Some of the largest oil companies, including Citgo, Sunoco, BP, Royal Dutch Shell, Conoco Phillips, Chevron, Valero, and Marathon Oil have agreed to pay out nearly $424 million to settle a lawsuit brought by over a hundred public water companies. They will also pay for 70 percent of future cleanup costs over the next 30 years. Companies who refused the deal include Exxon Mobile, who has seen record profits over the last several years.
The gasoline additive methyl tertiary butyl ether, better known by its acronym MTBE, has allegedly contaminated drinking water supplies across the nation. The plaintiffs include water systems in over 15 states, including New York and California. The suit claims that the chemical additive contaminated groundwater and lead to the drinking water becoming “unpalatable,” and tasting like turpentine. It also caused cancer in lab rats, according to the Environmental Protection Agency.
MTBE was originally added to gasoline in 1979 to increase octane levels, but it became more widespread in the 1990s after the Clean Air Act of 1990. The Clean Air Act mandated its use in cities to reduce smog and pollution. Fuel burns more thoroughly when MTBE is mixed with gasoline. However, it was found to contaminate the groundwater when it was put into use. It has since been banned in 23 states.
Oil companies have been looking for another additive to use in place of MTBE. This has lead to the use of ethanol as a replacement.
Defective Product
Oil companies have fought hard to avoid paying penalties for cleanups, claiming they were forced to use MTBE. It is estimated a total cleanup will cost tens of billions of dollars. A lawyer representing Chevron and Shell has noted that the settlement does not claim MTBE is a defective product, and that the oil companies “are prepared to vigorously defend the product.”
A lawyer for Exxon says that the company has no plan to settle, and states, “When [Exxon] engages in conduct that injures people, it pays recompense for that. In all these cases, our conduct did not cause injury, or cause damages. Our conduct was lawful.”
Although this might be Exxon’s official line, the lawsuit contends that oil companies continued to use MTBE even though they knew there were health and environmental risks posed by the chemical.
There have been hundreds of lawsuits brought against oil companies and their use of MTBE since the 1990s. If this deal is approved, it will be the largest settlement regarding the chemical to date. In 2003 the Republican-led Congress tried to shield MTBE manufacturers from litigation with a provision, but failed due to strong opposition.
The case will go to trial in New York this September.
Though MTBE has not been ruled a defective product by any court in the land, if you feel you or a loved one has suffered injuries due to contaminated groundwater, please contact an experienced injury lawyer in your area to see if you have a claim.
