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EXXON EPIC FAILS

REX TILLERSONs GREATEST HITS AND MISSES


by David Lincoln
Eco-Alert
Jan 11, 2017

2016 EXXON Baton Rouge Refinery Fire


Four people critically injured
in November at fourthlargestoil refineryin theUS
producing a half million
barrels per day.
A compressor blew out during
restart of an alkylation unit
following maintenance.
Standard Oilfirst erected the
refinery in 1909, over 100
years ago.

EXXON Leads US In Refinery Incidents


US REFINERY INCIDENTS BY COMPANY
19

20
18
16
14
12

10

10

9 10

6
4
2
0

2111

1111111

111

23

4
11

21

12
Total

222111

EXXON pulls Geoscience Conference Funding


The
American Geophysical Unio
n
will not receive any
funding from EXXON in
2016 after more than
60,000 scientists, activists
and others urged AGU to
refuse Exxon's money.
Scientists claimed the
company has contributed to
the spread of misinformation
aboutclimate change.

EXXON CLIMATE CHANGE POLICIES


INVESTIGATED BY ATTORNEY GENERALS
On March 19,2016, the Attorney Generals of
Massachusetts and the US Virgin Islands announced
they were investigating EXXON because their public
statements and support of Climate Change Denial
organizations was not consistent with their own
research findings.
They were joined by 17 other Attorney Generals
including California and New York.
EXXON responded by suing the Attorney Generals to
reveal all of their documents. The Attorney
Generals and 9 major environmental organizations
have refused to comply.

Tengiz Field in Kazakhstan will Invest $40 Bill


In 2016, operator Tengizchevroil says they
will invest $27.1 billion in facilities, $3.5
billion in wells and $6.2 billion for
contingency and escalation to boost
production about 250,000 barrels per day.
In 1993, Chevron was awarded the rights to
develop Tengiz. EXXON/Mobil acquired 25%
interest in the Consortium in 1995. According
to the company, the Tengiz oil field's
reservoir is located 12,000 feet below ground
level, which makes it the world's deepest
operating super-giant oil field.

2016 KASHAGAN Field in Kazakhstan Relaunch


In Oct 2016, After $50 Billion in
investment,($15 Billion overbudget and
16 years behind schedule), new Operator
EXXON complained of overpromise and
underdelivery, with only 17% interest,
finally began exporting oil from widelycalled CASH ALL GONE after replacing
the entire pipeline system.
With crude prices around $50 per barrel
and OPEC cutting production targets,
Kashagan is still trying to increase
production.

2016 EXXON sells 88 yr.-old Torrance, CA


Refinery to PBF for $538 million
Chemical Safety Board (CSB)
cited numerous EXXON
management problems which
contributed to the Feb 2015
explosion

EXXON Torrance, CA Refinery Flares


EXXON had to demonstrate that
they could operate the refinery for
15 days without an incident.
Before the sale was finalized. It
took 3 months to achieve this goal.
Since unplanned flaring was
common.
Flaring has continued after the
sale to this day.

FEB 2015 EXXON TORRANCE REFINERY EXPLOSION


CSB INVESTIGATION

2015 EXXON Torrance Refinery Explosion


CAL/OSHA cited 18
serious violations, 6
were classified as
willful.
ExxonMobil did not
take action to eliminate
known hazardous
conditions at the
refinery and
intentionally failed to
comply with state
safety standards.

2015 Santa Barbara Refugio Pipeline Break


On May 19, 2015 a Plains All American oil
pipeline spilled nearly 150,000 gallons
along 100 miles of the Santa Barbara
coastline.
Prior to the spill, Exxon, which was the
regions biggest oil operator at the time,
was on pace to generate approximately
$636 million in revenue in Santa Barbara
County during 2015 but as of November 5,
2015 had only generated an estimated
$216.6 million.

ExxonMobil's Las Flores Canyon Facility


EXXON plant and pumps
adjacent to pipeline failure.
Plains All American
operators were located in
EXXONs control room at the
pump station at the time of
pipe failure.

EXXON Santa Barbara Production still shut-in


The offshore oil platforms that
rely on the lines were forced to
shut down when onshore storage
tanks were filled.
As of December 2015, no official
timetable had been established
to restart the rigs

EXXON CONTAMINATION SETTLEMENT NJ


In 2015 Exxon reached a settlement
with New Jersey officials in a longrunning legal battle over
contamination caused by the
company's facilities in the northern
part of the state.
The settlement amount, $225 million
, was far less than the billions of
dollars in damages the state had
been seeking, prompting allegations
that the administration of Gov. Chris
Christie had let Exxon off too easily.

2015 Exxon Rating Downgraded


Standard and Poors
downgrades credit
rating from AAA to
AA+.
It had remained stable
since 1949

EXXON Financial Trouble

EXXON Arun Field, Indonesian Torture Case


Can Proceed
In 2014, a US federal court
decided that the case against
EXXON in Arun Fld, Indonesia
could proceed; in 2015 that
the claims sufficiently "touch
and concern" the United States
that they may proceed in US
court.

2014 Venezuelan Settlement


On October 9, 2014, the World
Courts
International Centre for Settleme
nt of Investment Disputes
awarded ExxonMobil $1.6 billion
in the case the company had
brought against the Venezuelan
government.[
This was only a tenth of what
EXXON sought for Nationalization
of Cerro Negro project.

2014 Giant Oil Discovery in the Kara Sea


In spite of sanctions against Technology Transfer to
Russia, a special US extension granted to EXXON,
resulted in the VICTORY discovery. This well found an
estimated 730 million barrels of oil recoverable at an
initial cost of $600 million but work is suspended.
Rosneft announced that additional drilling in the Kara
Sea will be delayed until at least 2018 due to sanctions
against Russia and its impacts on EXXON. Severe
weather conditions make drilling possible for only
about two months a year, but at current oil prices it is
not economic without specialized Western equipment
and funding given Rosnefts nearly $50 Billion debt.

Rosneft Drilling Rig in Siberia

KASHAGAN Field, Kazakhstan Pollution Fine


In March 2014, Kazakhstan's
environment ministry levied a fine
upon the operating companies of
$735 Million.
When the pipeline was shutdown,
Hydrogen Sulfide remaining in the
pipe was burned off as an emergency
measure, releasingSulfur Dioxide
into the atmosphere.
Aerial view of the KASHAGAN field structures

2013 Mayflower, AR Tar Sands Spill

On March 29,2013 EXXON Pegasus Pipeline


carrying tar sands oil bursts spilling
135,000 gallons into the Mayflower
neighborhood.

22 homes evacuated
4 homes demolished
EXXON paid $5 million in penalties

EXXON Pipeline Break on 65 yr. old Pegasus Line


in Mayflower, AR
The flow of the southern section was
reversed in 1995, and again in 2002
The northern section was abandoned
in 2002, before being recommissioned in 2005-2006 and
reversed to carry diluted bitumen
from Alberta Tar Sands to refiners in
Texas.[7]
Used a manufacturing process called
LF-ERW (Low-Frequency Electric
Resistance Welds). This process has
been known to have latent defects
which eventually leads to failures.

2013 Angry Protests in Iraq W. Qurna Field


In Feb 2013 over1,000 people have protestedat
ExxonMobil and Russia Lukoil's super-giant West
Qurna oil field,demanding jobs and paymentfor
private land that has been lost or damaged by oil
operations.
The army was called in to restore order after the
protesters stormed offices and smashed surveillance
cameras at the oilfield.
"At least 400 angry protesters breached the main
gate and broke into West Qurna oilfield,". "Most of
the foreign and local staff left the field as a safety
measure and work was significantly affected."

2013 EXXON sells of its Interest in S. Iraq Field


Nov. 2013 Exxon reduces its
interest in West Qurna Field
from 60% to 25%.
It sells 25% to PetroChina and
sells 10% to Pertamina, the
Indonesia National Oil
Company.
Production peaks at slightly
below 500,000 per day on the
20 year contract.

KASHAGAN Field in Kazakhstan Pipeline Failure


in September 2013, Production of more than
150,000 barrels oil per day from the
Kashagan field abruptly ceased, due to toxic
gas leaks from the sour gas subsea pipeline.
Following investigations, it has been decided
that both the oil and the gas pipeline will be
replaced
2013 partners replaced undersea links after
high pressure sour gas (High Sulfur) cracked the
pipes due to severe corrosion and extensive
damage in freezing weather conditions.
Kashagan is now expected to cost a total of
$136 billion, more than 140% above initial
estimates

2012 Baton Rouge Refinery pipeline oil spill


In April 2012, a crude oil pipeline,
from the Exxon Corp Baton Rouge
Refinery, burst and spilled at least
1,900 barrels of oil (80,000 gallons)
in the rivers of Point Coupee Exxon
Corp Baton Refinery for a few days.
According to former EXXON CEO
Lee Raymond, Im not a U.S.
company and I dont make
decisions based on whats good
for the U.S.

Baton Rouge Refinery benzene leak


On June 14, 2012, a tank in the
Baton Rouge Refineryfailed and began
leakingnaphtha, a substance that is
composed of many chemicals including
benzene. ExxonMobil originally reported
to the
Louisiana Department of Environmental
Quality
(LDEQ) that 1,364 pounds of material
had been leaked
On June 20, ExxonMobil sent an official
notification to the LDEQ saying that the
leak had actually released 28,688
pounds of benzene, 10,882 pounds of
toluene, 1,100 pounds of cyclohexane,
1,564 pounds of hexane and 12,605
pounds of additional VOCs

2012 Nigeria EXXON Pipeline Oil Spill


Nov 2012, EXXON Offshore Pipeline spills oil
along 20 miles of shoreline. One of two
major EXXON oil spills in Nigeria in just two
months.
The UN reported that 50 years of oil spills
neglected by oil companies and the
government in Nigeria had devastated
Oganiland in the Niger Delta.

A native scoops oil into cans


from the EXXON spill.

2011 EXXON Deal for fields in Kurdistan, Iraq


Oct. 2011 Tillerson signs contract for 6
fields in Disputed territory in Iraq.
Baghdad Government threatens EXXON
with military action but already owes the
company $1 Bill.
US State Dept advises EXXON to wait for
passage of National Legislation but
Tillerson refuses.
Within days US talks to extend deadline
for troop withdrawal failed.

2011 Yellowstone River, MT Oil Spill

Exxon Silvertip Pipeline


spilled 63,000 gallons of oil
into the Yellowstone River
Two and a half hours
outside of Yellowstone
National Park

2011 Yellowstone River, MT Oil Spill


Ruptured about 10 miles
west of Billings on July 1,
2011
The resulting spill leaked an
estimated 60,000 gallons
into the Yellowstone River
for 56 minutes before it was
shut down

EXXON Deal with Russias Rosneft in Kara Sea


August 2011 EXXON signs deal with Rosneft. The two
companies agreed to invest US$3.2billion in a joint
venture to develop the three East-Prinovozemelsky blocks.
Exxon traded 30% interest in Kara Sea projects for
shares in West Texas Projects and 30% of Exxon's Gulf of
Mexico leases and projects in Alberta. Canada.
Investments could possibly reach as high as $500billion,
but in the near term, it is likely that investments will
reach only tens of billions of dollars.
US Sanctions against Russia in 2014
prohibited EXXON participation

2010 EXXON/MOBIL Nigeria Oil Spills


In May, the company declared force majeure when an offshore
pipeline breaks spilling a million gallons of oil into the Niger
Delta in 7 days. Another spill occurred on June 19 th, and tar
balls reached the beach the following day. By November they
reported 4 spills in the previous 6 months.
EXXON/MOBIL was cited for the use of dispersants near
the coast which were considered against environmental
standards.
The government estimated that the country was experiencing
about 300 spills per year between 1970 and 2000.

EXXON Nigeria Protests Shutdown Production


Protesters following the spill, claimed
that had been beaten by security
guards near the EXXON/MOBIL
facilities. Locals are demanding $1
billion in compensation.
In May 2010, the company declared
force majeure

2010 EXXON SIGNS NEW AGREEMENT FOR GIANT


NATUNA EAST CO2 GAS FIELD IN INDONESIA
The estimated resource in
place of the East Natuna field
is around 222trillion cubic feet
of which totalproven reserves
of natural gas are 46trillion
cubic feet with 175 trillion
cubic feet of CO2.
Production is forecast to be
around 2billion cubic feet per
day.

2010 BP Oil Spill Uses nearly 2 mill gallons of


EXXON COREXIT Dispersant
Corexit is a line ofoil dispersantsused during
oil spillresponse operations. It is produced by
Nalco Company, associated withBPandExxon
and an indirect subsidiary ofEcolab.
Corexit was originally developed by the
Standard Oil Companyof New Jersey.
in 2013 a report by the
Government Accountability Projectalleged
"devastating long-term effects on human health
and the Gulf of Mexico ecosystem" stemming
from the use of Corexit

The total used in the BP


Gulf event was 1.84 million
gallons of Corexit EC9500A
and Corexit EC9527A, with
roughly 58% sprayed from
the air.

2009 EXXON Iraq Deal for Giant W. Qurna Field


Nov 2009 Tillerson signs contract for West
Qurna Phase 1 Field in Southeast Iraq.
He signs Service Contract committing $50
Billion investments for 9 billion barrels at less
than $2 per barrel net.
This is an obvious foot-in-the-door approach
which involves $25 Billion in drilling and
equipment with another $25 Billion in in
operating costs to raise production from
270,000 barrels per day to 2.25 Million barrels
per day in 7 years.
At the start of 2016 Production from the field
was only 400,000 barrels oil per day.

2009 EXXON MTBE CLEAN WATER ACT VIOLATIONS


In 2009 a federal jury found Exxon
Mobil liable for contaminating
ground water in New York with the
gasoline additive MTBE and
awarded the city $104 million in
compensatory damages.
Exxon knew of the potential for
groundwater contamination when it
added M.T.B.E. to gasoline and
failed to warn government
agencies, gas station owners and
the public about the danger.

EXXON Ruled Against in Yemen by Arbitrators


November 2008 ICC rules that Yemen was within the law
and contract provisions when it refused to extend
EXXON contract.
Yemen government allowed to keep 100% of production
and oil revenues from YEPC Block 18 without penalties.
The decision was worth Billions of dollars to Yemen
which was dependent on oil for more than 90% of their
total revenue.

2008 EXXON REFINERIES CLEAN AIR ACT


SETTLEMENT
In 2008 Exxon Mobil agreed to pay
about $6 million to resolve charges
that it violated the terms of a
2005 Clean Air Act settlement
concerning emissions from its
refineries in Texas, Louisiana and
California.

EXXON TSCA VIOLATIONS IN SANTA BARBARA, CA


Also in 2008, Exxon Mobil agreed
to pay $2.64 million to settle EPA
charges that it violated the Toxic
Substances Control Act
Improperly handling and
disposing of PCBs on an offshore
oil and gas platform in the Santa
Barbara Channel off the Southern
California coast.

2007 Greenpoint, Brooklyn Oil Spill


A study of the spill released by the
US Environmental Protection Agency in
September 2007 reported[140]that the spill
consists of 17 to 30million US gallons of
petroleum products from the mid-19th century to
the mid-20th century.[141]The largest portion of
these operations were by ExxonMobil or its
predecessors.
Subsequent investigations found product from
the spill encompassing more than 52-acres under
Greenpoint.

ExxonMobil in Venezuela Nationalized


EXXON Alleged that
the government
illegally expropriated
its assets in 2007 and
paid unfair
compensation.

2007 KAZAKHSTAN Fines Tengiz for Sulfur

The government of Kazakhstan levied a $600 million


fine on the Tengiz/Chevroil Consortium for failure to
process and contain mountains of Sulfur on the ground
and threatening the health of workers and local
populations.
Approx.10 million tons of open air sulfur accumulated
next to the marshes as a product of the 15% H2S at the
oil and gas processing plant.
Previously, the Consortium had been fined $70 million
and forced to relocate the entire population (3500
people) of the village ofSarykamysto new homes in the
vicinity of Atyrau at an estimated cost of $73 million to
protect their health.

Image of Tengiz Field processing


facilities with the sulfur blocks

2006 EXXON FUEL LEAK IN MYSTIC, MA


The company pleaded guilty to
one criminal charge of violating
the Clean Water Act in
connection with a 2006 leak of
fuel oil into the Mystic River in
Massachusetts.

2005 Indonesian Aceh Insurgency Ended


TheFree Aceh Movement(Indonesian:Gerakan
Aceh Merdekaor GAM fought against Indonesian
government forces in theAceh insurgencyfrom
1976 to 2005, during which over 15,000 lives are
believed to have been lost. GAM signed a peace
treaty with Indonesia in the aftermath of the
devastation caused by amassive tsunami, in Dec,
2004 which killed an estimated 150,000 people in
Indonesia .
On the question of the uneven distribution of
income, it was settled that seventy percent of
the income from local natural resources will stay
within Aceh.

Mass grave was uncovered in central Aceh,


the province where a bloody civil war
raged for years

2005 EXXON Forced to Relinquish Marib Field in


Yemen
Yemeni Parliament vetoed 5 yr. contract
extension on Block 18 after 20 year production
contract with EXXON and Hunt Oil, the Yemen
Exploration and Production Company (YEPC)
expired.
YEPC sued Yemen for $1.6 billion and the case
went to arbitration at the International
Chamber of Commerce (ICC) in France.
Yemen counter-sued EXXON and partners for $8
billion for environmental damages and reservoir
mismanagement during part of time that
Tillerson was Pres. of EXXON YEMEN Inc.

2003 RUSSIAN YUKOS OIL SEIZED


Head of Yukos in Russia
Khodorkovsky is arrested.

2001 EXXON Shuts Down Arun Fld, Indonesia


The International Labor Rights Fund took on the
cause of people claiming to be victims of abuse
on behalf of 11 villagers from Aceh claiming to
be victims of human rights abuses by security
forces hired by ExxonMobil. In addition, the suit
alleges that the security forces are either
employees or agents of Exxon Mobil, and thus
Exxon Mobil is liable for their actions.
Fearing for the lives of its employees after a
series of attacks, ExxonMobil shut down its Arun
natural gas operations in Aceh in March 2001

2000 KASHAGAN Field Discovered in Kazakhstan


Worlds biggest oil find in 35 years found by Shell in
the N. Caspian Sea est at about 35 Billion Barrels in
place & 8 Bill barrels of oil recoverable.
Phase 1 production was limited by physical capacity
at onshore and offshore facilities and is targeted at
more than 350,000 barrels of oil per day. Production
was initially delayed by the need to build 10 remote
islands to support drilling equipment.
The Italian Operator ENI had originally planned to
build worker housing too near operations that could
expose workers to toxic gas leaks.
Phase two, development has the potential to increase
output to 1 million barrels a day and could make it
the most expensive energy project in the world.

An artificial island on the Kashagan


offshore oil field

1999 EXXON Merges with Mobil


In 1968, Mobil began operating the Arun gas fields, which are
owned by the Indonesian state oil company, Pertamina. In 1971,
Mobil Oil Indonesia discovered massive reserves of natural gas in
north Aceh, which led to the creation of the Lhokesemawe
Industrial Zone (ZILS.) After Exxon bought Mobil in 1999, the
merged company, which is based in Irving, Texas, took over the
management of Arun. This was Mobils largest production asset
worth about $1 billion in revenue annually.

1998 EXXON Production Peaks in Thailand


Production at Nam Phong Gas Field for ESSO Khorat Inc (when
Tillerson is President) laterpeaks at 150 MMcfd and soon declines
to 50 MMcfd.
After spending $300 million in Thailand, recoverable reserves were
subsequently cut from 1.5 TCF to 400 BCF (nearly 75% decrease).
Esso Khorat officials said the field might not justify additional
investment.

Aceh Resistance in Indonesia Against Mobil


From 1989 to 1998, the Indonesian
government designated Aceh as a Military
Operation Area, with thousands of troops
assigned to defeat the armed
independence force around the oil fields.

A sign warns civilians to keep out of the first


of four natural gas fields that together make
up ExxonMobil's facility in Lhoksukon, Aceh

1998 SAKHALIN ISLAND, RUSSIA


Tillerson is appointed as head of
EXXON Neftegas in charge of
Sakhalin Island Oil and Gas
project off Siberia.
He continues to hold the Neftegas
responsibilities until 2016

EXXON/MOBIL Buys into KAZAKHSTAN


In May 1995, Exxon/Mobil bought a 25%
interest into the Tengiz Field operated by
ChevronTexaco for $1 Billion.
In 2003, A New York Grand Jury indicted an
American fixer, James Giffen, and Mobil
Rep. J. Bryan Williams for bribery of
foreign officials in the acquisition of that
contract.
Tengiz Field is the sixth largest field in the
world with production of over 500,000
barrels of oil per day and recoverable
reserves of 6 billion barrels and a 40 year
field life

1995 EXXON SIGNS INDONESIAN CONTRACT FOR


GIANT NATUNA CO2 FIELD
The Gas Field will be the
largest in Asia with reserves of
about 200 TCF
The development of Natuna
Field is expected to cost
US$2040billion.
CO2 content of the Natuna
Field resource is about 71%
CO2 might be released across

1990 EXXON BAYWAY REFINERY, NJ PIPELINE LEAK


On January 1, 1990 a cracked underwater pipeline at
the company's Bayway Refinery in New Jersey leaked
some 600,000 gallons of heating oil into part of New
York harbor.
Three accidents involving spills have pummeled New
York area barging operations and will result in
shutdown of a refinery. Exxon Corp. indefinitely
suspended tanker and barge operations involving its
130,000 b/d Bayway refinery at Linden, N.J., and
Bayonne, N.J., terminal Mar. 2. Three product spills
into water have occurred near the facilities in 3
months

1989 EXXON Valdez, Alaskan Oil Spill


March 24, 1989,Exxon Valdez oil spill
resulted in the discharge of approximately
11million US gallons of oil into
Prince William Sound, oiling 1,300 miles of
the remote Alaskan coastline
EXXON developed COREXIT with 2butoxyethanol was identified as a causal
agent in the health problems experienced
by cleanup workers
According to the Alaska Community Action
on Toxics, the use of Corexit during the spill
caused people "respiratory, nervous system,
liver, kidney and blood disorders".[48]

EXXON BATON ROUGE REFINERY EXPLOSION


In December 1989 an
explosion at E Baton Rouge,
Louisiana refinery was so
powerful that debris was
spread for miles; two men
were killed in the incident.

1989 EXXON/MOBIL TORRANCE REFINERY HF SUIT


EXXON was sued by the city of Torrance, California because
of leaks of hydrofluoric acid and other health and safety
problems at the company's refinery. The suit, calling the
facility a public nuisance, cited numerous instances of
worker injury and death at the refinery as well as an
instance in which fumes from the plant hospitalized eight
students and two teachers at a nearby school.
The city later filed criminal charges against the company
and two of its managers in connection with a 1988 explosion
at the refinery that killed one person and burned several
others. In 1990 Mobil and the city reached a settlement of
the public nuisance suit in which the company agreed to
phase out or reformulate the use of hydrofluoric acid.

1989 LOS ANGELES RIVER POLLUTION


EXXON/Mobil pleaded no
contest to criminal
charges in California
relating to pipeline
ruptures the year before
that had spilled more
than 130,000 gallons of
crude oil, much of it into
the Los Angeles River and
the city's sewer system

1985 TENGIZ, KAZAKHSTAN WELL BLOW-OUT


Tengiz Field has the highest pressure
and is one of hottest reservoirs with
one of the highest contents of
poisonous hydrogen sulfide gas (19%)
in the world.
An explosion and blow-out in 1985
resulted in the death of one worker
and a 600-foot high flame visible for
almost 90 miles. It took over a year to
cap the well and extinguish the fire.

1982 EXXON BLACK SUNDAY Firings in Colorado


EXXON terminates 2100 workers on
Black Sunday in Colony Oil Shale
Project
Overnight the 2100 people employed
on the project became unemployed,
locked out and not even allowed to
retrieve their personal effects when
they showed up at the job site the next
morning.

1980 EXXON OIL SHALE PROJECT, COLORADO


EXXON buys Amocos share of Colony Oil
Shale Project for $300 million in
Piceance Basin, Colorado.
2 years later EXXON quits the
partnership and pays, The Oil Shale
Company, TOSCO, $380 million in
penalty. TOSCO becomes the precursor
of PBF, the eventual buyer of EXXONs
Torrance Refinery in 2016.

1979 TORRANCE REFINERY EXPLOSION

On Dec. 3, 1979, vapors leaking from


a gasoline storage tank at the Mobil
Oil facility in Torrance ignited,
causing a major explosion. Three
people were killed. Firefighters
contained the flames to the storage
tank, then for two days allowed the
remaining gasoline to burn. The
smoke plume was seen all over the
Los Angeles Basin

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