Exxon Mobil is fined $2.63 million

By Money Times

Oct 04, 2015 10:50 PM EDT

The United States court finally comes out with the verdict regarding Exxon Mobil Corp oil spill in 2013. The fine was issued by the U.S. pipeline safety office ordering the oil giant to pay a total of $2.63 million for spilling the crude oil in Arkansas residential Area.

Reuters reported that the 20 inch Pegasus pipeline which runs from Illinois to Texas had cracked and spilling all the crude oil. It is estimated that around 3,190 barrels of oil spilled in the Mayflower, Arkansas neighbourhood that day.

According to the Pipeline and Hazardous Materials Safety Administration report, Exxon Mobil violated around nine regulation that lead to the pipes to rupture. According to ABC News, the agency's spokeswoman, Artealia Gillard said that the defect on the pipe which has been there for a long time without treatment intensified causing the rupture.

Besides paying the penalty, Exxon Mobil also has been ordered to improve its work. Regulators said that the company will have to come out with a better solution to reduce the risk of contamination whenever a pipe rupture in the future. The company was also required to perform a scheduled maintenance on all of its pipes in the future according to the rules required by the Pipeline and Hazardous Materials Safety Administration Agency.

Exxon Mobil might be given 30 to 150 days by regulators to perform all the task required by the regulation. Failure to complete it will result in a fine of nearly $200,000 per day until the task is completed. Yahoo News said that the case is considered closed when Exxon Mobil has paid the penalty and the regulation agency is satisfied with the work done by Exxon Mobil as required by them.

Exxon Mobil is given 20 days to remit the penalty according to the U.S law and the company had told reporters that they received the letter and will act accordingly. This is not the first case for the company as the Exxon Mobil pipeline company had committed 12 offenses regarding its piping works within five years.

Previously, a federal court had released fine to Exxon Mobil in August asking the company to pay a sum of $5 million settlement agreement. The fine required Exxon Mobil to pay $3.19 million to the federal government and another $1.9 million to Arkansas as the oil spill had affected the life of Arkansas resident. 

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