1
http://www.corporatewatch.org.uk/profiles/oil_gas/exxon_mobil/Exxon_Mobil.r
tf
The Company
ExxonMobil and Esso UK
Industry Areas
Worldwide
The main activities of the ExxonMobil Group are exploration, production,
transportation and sale of crude oil and natural gas as well as the manufacture,
transportation and sale of petroleum products.
The group also manufactures and markets petrochemicals and participates in coal and
minerals mining, and electric power generation.
In 2000, 82% of the revenues came from refining and marketing; 10% from
exploration and production; 8% from Chemicals, 8% and other revenues were
nominal.
iUK
Exploration and production is the largest business area of Esso in the UK. However,
most of it is done as joint ventures with Shell, with Shell as the operator, so Esso isn’t
very visible. Compared to Exxon globally, the downstream and chemical part of their
operations are smaller, 5% of total. Esso UK is the market leader in retailing and has
the biggest refinery in the UK.
Market share / importance
Worldwide
Exxon is the biggest not state owned oil and gas company in the world. According to
the Time & Fortune Group's 2001
revenue, it is the biggest corporation.
Petroleum is mostly sold through Exxon’s/Esso’s service stations of which they have
45,000 in 118 countries. Aviation fuel is sold at more than 700 airports in 80
countries. ExxonMobil Marine Fuels serves more than 300 ports in 70 countries.
Fortune Global 500 list of the largest companies byii Worldwide it employs over 100,000 people.iiiUK
Esso is the biggest petrol retailer in the UK with 1620 stations, of which 878 are
company owned. Around 70% of the population live within a mere two miles of an
Esso petrol station. According to Esso, their Snack ‘n’ Shop chain (part of their petrol
stations) is the largest chain of shops in the oil industry.
Esso produce 10% of UK oil and gas, while over 15% of all oil products used in
Britain come from their refinery in Fawley. As for gas, Esso supplies almost 9% of
the total gas used by UK consumers.
Esso employs about 2800 people. Added to that amount is the significant number
employed by subsidiary companies and contractors working on Esso sites and
projects.
History
2
Worldwide
[This is brief summary and does not go into the history of the different ExxonMobil
companies]
The history of Exxon and Mobile is that of a true corporate giant. It started when John
D. Rockefeller and partners formed the Standard Oil Company (1870). By 1878
Standard Oil controlled 95% of the US refining capacity
achieved by swallowing all competitors, and getting secret rebates from oil and
making “drawback” agreements with the railroad
were indicted for violating state anti monopoly laws. Standard Oil was not convicted,
but this marked the beginning of several attempts to curb its power.
In 1882 the Standard Oil Trust was formed. It was the first trust ever formed and was
constructed to circumvent Ohio laws restricting ownership of out of state companies.
In 1890 the Sherman Antitrust Act was passed largely in response to Standard Oil’s
monopoly. The U.S. Supreme Court finally broke up the Standard Oil trust in 1911
into 34 different companies. The ownership group however, stayed largely the same.
Two of the spin-off companies were Jersey Standard and Socony, the chief
predecessor companies of Exxon and Mobil respectively. Over the years the two
companies spread their interests to all over the world.
iv. This had largely beenv. In 1989, Standard Oil officialsviDuring the 1930s when Walter C. Teagle was head of Standard Oil, the company
forged close ties with I.G. Farben, a firm that supported the Nazis and used
concentration camp labour. Charles Higham (a former New York Times writer and
biographer) writes in his book
showed a marked admiration for Germany’s enterprise in overcoming the destructive
terms of the Versaille Treaty. His lumbering stride, booming tones, and clouds of
cigar smoke became widely and affectionately known in the circles that helped
support the rising Nazi Party’
company [Jersey Standard and Socony-Vacuum] beefed up refining output to supply
the Allied war effort.’
Trading With the Enemy: ‘From the 1920s on Teaglevii. Exxon Mobil’s website prefers to describe how ‘EachviiiIn 1931 Socony purchased assets of Vacuum Oil and changed its name to Socony-
Vacuum. Socony-Vacuum became Socony Mobil Oil Co. in 1955 and, in 1966,
simply Mobil Oil Corp.
Jersey Standard changed its name to Exxon Corporation in 1972 and established
Exxon
affiliated companies continued to use the
In the 1970s, Exxon, Mobil and other companies escalated exploration and
development outside the Middle East - in the North Sea, the Gulf of Mexico, Africa
and Asia.
as a trademark throughout the United States. In other parts of the world itsEsso trademark.ixThe biggest public scandal to hit Exxon so far came with the Exxon Valdez oil spill in
1989 (see Case Study and Corporate Crimes below).
In 1998, Exxon and Mobil signed a definitive agreement to merge and form a new
company called Exxon Mobil Corporation. "This merger will enhance our ability to
be an effective global competitor in a volatile world economy and in an industry that
is more and more competitive," was the comment of Lee Raymond and Lou Noto,
chairmen and chief executive officers of Exxon and Mobil respectively. After
shareholder and regulatory approvals, the merger was completed in November 1999.
xUK
Esso started as the Anglo-American Oil Company in 1888, producing oil for kerosene
lamps. It was only in 1951 that they became known as Esso. Following the merger of
Exxon and Mobil in December 1999, it is now a part of the Exxon Mobil Corporation.
3
Esso has now finalised an alliance with Tesco (the biggest grocery chain in the UK,
and possibly the worst one
operation.
xi). Several co branded petrol stations are already inProducts Projects
Products
The core of Exxon Mobil’s business is oil and gas. Petroleum is mostly sold through
Exxon’s/Esso’s service stations. Aviation fuel is sold at airports, and ExxonMobil
Marine Fuels serves ports.
Exxon Mobil is the world’s largest non-governmental marketer of equity natural
gas
It is also the world’s leading marketer of finished lubricants, using the brand name
Mobil
Exxon Chemical products include plastics, oriented polypropylene film, synthetic
rubber, fluids, plasticizers, basic chemical building blocks such as ethylene, ethylene
glycol, propylene and paraxylene, fuel and lubricant additives and synthetic lubricant
base stocks
Projects
Oil and gas exploration all over the world. Coal extraction and mining on two
continents.
xii.xiii and the world’s largest wholesaler of heliumxiv.xv.Who, where, how much?
Worldwide
Exxon Mobile conducts business in almost 200 countries worldwide.
information on the different ExxonMobil companies and affiliates, see
xvi Forhttp://www.exxonmobil.com/affiliate/
divided up into upstream, downstream, chemical and coal & mineral
, or look at the map of worldwide operationshttp://www.exxonmobil.com/opsmap/index.html
The corporation’s main office is in Irving, Texas, USA.
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, TX 75039-2298
Phone: (972) 444-1000
Fax: (972) 444-1350
Exxon Chemical
13501 Katy Fwy
Houston TX 77079
Phone: (800) 231-6633
Exxon Coal & Minerals
2401 S. Gessner
Houston TX 77063
Postal address: PO Box 1314, Houston, TX 77251-1314
Phone: (713) 978-5333
.Fax: (713) 978-5404
4
Exxon International
200 Park Ave
Florham Park NJ 07932
Phone: (201) 765-7000
UK
You can find Esso’s major locations on an interactive map on their web site
http://www.esso.com/eaff/essouk/glance/britain.html
Leatherhead, West London, Abingdon, Fareham, Fife, Fawley and Purefleet.
See below for descriptions of some of the places.
Leatherhead
Leatherhead is the main office, and is the HQ of Esso UK plc, Esso Exploration &
Production and Esso Petroleum Company. Up to 1000 staff work there
purpose built complex of offices, used initially for administrative functions when the
head office used to be at Victoria Street. Based here are sales & marketing, IT, gas,
some of human resources, logistics, some of exploration, some of finance.
Exxon Mobil House
Ermyn Way
Leatherhead
SURREY
KT22 8UX
Phone: (01372) 222-000
Fax: (01372) 222-424
London offices
Mobil Court in London is HQ of UK upstream units (Mobil North Sea, Esso
Exploration and Production, Mobil Gas Marketing) and of ExxonMobil International.
Trade journal Lloyds List describes its role as a “centre of excellence” responsible for
European and African upstream operations
upstream staff in London
The London office is described as “European upstream headquarters”. The finance
division is based there (deals with internal finance)
3 Clements Inn
London
WC2A 2EB
. Their main locations are inxvii. It is axviii. Prior to the merger, Mobil had 900xix.xx.West London Terminal, Heathrow
Fuels Customer Service Centre, Central Operations Group and Senior Management
are based here.
Fareham, Hampshire
Exxon Chemical’s Head Office, close to Southampton and the M27.
ExxonMobil Chemical ltd
P.O. box 122
4600 Parkway
Solent Business Park
Whitley
Fareham
5
Hampshire
PO15 7AP
Fawley
Situated on the Solent near Southampton is Fawley, Britain’s largest refinery (uses as
much electricity as Southampton does
Major process units at Fawley include: 3 atmospheric + 3 vacuum distillation units, a
fluid catalytic cracking unit, a resid finer, a polymerisation plant, 2 powerformers, 5
hydrofiners, 2 sulphur extraction units, a lubricating oil manufacturing complex, an
isomerisation unit and a bitumen plant
Crude oil arrives in 80,000 tonne tanker ships
berths and 4 inshore berths. 2,500 ship movements per year (most of these taking
products away)
Southampton port per year, mostly for or from Fawley
from the North Sea (sweet – low sulphur), half from the Middle East (sour)
Exxon Chemical has a chemical manufacturing complex at Fawley, producing
700,000 tonnes of chemicals per year
solvents, butyl and halobutyl rubber, lubricating oil, fuel oil additives, higher olefins
for internediaries for the vinyl and plastics industries. It also produces speciality
chemicals for oil exploration, extraction and refining industries
exported – many to Exxon Chemical plants in Europe. Chemical products for UK
markets go first by ship to two terminals at Purfleet or one at Immingham
600 work at Fawley for Exxon Chemical
Last year a combined heat and power plant (CHP) was set up at Fawley. It produces
135MW of electricity, and 150 tonnes of steam per hour, which is fed back into the
refinery. The site is on Esso land, but the plant is owned by Cogen, National Power’s
CHP subsidiary, and is operated by Esso employees
Fawley
Southampton
SO45 1TX
Phone: (01703) 896712
Mossmoran plant
Mossmoran is fed directly from the North Sea, via St Fergus terminal. Its products are
distributed by pipeline to UK markets or by ship to Europe. 250 employees on
Mossmoran site
Purfleet Lubricants Plant
Responsible for manufacture, packing & distribution. Blends base stocks, which come
by ship from Fawley. It is also a major distribution terminal for fuels and other
products. Leading brands are Mobil 1 and Esso Ultron. Over 400 different types of
lubricants are blended at Purfleet for industry
Call centre, Manchester
Due to open in the summer, at Salford Quays, with 300 staff. Dealing with enquiries
from retail, wholesale and industrial customers across Europe
Aberdeen office
The Mobil North Sea office in Aberdeen has been kept after the merger, but with a
reduction in staff numbers from the former 400
xxi).xxii.xxiii. The Marine Terminal has 5 deepseaxxiv. More than 25 million tonnes of oil and oil products pass throughxxv. About half of the inputs arexxvi.xxvii. It produces ethylene, butylenes, butadiene,xxviii. About 80% isxxix. Aboutxxx.xxxi.xxxii. 50% owned by Shell Chemicals UKxxxiii.xxxiv.xxxv.xxxvi.6
The Distribution network
ExxonMobil claims to operate the largest underground pipeline network in the
UK
terminals or airports (including Heathrow + Gatwick). Short pipelines feed local
power stations and petrochemical works
terminals in UK and Europe, and just 5% by road.
There are distribution terminals at West London (near Heathrow), Purfleet,
Avonmouth, Birmingham, Nottingham, Hythe (near Fawley) and Manchester. West
London is the biggest terminal
Esso also shares a terminal in Plymouth with Conoco (Mayflower Distribution
Terminal) and one in Belfast with BP (Belfast Fuels Terminal)
Esso has its own fleet of 100 road tankers
petrol stations and to industrial customers. Esso also uses contractors for this.
Garages get their fuel from the nearest refinery – whichever company owns it, so if
you watch tankers coming out of Fawley, you will see all company liveries. When
Fawley was blockaded last year, The Automobil Association said half the petrol
stations on the south coast could be affected
the assertion on Esso’s website that 80% are supplied from Fawley – noting that the
new ultra low sulphur gasoline from Fawley was being sold at 80% of Esso’s petrol
stations, and the remaining 20% weren’t supplied from there
xxxvii: 1,200 km in total. 85% of Fawley’s products leave by pipeline to distributionxxxviii. 10% leaves by ship, taking products toxxxix.xl.xli, which take the products from terminals toxlii. But a report in Octane Week confirmsxliii.Structure / Ownership
Major shareholders
Top Institutional Holders of Exxon Mobil
FMR Corporation (Fidelty Management & Research Corp)
Barcleys Bank Plc
Morgan (J.P.) Chase & Company
State Street Corporation
Mellon Bank, N.A.
Vanguard Group, Inc.
Putman Investment Management, Inc.
Taunus Corporation
TIAA Cref Investment Management, LLC
Citigroup Inc.
Top Mutual Fund Holders
College Retirement Equities Fund-Stock Account
Fidelity Magellan Fund Inc
Vanguard Index 500 Fund
Fidelity Growth And Income Portfolio
Putnam Fund For Growth And Income
AXP New Dimensions Fund
Fidelity Contrafund Inc
Vanguard Institutional Index Fund
Fidelity Puritan Fund Inc
Washington Mutual Investors Fund
xliv:xlv:7
Board of Directors Exxon Mobil
xlviThe board currently is comprised of fifteen directors, eleven of which are nonemployees.
Lee R. Raymond
Chairman of the Board of Directors and Chief Executive Officer
Eugene A. Renna
Senior Vice President
René Dahan
Senior Vice President
Harry J. Longwell
Senior Vice President
Michael J. Boskin
T.M. Friedman Professor of Economics and Senior Fellow, Hoover Institution,
Stanford University
William T. Esrey
Chairman and Chief Executive Officer, Sprint Corporation [a global
communications company integrating long distance, local and wireless
communications services and one of the world’s largest carriers of Internet
traffic]
Donald V. Fites
Retired Chairman and Chief Executive Officer, Caterpillar Inc. [manufacturer
of construction, mining, and agricultural machinery and engines]
Charles A. Heimbold, Jr
Chairman and Chief Executive Officer, Bristol-Myers Squibb Company
[manufacturer of consumer products and pharmaceuticals]
James R. Houghton
Chairman of the Board Emeritus, Corning Incorporated [communications,
advanced materials and display products]
William R. Howell
Chairman Emeritus, J.C. Penney Company, Inc. [department store and
catalogue chain]
Helene L. Kaplan
Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP [law firm]
Reatha Clark King
President and Executive Director, General Mills Foundation; Vice President,
General Mills, Inc. [manufacturer and marketer of consumer food products]
Philip E. Lippincott
Chairman of the Board, Campbell Soup Company [global manufacturer and
marketer of high quality, branded convenience food products]; Retired
Chairman and Chief Executive Officer, Scott Paper Company [sanitary paper,
printing and publishing papers and forestry operations]
Marilyn Carlson Nelson
Chairman and Chief Executive Officer, Carlson Companies, Inc.; Co-Chair,
Carlson Holdings, Inc. [travel, hotels, restaurants and marketing services]
Walter V. Shipley
Retired Chairman of the Board, The Chase Manhattan Corporation and The
Chase Manhattan Bank [banking and finance]
8
Executives
Lee R. Raymond Chairman of the Board and Chief Executive Officer
E. G. Galante Senior Vice President
R. W. Tillerson Senior Vice President
H. J. Longwell Executive Vice President, Director
E. A. Renna Executive Vice President, Director
R. Dahan Executive Vice President, Director
M. E. Foster President, ExxonMobil Development Company
F. A. Risch Vice President, Treasurer
D. D. Humphreys Vice President, Controller
C. W. Matthews Vice President, General Counsel
T. P. Townsend Vice President of Investor Relations, Secretary
P. E. Sullivan Vice President and General Tax Counsel
H. R. Cramer Vice President
K. T. Koonce Vice President
S. R. McGill Vice President
S. D. Pryor Vice President
D. S. Sanders Vice President
J. S. Simon Vice President
The two Senior Vice Presidents, the three Executive Vice Presidents and the Chairman and CEO, L. R.
Raymond, constitute the Corporation's Management Committee.
Principal directors in the UK
Esso UK plc
Ansel Condray (Chairman)
Ansel Condray helped Bush to draft the voluntary Clean Act Programme for Texas
when Bush was governor there in 1997 (see also Links with Government).
xlvii:xlviiiTook over from Keith Taylor, 26/2/00. Taylor was a very public figure, both in the
industry and outside it – President of Institute of Chemical Engineers, vice president
of the Institute of Petroleum, council member of CBI, Business in the Community and
the Institute of Business Ethics. (See also influencing Research and Education). He
was awarded a CBE in June last year, but died of cancer in September
SC Spancake (Finance Director)
SC Polkey (Fuels Marketing)
D Carr (Logistics & Refining)
JV Genova (International Gas Marketing)
RG Bellis (Exploration)
All executive directors of Esso UK plc (all male).
Condray, Genova and Bellis all have Europe-wide roles in ExxonMobil International.
xlix.lOther directors:
SBL Penrose (Finance Director, Esso Petroleum Co Ltd, Esso Exploration &
Production UK Ltd, Mobil Gas Marketing Ltd)
liME Clifton (Mobil Gas Marketing)
liiJohn Cousins (Executive vice president, ExxonMobil International Ltd).
liiiExxonMobil Chemical
livMJ Lane (Chairman)
RH Coleman
DJ Hartgerink
9
ExxonMobil Aviation International
lvJAC Bell
E Biriotti
RM Cooper
IC Downie
Subsidiaries
Worldwide
ExxonMobil has numerous functional and service organisations. One example is
ExxonMobil Development Company, responsible for overall stewardship of project
development and drilling activities for the Corporation's worldwide upstream
operations. There is a whole range of other companies recognisable by Exxon, Mobil
and / or Esso name. Some of the companies are not so easily recognisable by name,
like Imperial Oil Limited, Monetary Coal Company, Compania Minera Disputada de
Las Condes Limitada (Chile), International Colombia Resources Corporation LLC
(intercor) (Colombia) etc.
To get an overview of some of ExxonMobil’s different companies, check out ‘Our
Activities’ at
comprehensive overview can be obtained by looking in the Who Owns Who directory
of North America (can be found in most bigger libraries).
UK
In the UK, the Esso business consists of the holding company Esso UK plc and two
operating businesses – Esso Exploration and Production UK Limited, and Esso
Petroleum Company Limited.
ExxonMobil has 6 main UK operating companies
Upstream:
Esso Exploration & Production UK Ltd
Mobile North Sea Ltd
Mobil Gas Marketing (U.K) Ltd
Downstream:
Esso Petroleum Company, Ltd
Mobil Lubricants UK Ltd
Chemicals:
ExxonMobil Chemical Ltd
There are also a number of ExxonMobil international business areas which are coordinated
from the UK, by the following subsidiaries:
ExxonMobil Aviation International Ltd
ExxonMobil Marine Fuels Ltd
International Marine Transportation Ltd
Mobil Marine Lubricants
http://www.exxonmobil.com/opsmap/index.html. The mostExxonMobil International Ltd (oversees the upstream operations within Europe and West
Africa)
ExxonMobil Sales and Supply Corporation
10
Esso Petroleum Company owns (100%) the following: Cleveland Petroleum
Company Ltd, Comma Oil & Chemicals Ltd, Dart Oil Company Ltd, Redline Oil
Services Ltd and Retail Petroleum Services Ltd. Also owns 74.9% of Mode Wheel
Property Ltd
lvi and 65% of Mainline Pipelines Ltdlvii.Influence
Lobbying Groups
ExxonMobil does extensive lobbying in Washington themselves. Before the merger
of Exxon and Mobil, the New York Times reported that Mobil and Exxon spent $5.3
million and $5.2 million respectively on lobbying.
ExxonMobil spent $11,695,800 on lobbying.
lviii In 1999 it was estimated thatlixExxonMobil spent $5.8 million on the following lobbying firms in 1999; Akin, Gump
et al, Cassidy & Assoc, Gardere & Wynne, Mobil Business Resources Corp, and
Swidler, Berlin et al.
lxBelow some of the groups that Exxon Mobil is a member of are listed and briefly
explained. This is just a very short list, and does not claim to be a comprehensive list
of the most important groups.
•
The oil industry’s think-tank, explains that its ‘most pressing issues revolve about
public perceptions and government policies toward our industry -- many of which
have international dimensions’
institute lobbies against any action on climate change that could be perceived as a
threat to the petroleum industry, and is extremely sceptical about the science
behind climate change. “[T]he debate is about whether enough is known about
climate change to warrant the lost jobs, higher consumer prices and a weakened
U.S. economy that would come with implementing the Kyoto Protocol, an
agreement which at best would make only slight progress toward solving climate
change”.
In 1998, Exxon helped API to plan its $ 7 million PR campaign to undermine
confidence in the scientific consensus about climate change.
member of the
American Petroleum Institute (API) www.api.orglxi, one of these issues being climate change. Thelxii ExxonMobil is a financial supporter of the API and sits on the board.lxiii The API is aGlobal Climate Coalition (see below).•
‘The USCIB advances the global interests of American business both at home and
abroad. It is the American affiliate of the International Chamber of Commerce
(ICC), the Business and Industry Advisory Committee (BIAC) to the OECD, and
the International Organisation of Employers (IOE). As such, it officially
represents U.S. business positions in the main intergovernmental bodies,…’.
US Council For International Business www.uscib.orglxivAfter Bush’s rejection of the Kyoto agreement the USCIB sent him a letter stating
‘[we] believe that the U.S. should move quickly to chart a farsighted path forward
within the UNFCCC process that will avoid the Kyoto Protocol’s unrealistic
targets, timetables and lack of developing country participation.’
lxv•
European Chemical Industry Council (CEFIC)lxvi www.cefic.beCEFIC actively lobby the EU and at UN climate negotiations for voluntary action as the
alternative to government regulation. CEFIC rejects absolute targets being imposed on the
chemical industry and threatens to, "relocate to cap-free countries," warning that the end result will
not help the environment and will bring massive job losses to the EU.
lxvii•
The Centre for European Policy Studies (CEPS)lxviii www.ceps.beThe Centre for European Policy Studies (CEPS) is a ‘think tank lobby’ group supporting corporate
interests in the EU. CEPS formed a working group on 'EU Climate Change Policy: Priorities for
COP-6' before the COP 6 meeting in Den Haag 2000. The group chaired by BP’s Barbara Kuryk
11
aims to steer the EU away from government regulation and towards voluntary initiatives and
market-based mechanisms. It also lobbies for binding CO2 reductions to include southern
countries.
•
Global Climate Coalition (GCC) www.globalclimate.orgA climate sceptic organisation, representing a diverse range of US businesses. The GCC argues
that ‘Unrealistic targets and timetables, such as those called for under the Kyoto Protocol, are not
achievable without severely harming the U.S. economy and all American families, workers,
seniors and children.’
lxixGCC received such heavy criticism that companies such as BP, Ford and Texaco decided to leave
it. Exxon however stayed a member until GCC decided that only trade associations were suitable
for membership.
lxxLinks with government
ExxonMobil
George Bush himself is an old Texas oilman. In 1977 he set up the oil company
Arbusto Energy (arbusto: Spanish for bush). The company was never very successful;
it changed name, went through a merger and was bought up. Bush left the oil business
in the early 1990s.
as governor let Exxon draft the "voluntary" emissions reporting system for Texas
lxxi His close ties to the oil industry were however visible when helxxii(this Clean Air Programme turned out to be utterly ineffective
In 2000, ExxonMobil gave $1.2 million to the Republican Party
Center for Responsive Politics, only Enron (a gas and electricity corporation) gave a
higher amount of political donations the same year (this makes ExxonMobil the
largest oil and gas donor).
lxxiii).lxxiv. According to thelxxvBush’s cabinet turned out to contain several persons with links and interests to the oil
industry and ExxonMobil. Some have very direct links, such as the under secretary of
economic affairs, Kathleen B. Cooper, also Chief Economist and Manager of the
Economics and Energy Division of ExxonMobil. Some are not direct links, like Dick
Cheney, secretary of state, a former CEO of Halliburton, who shows a predisposition
to share the views of the oil industry. The above and below examples are from
Multinational Monitor’s May 2001 issue (‘Bush’s Corporate Cabinet’).
•
Foundation, a right wing think-tank sponsored by among others ExxonMobil.
Elaine Chao, secretary of labor, was a distinguished fellow at the Heritage•
in ExxonMobil and has several economic interests in the oil industry.
Christine Whitmank, environmental protection agency administrator, holds stocks•
States Legal Foundation from 1979 to 1983. The firm was funded by among
others, Exxon, Amoco, Chevron and Ford. She is the national chair of the
Coalition for Republican Environmental Advocates (its steering committee
includes lobbyists from the car and oil industry).
Gale Norton, secretary of the interior, worked at the right wing law firm Mountain•
Brown Inc. (a Denver based oil and gas company), and has large financial
interests in several oil companies.
Donald Evans, secretary of commerce, whose former job was CEO for Tom•
Institute (a conservative think-tank, see lobby above) and is a director of Institute
for International Economics. Both are sponsored by ExxonMobil.
Paul H. O’Neill, treasury secretary, is a trustee at the American Enterprise•
Relations, and in the advisory committee of Institute for International Economics
and the Brookings Institute for Policy and Economic Programs. All three of these
are sponsored by ExxonMobil.
Robert Zoellick, U.S. trade representative, is on the board of Council on Foreign12
Among the president’s advisors you can also find connections to the oil industry.
Lawrence Lindsey, top economic advisor to the president, holds a chair at the
American Enterprise Institute, Diana Furchgott-Roth, staff chief to the Council of
Economic advisors, is a resident fellow at the American Enterprise Institute, and Nina
Rees, adviser to the vice President Cheney is a senior analyst at the Heritage
Foundation. Both organisations are sponsored by ExxonMobil.
Esso UK
The most politically engaged aspect of Esso was its former UK chairman and chief
executive Keith Taylor. He sat on the Cleaner Vehicles Task Force, and was involved
in various higher education policy roles. He was awarded a CBE for services to the oil
and gas industry at last summer’s Queen’s birthday honours.
Esso’s Trees of Time and Place initiative invited MPs to get involved. John Swinney
and Andrew Welsh both participated. Scottish Wildlife Trust is involved in coordinating
the initiative in Scotland. Paddy Ashdown and John Battle were early
joiners.
PR Companies and Greenwash attempts
‘ExxonMobil strives to be a good corporate citizen and a good neighbour wherever
we do business.’ – ExxonMobil’s homepage
lxxviExxonMobil likes to point out its great social responsibility and its contributions to
the environment. Information about who they sponsor can be found at
www.exxonmobil.com/community
sponsored, among them several lobby groups and right-wing/conservative think tanks.
The first sponsorship they mention is their support for tiger conservation. This is an
important part of ExxonMobil’s image, since the tiger is also the company’s mascot.
However, one of the greatest threats to the tiger could turn out to be loss of habitat
due to stress caused by climate change.
ExxonMobil also give a lot of support to education. Some of this sponsorship has
come under criticism for being more promotional material than educational material.
The Center for Commercial-Free Public Education writes: “Some teachers were
duped by Exxon's lesson plan about the healthy, flourishing wildlife in Prince William
Sound, Alaska, which showed beautiful eagles, frolicking sea otters, and sea birds in
their habitat. In reality, the program was a public relations vehicle designed to help
Exxon clean up its image after the Valdez oil spill.”
. They also list institutions that they havelxxviiBelow is a sample of the organisations that ExxonMobil supports (full list at
www.exxonmobil.com/community
).•
think-tank. Among other things, it has published the book The Bell Curve by Charles Murray &
Richard Hernstein, one of the most prominent racist books published. The book made “scientific”
claims that black people are less intelligent than white people.
The American Enterprise Institute for Public Policy Research (Washington, D.C.) is a conservative•
organisation that lobbies state legislators
The American Legislative Exchange Council (Washington, D.C.) is a right wing•
promotes climate sceptic ideas. Their homepage (www.co2science.org) blatantly
shows their aggressively anti climate science stance.
The Center for the Study of Carbon Dioxide and Global Change (Tempe, Arizona)•
promotes market solutions for economic and social problems.
The Citizens for a Sound Economy Educational Foundation (Washington, D.C.)•
is working against environmental legislation. It gives seminars that resemble free
luxury vacations for judges to promote their ideas.
Foundation for Research on Economics and the Environment, Bozeman, Montana,lxxviii13
•
The Heartland Institute (Chicago, Illinois) is an archconservative think tank.•
promoting “traditional American values”, free enterprise, a strong national
defence, and drilling in the Arctic wildlife refuge, among other things.
The Heritage Foundation (Washington, D.C.) is an ultra conservative organisation•
federal social welfare and questions the science behind global warming. Michael
J. Boskin (Member of the ExxonMobil board) is a Senior Fellow at the institute.
The Hoover Institution (Stanford, California) promotes its antipathy against•
welfare, medical and health spending, and for privatisation and deregulation of
environmental and consumer protection.
The Manhattan Institute for Policy Research (New York, N.Y.) argues for cuts in•
organisation challenging environmental regulation.
The Political Economy Research Center (Bozeman, Montana) is a conservativeInfluencing Research and Education
Worldwide
ExxonMobil invests more than $650 million per year on research and
development.
lxxixUK
Former Esso UK chairman and chief executive Keith Taylor, according to the Times,
personally championed Esso’s higher education support scheme and engineering
fellowships. He was visiting professor at Surrey University, member of Higher
Education Funding Council for England
Honorary Doctor of Engineering to Keith Taylor in early 1997, when he was joint
chair of the university's chemical engineering senior advisory group
lxxx. The University of Birmingham gave anlxxxi.Esso uses London Business School to train all graduate recruits, an absolute key to their corporate
culture.
All university applicants for the exploration division must attend 8-week summer work experience in
Leatherhead, during their last summer vacation. This summer programme has the “full support” of the
Natural Environment Research Council (NERC)
lxxxii.A few miscellaneous connections:
•
first year, declining over the following four, in return for which Esso expects
some of the fellow’s time. One of the Esso fellowships was awarded to Dr. David
Faraday at Surrey University, who had previously arranged industrial placements
for his students with Esso
Esso sponsors fellowships in chemical engineering - these are worth £6000 for thelxxxiii.•
Management at Aberdeen, was formerly Business Opportunities Group Manager
with Esso Exploration and Petroleum UK
Professor Graeme Simpson, the first Schlumberger Chair of Energy Industrylxxxiv.•
Esso), which underpins a communications skills module for chemistry
undergraduates
Heriot-Watt University has an Esso Teaching Resources Facility, (£15,000 fromlxxxv•
Scheme for a project to develop computer based teaching material
Loughborough University was awarded £8,600 by Esso Higher Education Supportlxxxvi.•
Engineering.
University of Wales, Swansea has an Esso Lecture Theatre in its Department of•
Management at the HEFCE (the Higher Education Funding Council for England),
John Avery, formerly of Esso Petroleum, went on to become head of Real Estate14
where he was responsible for a capital budget of £100m, leading HEFCE's work
in promoting private finance in higher education
lxxxvii.•
Dr AJ Hartley, the Mobil Lecturer in Production Geoscience; Dr Tim Reston, the
Mobil Lecturer in Structural Geology. There are also research fellows sponsored
by Mobil.
The Geology and Petroleum Geology at Aberdeen University - staff includelxxxviii:•
and Policy (CEPMLP), whose Assistant Director of the Centre Armando Zamora
previously worked for Mobil Oil
include Richard Beazley (President, Mobil CIS)
The University of Dundee has a Centre for Energy, Petroleum and Mineral Lawlxxxix. Part-time and honorary teaching staffxc.•
Mechanical Engineering students, and BP £1,500 to Chemical Engineering
students, both awarded at the start of the second year and renewable in the final
year
The Greenpeace International report called ‘Exxon Valdez – a case of corporate
virtual reality’ by Andrew Rowell explains how Exxon used 3 British academics to
help explain that Prince William Sound is just fine after the Exxon Valdez accident.
See case study below. The full report is available online at
At the University of Nottingham, Esso offers one bursary of £500 each year toxci.www.greenpeace.org/~climate/arctic99/reports/exxon2.pdf
CASE STUDY: The Exxon Valdez spill damage
After the grounding of the
flew three British scientists out to the scene to assess the damage: Prof Robert Clark
(Dept of Zoology, University of Newcastle-upon-Tyne), Dr Paul Kingston (Inst of
Offshore Engineering, Heriot-Watt University) and Dr Jenny Baker (consultant).
Clark, Kingston and Baker released a report in 1990, which argued that "The overall
impact of the oil spill on the environment in Prince William Sound and the Gulf of
Alaska is likely to be short-lived". For example, it claimed that "Animals may
accumulate petroleum hydrocarbons while their environment is oily, but they
subsequently purge themselves in a relatively short time and return to normal levels. It
is important to understand that oil is not like pesticides, mercury and other substances
that cannot be metabolised, cannot be excreted, and thus build up in the flesh"
In June 1990, Prof Clark said “Oil spills create a big mess. They cause short-term
damage, but the long-term effects are nil”
“The effects of the cleanup, coupled with the scouring action of winter storms, left the
shoreline largely free of oil by the spring of 1990.... There is evidence that [the]
remaining oil is neither toxic nor harmful”.
notes for example that in 1990 “sea otters are still abundant in the sound and, with
their high reproductive rate, can rapidly reverse whatever losses they sustained”. Of
murres (seabirds), Clark states that in the northeast Atlantic their population has
mushroomed despite losses from oil pollution, and he expects the same to be the case
in Prince William Sound (PWS).
.Exxon Valdez oil tanker off Alaska in March 1989, Exxonxcii.xciii. In a 1991 article, Clark observed thatxciv Looking at particular species, ClarkxcvBy contrast, the National Oceanic and Atmospheric Administration estimated in
autumn 1992 that 12% of the total oil spilled still remained in sub-tidal sediments, and
3% on the beaches.
Alaska, commented that "Four years after the spill, oil still remains trapped in mussel
mats in the inter-tidal zone, being picked up into the food chain"
Valdez Oil Spill State/Federal Trustee Council is now sponsoring a research team to
find out how much Oil is still left. During the summer 2001, the group could still
xcvi. Rick Steiner, an Associate Professor at the University ofxcvii. The Exxon15
easily find oil by digging 15 centimetres into the beach
Spill Trustees expect direct damage to wilderness to continue for decades
An overview of the scientific studies of sea otters reported that "By late 1991, three
findings indicated that chronic damages were limiting recovery of the sea otter
population in PWS: patterns of mortality were abnormal when compared to prespill
data, surveys showed no increase in abundance, and juvenile survival was low in oiled
areas of western PWS".
evidence of recovery of the sea otter population, which may take decades
number of breeding murres fell by up to 70%, and there was complete reproductive
failure in 1989, 1990 and 1991
the population to recover, if at all
Thus the views put forward by Baker, Clark and Kingston are not shared by all
scientists of marine pollution. In fact, the three are known as 'sceptics' with regard to
the ecological damage caused by oil spills (their main point being that oil spills'
effects are short-term, and do not significantly impact upon populations or ecosystems
in the longer term), and have written extensively on the subject since at least the early
1980s. Kingston is part of the Institute of Offshore Engineering at Heriot-Watt
University, most of whose work is for the oil and gas industry, and Kingston himself
"has worked on most major North Sea petroleum developments"
Because their views are 'friendly' is at least partly why Exxon chose these three to
assess the
Operations in Alaska, told an Institute of Petroleum conference in London that Exxon
had used British scientists because the American public would find a scientific
message more credible and more impressive if spoken in an English accent
xcviii. The Exxon Valdez Oilxcix.c According to the Trustees, by 1993 there was still little or noci. Thecii; the Trustees suggest that it may take a century forciii.civ.Valdez damage. But more cynically, Otto Harrison, Exxon's Director ofcv.Corporate Crimes
Politics and Globalisation
ExxonMobil support numerous right wing and conservative think tanks and lobby
groups (see ‘PR Companies and Greenwash’ and ‘Lobbying’ above for examples).
They promote everything from environmental deregulation to cuts in social welfare
spending. ExxonMobil is also a strong proponent of so called free trade
(globalisation).
Alaska's Arctic National Wildlife Refuge
‘[A]llowing environmentally responsible exploration of the Arctic National Wildlife
Refuge and prospective areas offshore and in the Rocky Mountains should be
priorities’ – H. J. Longwell Senior Vice President, ExxonMobil, February 13, 2001
cviThe Arctic National Wildlife Refuge is an ecologically sensitive area hosting
numerous species. The indigenous Gwich'in people, who rely on the Caribou herds
that breed there, are opposed to the development.
So far this area has been untouched by development. The oil industry however is
lobbying the congress to open up the refuge for exploitation. ExxonMobil supports
organisations like The Heritage Foundation that are working for the opening of the
refuge. The House of Representatives now support plans to drill for oil and gas in the
Arctic Wildlife Refuge. Before any drilling can commence, it still has to be approved
by the Senate. With Bush in the Whitehouse, it could be just a matter of time before
this small piece of vulnerable land loses its protection.
Climate Change
16
Exxon has been in the forefront of fighting any action on climate change. The tactics
have varied from denying the science, to denouncing the Kyoto Protocol, to playing
the developing world and the developed countries against each other. Exxon has and
continues to supporting lobby groups and think tanks working against action on
climate change or trying to undermine confidence in climate science. Examples
include The American Enterprise Institute and The Center for the Study of Carbon
Dioxide and Global Change. Exxon was also a member of The Global Climate
Coalition (see PR above for info on these three organisations). For information on
ExxonMobil’s sponsoring of climate sceptics, see ExxonMobil Emerges as a Major
Funder of Greenhouse Sceptics (March 2001) by Ross Gelbspan at
http://www.heatisonline.org/contentserver/objecthandlers/index.cfm?id=3645&metho
d=full
The two faced game they are playing can be exemplified by the way they render the
Kyoto protocol useless because developing countries have not committed themselves
to CO2 targets, while at the same time lobbying developing countries not to sign up to
any binding targets. The following quotes well exemplify this.
"If action is needed [on global warming], it should…include developing nations, since
they will account for most of the growth in greenhouse gas emissions." Lee Raymond,
Exxon's Chairman of the Board, open letter to Congress, May 8, 1997.
"[W]ork with us to resist policies that could strangle economic growth," Lee
Rayomond at the October, 1997 World Petroleum Congress in Beijing, urging
countries of the region to resist climate policies. He further stressed that economic
growth "will necessitate increasing, not curtailing, the use of fossil fuels."
ExxonMobil was also a major contributor to a $13 million U.S. advertising campaign
against the Kyoto agreement stating; "It's not global and it won't work."
.cviiIn 2001, ExxonMobil’s hard work seemed to have paid off: President Bush withdrew
the USA from the Kyoto agreement. To show their support for the Bush
Administration's decision, advertisements were paid for, stating: "Kyoto was too
much too soon. Its initial carbon targets would require massive reductions in energy
use within a few years, with further substantial reductions to follow. Political goals
were set without a sober assessment of economic and technical realities or public
toleration of major lifestyle changes. This was reckless given the central role played
by energy in all economies."
cviiiIn its attempts to counter the scientific evidence for climate change, ExxonMobil has
used outdated science and misrepresented scientific research. At the shareholder
meeting in May 2000, CEO Raymond used satellite measurements of the earth
temperature to prove that the world is actually cooling. However this study had
already been shown to be incorrect in the scientific journal Nature in 1998, due to the
satellite’s changed orbital. Taking the changing orbital into account, the data actually
shows a warming trend. The new revised data had been publicised in 36 newspapers
in the US. At the same AGM, Raymond also referred to temperature measurements in
the Saragasso Sea to discredit the climate science. Dr. Lloyd Keigwin, author of the
report, later claimed that ExxonMobil’s use of his research has been misleading and
that no conclusions about the validity of climate change could be made from his
research. ExxonMobil has also used the Saragasso example in misleading ads that it
placed in the New York Times under the headline “unsettled Science” (at
http://www.heatisonline.org/contentserver/objecthandlers/index.cfm?id=3442&metho
d=full
examples see How ExxonMobil is Misleading Shareholders, Policymakers and the
the “science” of their ad is taken to pieces). For more information on these17
Public about Global Warming
(
ExxonMobil sees no need to invest any of its huge profits into research into renewable
energies. This is “[b]ecause they are not as reliable or affordable as conventional
fossil fuels, renewables compete in niche applications, and hardly at all in
transportation fuels. In view of their technology limits and excess costs, which
prevented widespread deployment, a business decision was taken many years ago to
concentrate on our core energy and petrochemical businesses.”
to the US Department of Energy Outlook estimation that (non-hydro) renewables will
only contribute towards 3% of energy needs in 20 years time, as a reason for not even
trying to enter the renewables market.
reserves are however still considered a good investment by ExxonMobil. This even
though we already have more fossil fuels than we should burn if we are to mitigate
climate change.
http://www.campaignexxonmobil.org/learn/index.shtml), by Campaign ExxonMobil.cix ExxonMobil referscx Investment in finding new oil and gascxiFor the History of ExxonMobil’s attempts at to stop any action on climate change, see
Esso's Decade of Dirty Tricks to sabotage The Kyoto Protocol
http://www.stopesso.com/pdf/Dirty%20Tricks.pdf
Australia – watch this space for further developments!
.cxiiNear the Great Barrier Reef World Heritage Area, ExxonMobil owns 50% of the
Rundle oil shale deposit, through Esso Australia Resources Ltd (the other half is held
by Southern Pacific Petroleum and Central Pacific Minerals (SPP/CPM))
originally planed to commence oil shale mining there (oil shale releases oil when
heated and crushed). Greenpeace Australia claims that these developments would
have produced open cut mines, potentially created toxic run off. The final product
would have been a very carbon intense fossil fuel. However, in 1983/84 Esso decided
not to proceed, officially because the decline in world oil prices made it uneconomic,
but Esso still retained its 50% interest.
According to SPP/CPM's 2000 Annual Report Esso has paid all costs on the Rundle
deposit from 1 March 1985 and will do so "until construction of the first stage of a
commercial development commences"
costs associated with the Rundle deposit (which amounted to A$12 million in 2000
according to SPP/CPM's 2000 Annual Report) demonstrates a significant degree of
interest.
Esso’s partners at the Rundle deposit, Australian companies Southern Pacific
Petroleum/Central Pacific Minerals (SPP/CPM), are developers of the Stuart Oil
Shale Project, just south of the Rundle deposit. Greenpeace Australia is currently
campaigning against the development of the Stuart Oil Shale Project.
Europe
In 1998, a proposed EU-wide ban on PVC toys containing phthalates was dropped.
Phthalates are used to make PVC toys softer and more elastic, but several reports have
raised fears that they could have several detrimental health effects.
Exxon Chemical (producer of phthalates) and Mattel (toy manufacturer) opposed the
EU-wide ban. There is evidence suggesting that the U.S. government lobbying on
behalf of Mattel and Exxon, may have influenced the European Commission's
rejection of the proposed ban.
cxiii. Essocxiv. The fact that Esso are willing to cover allcxvPeru
18
ExxonMobil is preparing to explore for oil and gas in Candamo Valley and the
surrounding area (block 78), despite fears that developments could seriously damage
the ecosystem and its inhabitants. The area is one of the most biodiverse in the
Peruvian Amazon and lies close to the Bahuaja-Sonene National Park.
cxviWhen Shell explored for oil in the region in1985, they encountered previously uncontacted
Nahua Indians. Soon after 50-100 Nahuas died due to coming into contact
with ‘western’ diseases they had no immune defence against. When in 1996 Mobil
was poised to start searching for oil in a neighbouring valley (block 77), an area
inhabited by three uncontacted Indian peoples, they were faced with international
resistance. In 1998 Mobil decided to withdraw from the land.
Ecuador
Five Indian peoples (the Waorani, Quichua, Siona, Secoya and Cofan) have been
affected by the oil exploration of Exxon and other oil companies in the Ecuadorian
Amazon. The major negative impacts have been displacement of the wildlife that the
Indians depend on and pollution of the soil and water.
cxviiR
ussia
Presently three oilfields at Sakhalin (Sakhalin I, II and III) in the Okhotsk and Bering
Seas are being developed. Sakhalin I is run by ExxonMobil, SODECO of Japan,
Rosneft and Sakhalinmorneftegas of Russia and Sakhalin III involves ExxonMobil
and Texaco. All three developments work under extremely hard conditions. This has
lead them to claim that they must discharge toxic wastes in the sea despite
international best practice is to re-inject drilling wastes deep underground. This has
put half the world's remaining Pacific salmon, pollock and Kamchatka crab under
threat. Communities dependant on fishing, including native communities (the Koryak
and Itel'men people), have allegedly been silenced through their dependence on the
fish quotas of the pro-oil local government. The Sea of Okhotsk and Bering Sea is
also important habitat for grey whales, endangered stellar's sea lions and a large
variety of seabirds.
In June 1998 the Sakhalin Special Marine Inspection Division (a government agency)
filed a lawsuit for the illegal discharge of 3,500 tons of waste into the Okhotsk Sea
against the developers of Shakhalin I. The Sakhalin I consortium claimed that the
lawsuit was illegal. The matter seems to have been resolved by a letter to the office of
V. Danilov-Danilyan, Russian Minister of the Committee on the Environment from K.
Kuntz, Director of Exxon Neftegas: "You and I have met twice to discuss this issue
and both times you personally assured me that the actions of the Marine Inspection
Division are baseless and the suit ought to be recalled." Twelve days later the lawsuit
was suspended.
cxviiiNigeria
In January ’98 a broken Mobil's Idaho production platform leaked 40,000 barrels of
oil off the cost of Nigeria. The spill caused a 42-kilometre long oil slick that seriously
damaged fishing grounds and farmland. 61 affected communities formed the
Association of Mobil Spill Affected Communities to try to get rightful compensation
from Mobil. More than one year after the spill the association still didn’t feel that the
communities had been properly compensated and took direct action occupying 13
pipeline relay facilities in the Niger Delta as well as several barges and boats.
cxixMobil has also faced pressure, from among others its shareholders through
resolutions, over it long involvement in Nigeria. The regime in Nigeria received a
19
substantial amount to its budget through the foreign oil companies operating in the
country.
cxxChad - Cameroon
ExxonMobil is the operator of the ‘1-billion-barrel’ Chad Doba project (ExxonMobil
interest 40%).
Cameroon, where the oil would be exported to the west.
There is a lot of controversy surrounding the project. The pipeline would go through
fragile rainforest and the traditional homelands of the Baka and Bakola peoples,
indigenous communities of hunter-gatherers.
communities has been minimal, and set without consulting the locals. An
environmental impact assessment has been made, but the official Dutch Commission
on Environmental Impact Assessments claims that essential information is missing
and that from it one could neither asses the project nor its environmental
consequences.
The region is also politically highly unstable. Amnesty has documented massacres of
unarmed civilians in these regions for over the past two years. A 1999 United States
State Department report shows that the Chadian government has engaged in
indiscriminate human rights abuses. In March 1998, 100 unarmed civilians were
massacred by Chadian security forces in the oil-producing region, just six months
after troops killed 80 people in the same area.
Shell and Elf have pulled out of the proposed pipeline. The World Bank, however, is
continuing with plans to provide a US$90 million loan to the governments of Chad
and Cameroon to help pay for their stake of 15 percent. The International Finance
Corporations (IFC), which is the private sector lending arm of the World Bank, is
proposing to lend an additional US$150 million toward the project's
infrastructure.
cxxi The project would link oil fields in southern Chad to the coast ofcxxii The compensation offered to thecxxiiiIndonesia
ExxonMobil has been sued by the International Labor Rights Fund, on behalf of 11
villagers in Aceh, a province in western Indonesia, where ExxonMobil has a large gas
plant. The corporation is accused of being complicit in the human rights abuses
committed by the notorious Indonesian army guarding the area.
Villagers in the area have been victims of murder, torture, kidnapping and rape.
ExxonMobil’s part in these atrocities is claimed to have been supplying barracks used
by the military to torture prisoners and machinery like excavators that used to dig
mass graves.
cxxivMobil began operating the Arun gas fields in 1968 and has since then ‘contributed’ to
the annual budget of Suharto’s regime to the time of his downfall. After the merger of
Exxon and Mobil, the company took over the management of the gas field.
cxxvColombia
ExxonMobil has a 50% share in an opencast coalmine at El Cerrejon in the north of
Columbia through its 100% owned mining subsidiary Intercor (Anglo American Coal
Corporation Ltd, Billiton plc (based in London), Glencore International AG (Swissbased)
are other owners of the mine
(30miles long and two to three miles wide) and produces 15 million tons of coal
annually. The area of the mine is inhabited by the Wayuu Indians who have been
opposing bad practices at the mine since 1980. At the start 5000 indians were
employed but almost all of them were dismissed when the mine started operating two
cxxvi). The mine is the biggest in South America20
years later. In 1988 the last Indians were made redundant because of trying to
organise union activities.
cxxviiThe mine has had negative impacts on the grasslands on which the Wayuu Indians
depend. Indians have also suffered from respiratory diseases caused by coal dust and
heavy noise pollution.
cxxviiiIntercor has also shown cultural disrespect by removing Wayuu graves during the
construction of a railway connecting the mine and the port of Uribia. Intercor was
later forced by the Wayuu to rebuild the structures.
cxxixIntercor is now about to evict all residents of the Indigenous community of Tabaco, to
make way for the expansion of the mine. Residents are resisting and claim that the
relocation arrangements made would break up communities and not give people
sufficient funds to buy land to live on.
cxxxWorkers rights and safety
Esso UK began the process of union derecognition in UK refining and logistics by
derecognising its tanker drivers in 1991, followed by process operators at Fawley. The
rest of the UK onshore oil industry followed over the next 4 years, to great criticism
from the Transport and General Workers' Union.
cut many of its middle managers at Fawley
widely thought to be the major cause of the recent disastrous safety record of BP’s
Granagemouth refinery.
On September 25 an explosion at the Longford natural gas processing plant occurred
killing two workers, injuring eight and cutting off natural gas supplies to most of the
state of Victoria for two weeks. In July 2001 Esso was fined £715,000 for safety
violations and Justice Philip Cummins, at the supreme court of Victoria in Melbourne,
stated that the explosion was not an accident and sole responsibility lay with Esso.
The company was convicted last month of 11 charges under the Occupational Health
and Safety Act.
cxxxi In January 2000, Esso decided tocxxxii – a process known as delayering,cxxxiiiBelow is part of a list published in ‘The Dirty Four: The Case Against Letting BP
Amoco, ExxonMobil, Chevron, and Phillips Petroleum Drill in the Arctic Refuge’, by
Athan Manuel (Published in March 2001 by the U.S. Public Interest Research Group)
•
August 1998 to Lockheed Corporation workers. The workers sued after being
exposed to chemicals while working at the top-secret “Skunk Works” aircraft
plant in Burbank, California.
Exxon paid $252 million as part of a $760 million punitive damage award incxxxiv•
hit a pocket of natural gas, causing an explosion and well fire. Thirty-one families
in the area had to be evacuated.
In November 1992 a drilling crew working on an Exxon rig near Hawkins, Texascxxxv•
3 people.
A fire in August 1993 at an Exxon Baton Rouge, Louisiana refinery cooker killedcxxxviA history of pollution
Below is part of a list published in ‘The Dirty Four: The Case Against Letting BP
Amoco, ExxonMobil, Chevron, and Phillips Petroleum Drill in the Arctic Refuge’, by
Athan Manuel. It shows some of Exxon’s environmental contributions during the 90s.
Oil Spills, Offshore Drilling Pollution, and Illegal Water Pollution
•
$600,000 for dumping almost 2 billion gallons of chemical wastewater from their
Baytown, Texas refinery.
Exxon agreed to pay the Texas Natural Resource Conservation Commissioncxxxvii21
A recent report on the Baytown refinery in Houston has revealed persistent accidental releases and
failure to report problems and emissions.
•
Alyeska Pipeline Service Corporation for dumping ballast water wastes at the
Valdez Alaska tanker terminal.
In 1991, the EPA filed complaints against Exxon, British Petroleum, and thecxxxviii•
waterway between Staten Island and New Jersey. In February 1990 the City of New York sued
Exxon for submitting false pipeline safety reports. Prior to the lawsuit Exxon admitted that its leak
detection system had not worked properly for 12 years. A year later Exxon settled out of court,
agreeing to spend $10 to $15 million on environmental improvements.
On January 1, 1990, 567,000 gallons of oil spilled from an Exxon pipeline into the Arthur Killcxxxix•
has contaminated groundwater and soil in southern New Jersey.
Oil that leaked from Exxon’s Paulsboro, New Jersey petroleum storage facilitycxlIllegal Air Pollution
•
Exxon of nearly 200 Clean Air Act violations and demanding $4.7 million in
fines.
In February 1998, the Department of Justice filed a civil complaint accusingcxli•
Act at its Baton Rouge, Louisiana refinery.
In October 1996 Exxon paid a civil penalty of $20,000 for violating the Clean Aircxlii•
Linden, N.J. The penalties stem from Exxon bypassing air pollution control
equipment.
In 1993 Exxon paid $1 million in air pollution fines for its Bayway refinery incxliiiHazardous Waste Violations
•
environmental restoration after discharging selenium, a carcinogen, into San
Francisco Bay.
In August 1998, Exxon and Tosco agreed to pay $4.8 million in damages and forcxliv•
oilfield waste suit. The residents of Grand Bois, Louisiana sued Exxon and Campbell Wells
alleging that the waste exceeded limits on toxins such as benzene, a known carcinogen.
In August 1998 Exxon was ordered to pay $35,000 to four plaintiffs as part of the Campbell Wellscxlv•
and Recovery Act and $116,000 for Clean Water Act violations at its Baton Rouge, Louisiana
refinery.
In October 1996, Exxon paid a civil penalty of $73,000 for violating the Resource Conservationcxlvi•
Exxon is a PRP for 41 hazardous waste Superfund sites in seventeen states.•
or directly above underground drinking water sources.
In 1991, EPA fined Exxon $125,000 for discharging contaminated fluids from service stations intocxlviiStealing oil and gas
Below are examples of ExxonMobil extracting oil and gas without proper permission
(list again taken from the excellent report ‘The Dirty Four’)
•
oil and natural gas from state land without permission. The state is seeking “tens
of millions of dollars” in compensation.
In January 2001, the State of Texas filed suit against ExxonMobil for extracting•
it extracted from federal lands in 2000. It was part of a $282 million agreement
reached by 10 oil companies for underpaying the government by hundreds of
millions of dollars in drilling royalties on federal land in the western United
States.
ExxonMobil agreed to pay $7 million to settle claims it underpaid royalties for oilcxlviii•
Exxon defrauded Alabama on royalties from natural gas wells in state waters. The
jury awarded the state $87.7 million in compensatory damages and $3.42 billion
in punitive damages.
A Montgomery County jury returned a verdict in December 2000, finding thatcxlix22
Further Information and Resources
The Stop Esso Campaign
UK wide campaign to boycott Esso because of their abysmal climate change record.
Has an excellent website with current info. The campaign is organised by Friends of
the Earth, People and Planet and Greenpeace.
www.stopesso.com
info@stopesso.com
Campaign ExxonMobil
A shareholder organisation dedicated to pressing ExxonMobil to take responsibility
for its role in the problem of global warming and to committing to the development of
non-polluting energy sources.
South Congress
Suite 200 Austin
Texas 78704 USA
Phone (512) 479-0335
Fax (512) 479-7645 611
http://www.campaignexxonmobil.org/
Pressurepoint
Pressurepoint organised an international day of action against Esso on the 11
June.
Pressurepoint
PO Box 95113
Seattle
WA 98145
USA
Email
http://www.pressurepoint.org/
th ofinfo@pressurepoint.orgProject Underground
http://www.moles.org/
Monitors mining and oil companies. All issues of Drillbits & Tailings referred to
above can be found on their site.
U.S. Public Interest Research Group
The Dirty Four: The Case Against Letting BP Amoco, ExxonMobil, Chevron, and
Phillips Petroleum Drill in the Arctic Refuge, By: Athan Manuel,
Published in March 2001
U.S. Public Interest Research Group
U.S. PIRG
218 D St., S.E.
Washington, DC 20003
Phone 202/546-9707
Fax/546-2461
http://www.pirg.org
E-mail:
pirg@pirg.org23
i
Corporate Information: http://profiles.wisi.com/profiles/scripts/corpinfo.asp?CUSIP=30231G102ii
www.fortune.com, viewed 31.08.01iii
ExxonMobil annual report 2000, p. 19iv
Corporate History p. 427v
explanation of this. Read it online at http://www.micheloud.com/FXM/SO/rock.htm
Titan: The Life of John D. Rockefeller Sr., by Ron Chernow, gives a more detailedvi
Corporate History p. 427vii
http://www.essential.org/monitor/hyper/issues/1989/01/mm0189_10.html
EXXON: THE OIL KING, John Summa, published by Multinational Monitor,viii
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ExxonMobil’s web site, http://www.exxonmobil.com/emhistory, viewed 1/9/01x
ExxonMobil’s web site, http://www.exxonmobil.com/emhistory, viewed 1/9/01xi
http://www.corporatewatch.org.uk/magazine/issue3/cw3f7.html
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ExxonMobil annual report 2001, p. 14xiii
ExxonMobil annual report 2001, p. 17xiv
ExxonMobil annual report 2001, p. 14xv
ExxonMobil’s web site, http://www.exxonmobil.com/chemical/about/index.htmlxvi
ExxonMobil’s web site, http://www.exxonmobil.com/opsmap/xvii
Leatherhead and Fawley. Esso video, ‘Graduate opportunities in Esso – a closer look’, 2000, says
1,500 staff at Fawley.
Aberdeen Press & Journal, 2/12/98, ‘Jobs fears as oil firms get hitched up’ gives 2,500 betweenxviii
Lloyd’s List 4/12/99, ‘Oil – Exxon Mobil predicts big savings’, by Helen Carrxix
London [Aberdeen Press & Journal, 2/12/98, ‘Jobs fears as oil firms get hitched up’xx
ExxonMobil, ‘We cover a lot of ground’, recruitment brochure, 2000xxi
Esso – ‘Refining’, Dec ‘96xxii
Institute of Petroleum, Annual statistics, 1998/99, p.6xxiii
from refinery delivery updates, Lloyds List – always 80,000txxiv
Institute of Petroleum, Annual statistics, 1998/99, p.6xxv
Lloyds List, 27/1/97, Special report on Southampton: ‘Dredging programme the key to the future’xxvi
Esso – ‘Refining’, Dec ‘96xxvii
Esso video, ‘Graduate opportunities in Esso – a closer look’, 2000xxviii
Institute of Petroleum, Annual statistics, 1998/99, p. 6xxix
Esso – ‘Refining’, Dec ‘96xxx
‘Esso in the UK’, Dec ‘96xxxi
Hart’s European Fuel News, 8/12/99, ‘Esso Fawley refinery gets new Cogen plantxxxii
Esso video, ‘Graduate opportunities in Esso – a closer look’, 2000xxxiii
Esso – ‘Refining’, Dec ‘96xxxiv
ExxonMobil, ‘Activities in the United Kingdom’, pamphlet, April 2001xxxv
Lloyd’s List 4/12/99, ‘Oil – Exxon Mobil predicts big savings’, by Helen Carrxxxvi
Manchester Evening News 1/3/01, ‘Jobs bonanza - but mind your language’xxxvii
ExxonMobil, ‘Activities in the United Kingdom’, pamphlet, April 2001xxxviii
Institute of Petroleum, Annual statistics, 1998/99, p. 6xxxix
Esso / Exxon Chemical – ‘Forward focus – Graduate opportunities’, summer 1998.xl
Esso Newsline, Feb ’98, p.5xli
Esso video, ‘Graduate opportunities in Esso – a closer look’, 2000xlii
Evening Express, Aberdeen, 12/9/00, ‘UK in gridlock’xliii
Octane Week, 4/12/00, ‘UK weighs more tax cuts to spark sales of ultra low-sulfur gasoline’xliv
Yahoo Finance web site, http://biz.yahoo.com/hd/x/xom.html, viewed 1/9/01xlv
Yahoo Finance web site, http://biz.yahoo.com/hd/mf/x/xom.html, viewed 1/9/01xlvi
ExxonMobil annual report 2000xlvii
Esso UK plc, interim accounts, 15/3/01, from Companies Housexlviii
briefing by Greenpeace (July 2001), online at http://www.stopesso.com/pdf/Dirty%20Tricks.pdf
A Decade of Dirty Tricks, ExxonMobil’s attempts to stop the world tackling climate change, axlix
The Times, 16/10/00, ‘Keith Taylor – obituary’l
Hart’s European Offshore Petroleum Newsletter, 26/1/00, ‘Europe: Oil & gas people’li
Esso Exploration & Production UK Ltd, annual accounts for year ending 31/12/99, filed at Companies
24
House 9/5/00; Mobil North Sea Ltd, annual accounts for year ending 31/12/99, filed at Companies
House 2/11/00
Esso Petroleum Co Ltd, annual accounts for year ending 31/12/99, filed at Companies House 12/4/00;lii
‘Europe: Oil & gas people’
RS Franklin (Mobil Gas Marketing) Hart’s European Offshore Petroleum Newsletter, 26/1/00,liii
Mobil North Sea Ltd, annual accounts for year ending 31/12/99, filed at Companies House 2/11/00liv
Exxon Chemical Ltd, annual accounts for year ending 31/12/99, filed at Companies House 13/6/00lv
Companies House 23/10/00
ExxonMobil Aviation International Ltd, annual accounts for year ending 31/12/99, filed atlvi
Esso Petroleum Co Ltd, annual accounts for year ending 31/12/99, filed at Companies House 12/4/00lvii
12/4/00
Esso Petroleum Co Ltd, annual accounts for year ending 31/12/99, filed at Companies Houselviii
Leslie Wayne, Companies Used to Getting Their Way, New York Times, December 4, 1998lix
http://www.opensecrets.org/lobbyists/client.asp?ID=92872&year=1999, viewed
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The Center for Responsive Politics’ web site,lx
Ibidlxi
viewed 31/08/01
American Petroleum Institute’s web site, http://www.api.org/about/aboutindex.htm,lxii
31/08/01
American Petroleum Institute’s web site, http://www.api.org/globalclimate/bigpicture.htm, viewedlxiii
http://www.stopesso.com/about.htm
The Case Against Esso, a Stop Esso campaign briefing available atlxiv
United States Council for International Business’ website, http://www.uscib.org/dkpuscib.asplxv
United States Council for International Business’ website, http://www.uscib.org/bushclim.asplxvi
November 2000, available at, www.xs4all.nl/~ceo/greenhouse/index.html
Greenhouse Market Mania-UN climate talks corrupted by corporate pseudo-solutions, CEO,lxvii
CEFIC, "Climate Policies and the Chemical Industry", June 1999lxviii
CEFIC, "Climate Policies and the Chemical Industry", June 1999lxix
Global Climate Coalitions’ http://www.globalclimate.org/climscience.htmlxx
http://www.stopesso.com/about.htm
The Case Against Esso, a Stop Esso campaign briefing available atlxxi
The Center for Responsive Politics’ web site, http://www.opensecrets.org/bush/cabinet.asp#1lxxii
Up Texas' Air
The Greening of George W. Bush (The Governor's 'Clean Air' Bill Hasn't Cleaned), by Louise Dubose, 27/10/2000http://www.auschron.com/issues/dispatch/2000-10-27/pols_feature9.html
lxxiii
briefing by Greenpeace (July 2001), online at http://www.stopesso.com/pdf/Dirty%20Tricks.pdf
A Decade of Dirty Tricks, ExxonMobil’s attempts to stop the world tackling climate change, alxxiv
ExxonMobil’s web site, http://www.exxonmobil.com/em_newsreleaselxxv
http://www.opensecrets.org/industries/contrib.asp?Ind=E01, viewed 23.08.01
The Center for Responsive Politics’ web site,lxxvi
ExxonMobil’s web site, http://www.exxonmobil.com/community/lxxvii
The Center for Commercial-Free Public Education’s web site,http://www.commercialfree.org/sem.html
, viewed 23.08.01lxxviii
http://www.mediatransparency.org/recipients/free.htmlxxix
ExxonMobil annual report 2001, p. 5lxxx
The Times, 16/10/00, ‘Keith Taylor – obituary’lxxxi
Lynne Williams, ‘Honorary degrees / noticeboard’, in THES #1266, 7/2/97, p.30lxxxii
ExxonMobil, ‘We cover a lot of ground’, recruitment brochure, 2000lxxxiii
Lloyds List Energy Day - Recruitment & Training - 'Strategies for major change', 23/3/98, p.10lxxxiv
Lynne Williams, ‘Chairs / noticeboard’ in THES #1295, 29/8/97, p.26lxxxv
Olga Wojtas, 'Chemists to make complex simple', in THES, no.1241, 16/8/96, p.7lxxxvi
THES, 'Motor math', in no.1227, 10/5/96, p. SP/2lxxxvii
Managing HE, Issue 1, Winter 1995 (pub. Hobsons)lxxxviii
worldwide website
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http://www.dundee.ac.uk/petroleumlaw/html/zamora.htm, viewed 5/2/99
25
University of Dundee, ‘Armando Zamora’, on website,xc
http://www.dundee.ac.uk/petroleumlaw/html/profile.htm,viewed 5/2/99
University of Dundee, ‘CEPMLP profile’, on website,xci
University of Nottingham, 'Scholarships open to Undergraduate Students', pp. E-46 - E.48, 1996/97xcii
in Prince William Sound and the Gulf of Alaska
pp.3, 9 (pub. Institute of Offshore Engineering, Heriot-Watt University)
Dr Jenifer Baker, Prof Robert Clark & Dr Paul Kingston, Environmental Recovery, June 1990, commissioned by Exxon,xciii
Rowell, 'The Exxon Valdez - a case of corporate virtual reality', March 1994, p.16 (pub. Greenpeace
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Public Policy
Robert Clark, 'Recovery: the untold story of Valdez spill', in Forum for Applied Research and, Winter 1991, pp. 24-26xcv
ibid.xcvi
Golob's Oil Pollution Bulletin, 'Exxon claims ecosystem has recovered fromExxon Valdez
', in vol.V no.11, 7/5/93; quoted in Rowell, op.cit., p.15xcvii
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Rick Steiner, 'Lessons from Alaska for Shetland - lessons from both for thexcviii
News, http://www.nandotimes.com/nation/story/43784p-681103c.html
Scientists still finding oil after 1989 Exxon Valdez spill, by DOUG O'HARRA, Anchorage Dailyxcix
summary of alternatives for public comment, supplement to draft, Anchorage, June
1993, B17; quoted in Rowell, op.cit.,p.15
Exxon Valdez Oil Spill Trustee Council, Exxon Valdez oil spill restoration plan -c
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Loughlin, UK edition, London, 1994, p.55 (pub. Academic Press Ltd, London)
Brenda Ballachey & James Bodkin (both of Alaska Fish & Wildlife ResearchMarine Mammals and the Exxon Valdez, ed. Thomas Rci
Exxon Valdez Oil Spill Trustee Council, op.cit.cii
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Exxon Valdez Oil Spill Trustees, Exxon Valdez oil spill restoration - Volume 1 -ciii
Exxon Valdez Oil Spill Trustee Council, op.cit., B9civ
Baker, Clark & Kingston, op. cit., p.12 - About the authorscv
cited in Rowell, op.cit., p.25
Otto Harrison (of Exxon), 'Lessons from the Exxon Valdez', lecture to Institute of Petroleum, 4/3/92;cvi
OF 2010 Cambridge Energy Research Associates Executive Conference, Remarks by Harry J.
Longwell, Senior Vice President, Exxon Mobil Corporation, ExxonMobil’s web site,
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February 13, 2001, GETTING FROM HERE TO THERE: MEETING THE OIL AND GAS NEEDScvii
Campaign ExxonMobil’ web site, http://www.campaignexxonmobil.org/learn/misinform.shtmlcviii
http://www.fabclimate.org/company_lowdown_e.html#essocix
Global Climate Change, April 2001, ExxonMobil Views,http://www.exxonmobil.com/em_newsrelease/climatetalkingpoints.pdf
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Ibid.cxi
Carbon Logic by W.L. Hare, Climate Policy Director, Greenpeace International,
available online at
For a full outline of this argument see Fossil Fuels and Climate Protection - Thehttp://www.greenpeace.org/~climate/climatecountdown/fossil.htmcxii
Box 3307, Sydney NSW 2001, Ph: 02 9263 0321, Fax: 02 9261 4588
This information has been received from Greenpeace Australia, Greenpeace, GPOcxiii
Southern Pacific Petroleum, annual report 2000, p. 86cxiv
Southern Pacific Petroleum, annual report 2000, p. 56cxv
volume 19, number 6, http://www.essential.org/monitor/mm1998/98june/front2.html
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cxvi
8, 2000, http://www.ran.org
Rainforest Action Network, Action Alert 150, ExxonMobil Threatens Pristine Amazon Valley, Julycxvii
Survival International’s Top Ten List, 1992cxviii
1998: Page Two
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(http://www.moles.org/ProjectUnderground/drillbits/990417/99041707.html),
Drillbits & Tailings: September 21, 1998: Page Two
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April 21, 1998: Page One, MOBIL SHAREHOLDERS TAKE ON HUMAN RIGHT ISSUES
http://www.moles.org/ProjectUnderground/drillbits/980421/98042101.html, Drillbits & Tailings:cxxi
Annual report 2000, p. 12cxxii
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4, Number 19, 23/11/99. Activists Demand World Bank Axe Chad-Cameroon Oil
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Shell and ELF Pull out of Chad-Cameroon Pipeline, Drillbits & Tailings, Volumecxxiv
Lawsuit Says Exxon Aided Rights Abuses, Neela Banerjee, New York Times June 21, 2001cxxv
Villagers Sue
Drillbits & Tailings: December 21, 1998, Mobil Operations in Sumatra (Indonesia) Investigated Ascxxvi
AME Mineral Economics’ web site (economic analysis of metal and minerals)http://www.ame.com.au/mines/co/Cerrejon-Norte.htm
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Survival International’s Top Ten List, England 1992cxxix
Gedicks, Exec. Secretary, WISCONSIN RESOURCES PROTECTION COUNCIL,
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by Ken Smith
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Hart’s European Fuel News, 12/1/00, ‘Further streamlining at Fawley’cxxxiii
Esso fined over fatal gas plant explosion, Monday July 30, 2001, The Guardiancxxxiv
Limited
Michael Fitzpatrick, “California Jury Awards $760 Million Against Exxon, Others,” Reuters, August 8, 1998.cxxxv
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Michael Fitzpatrick, “California Jury Awards $760 Million Against Exxon, Others,” Reuters, August 8, 1998.cxxxvi
Doyle, Crude Awakening, Table 14-2; Oil, Chemical, and Atomic Workers International;Chemical Week
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“Texas Enviro. Group Sues Exxon Over Wastewater,” Wall Street Journal, March 15, 1996cxxxviii
1991, pg. D-1.
Patrick Lee, “Toxics Disposal Probe Targets Exxon, Arco, BP,” Los Angeles Times, Feb. 20,cxxxix
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cxl
Miller, Assistant Commissioner, Fall 1991, pg. 224
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1998.
“DOJ Sues Exxon for Clean Air Violations,” Greenwire/National Journal Group, February 13,cxlii
FY 1997 EPA Enforcement and Compliance Assurance Accomplishment Report, B-39cxliii
“Exxon to Pay Pollution Fines on Refinery It Sold,” Associated Press, Apr. 10, 1993.cxliv
“Oil Refineries Settle Over Selenium,” Contra Costa Times, August 26, 1998.cxlv
Advocate
27
“New Rules on Oilfield Wastes Expected After Tests Finished,” Saturday State Times/Morning, August 31, 1998.cxlvi
FY 1997 EPA Enforcement and Compliance Assurance Accomplishment Report, B-39cxlvii
FY 91 EPA Enforcement and Compliance Assurance Accomplishments Reportcxlviii
http://cnniw.yellowbrix.com/pages/cnniw/Story.nsp?story_id=17255174&ID=cnniwcxlix
http://www.msnbc.com/local/wvtm/229470.asp
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