pipeline company of Exxon Mobil Corporation (NYSE:XOM) has agreed to pay the penalty levied on it. XOM was charged with $1.4 million for violating the clean water act. The alleged violation is connected with the North Line pipeline of the company which is situated near Torbert, La.
What does XOM management have to say about the matter:
When reporters asked Exxon Mobil Corporation (NYSE:XOM) management to comment on this issue, it said that it had entered into a consent decree with Environmental Protection Agency. The main objective of it was to resolve the claims levied by the department on Exxon Mobil Corporation (NYSE:XOM)’s pipeline without giving air to litigation between both the parties.
What was the issue:
As per the reports made public by the agency, ExxonMobil Pipeline Co. broke the set guidelines and discharged around 2,800 barrels of crude oil in the surrounding area and went into an unnamed tributary that was connected to Bayou Cholpe. The EPA and Justice Department said that Exxon Mobil Corporation (NYSE:XOM) was trying to complete cleanup actions. The company spent a significant amount to replace the segment of ruptured pipelines and responded against the oil spill; hence $1.4 million penalty was in addition to that amount. Oil spilling in the public water storage can directly affect the environment. It puts an adverse effect on the people as well in relation with health issues.
According to Sam Hirsch, Acting Assistant Attorney General for the Natural Resources and Environment Division of the Justice Department, “Oil splitting in the open water reservoirs can affect the health of people badly.” The settlement in this issue has strengthened the government’s initiative of enforcing tight guidelines on oil spilling in the open air. It has sent a strong message to all those who are into same business and conducts same kind of activities without giving it a thought that their carelessness can be harmful to the environment, as well as people.
