Exxon to pay interest for Valdez spill

ANCHORAGE, Alaska – Oil giant Exxon Mobil Corp. has decided not to appeal hundreds of millions of dollars in interest on punitive damages resulting from the 1989 Exxon Valdez oil spill.

The Irving, Texas-based company will pay about $470 million in interest on more than $507.5 million in punitive damages following the 11 million gallon spill of crude in Prince William Sound, company spokesman Tony Cudmore said Monday.

The company expects to make payment on the interest in the next few days, said plaintiffs’ lawyer David Oesting. Exxon’s decision was first reported Monday by the Anchorage Daily News.

The decision is a turnaround for the company. Exxon Mobil since the mid-1990s has appealed court rulings on punitive damages.

Earlier this month, Exxon Mobil was ordered to pay interest on the punitive damages. The ruling issued by the 9th U.S. Circuit Court of Appeals in San Francisco nearly doubles the average payout of about $15,000 to 33,000 Alaska Natives, fishermen, business owners and others.

Numerous studies have found the region has not fully recovered from the disaster that fouled 1,200 miles of coastline in the nation’s worst crude oil spill.

In June 2008, the U.S. Supreme Court set punitive damages at $507.5 million.

But two months later, the high court declined to decide whether Exxon Mobil must pay interest on the punitive damages and instead sent it back to the appeals court.