Exxon Gets $7B Valdez Spill Bill

A federal judge on Wednesday ordered Exxon Mobil Corp. to pay about $6.75 billion in punitive damages and interest to thousands of fishermen and others affected by the 1989 Exxon Valdez oil spill.

Exxon Mobil has 30 days to appeal the order by U.S. District Judge Russel Holland, who ordered the Irving, Texas-based company to pay $4.5 billion in punitive damages and about $2.25 billion in interest.

The money is to go to 32,000 fishermen, Alaska Natives, landowners, small businesses and municipalities affected by the 11-million gallon spill in Prince William Sound.

"We have now closed the trial court doors for the last time in this litigation after 15 years," said David Oesting, lead attorney for the plaintiffs. "We're definitely on track to the end of the entire dispute."

Exxon Mobil said it plans to appeal. Spokesman Tom Cirigliano said the 9th U.S. Circuit Court of Appeals has twice vacated Holland's decision in the case.

The judge had been ordered by the appellate court to reconsider the damages awarded in an earlier ruling in light of a U.S. Supreme Court decision last year about punitive damages.

"This ruling flies in the face of the guidelines set by the appeals court," Cirigliano said.

The spill occurred March 23, 1989, less than three hours after the 987-foot ship Exxon Valdez left the Alyeska Pipeline terminal in Valdez. The ship grounded at Bligh Reef, rupturing eight of its 11 cargo tanks and spewing some 10.8 million gallons of crude oil into the sound.