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Klobuchar: Lessons from Exxon Valdez Oil Spill Will Help Protect BP Victims

Klobuchar chairs hearing that focuses on victim compensation following the Gulf oil disaster

July 27, 2010

Washington, D.C. – U.S. Senator Amy Klobuchar chaired a hearing today titled, “Exxon Valdez to Deepwater Horizon: Protecting Victims of Major Oil Spills.” The hearing examined the lessons that were learned in the wake of the Exxon Valdez disaster regarding victim compensation and the scope of the harm that major oil spills can cause to individuals, businesses, and communities. The hearing included testimony from Brian O’Neill, partner at Faegre & Benson LLP in Minneapolis, who has represented 32,000 Alaskan fishermen since the Exxon Valdez oil spill occurred. Joe Banta, an Alaskan fisherman who lost his livelihood after the Exxon Valdez disaster and currently works on oil spill prevention and response for the Prince William Sound Regional Citizens’ Advisory Council, also testified.

“Businesses and communities across the country are interconnected with the Gulf region and will suffer because of this disaster,” Klobuchar said.  “In order for us to begin to protect and compensate victims, we need to understand exactly what the true costs of oil spills are and what harms may not be fully accounted for years after the disaster occurs.”

At the hearing, Klobuchar questioned O’Neill about his work to obtain compensation for victims of the Exxon Valdez spill.  Following the oil spill, Exxon executives fought against paying damages and compensating fishermen for years, even after pledging to pay all costs.  An estimated 8,000 of the original Exxon Valdez plaintiffs died while waiting for their compensation while Exxon fought them in court.

Klobuchar stressed that the $20-billion response fund set aside by BP at the urging of President Obama and Congress was an important first step. However, changes need to be made to current law so that oil spill victims in the Gulf can recover costs that Exxon Valdez victims were unable to recover, including losses to the tourism industry, diminution of value of fishing permits and boats, the permanent loss of certain species like herring, as well as local governments’ lost tax revenue and the cost of diverted public services.

Alaskan communities still face financial, ecological, and sociological problems from the oil spill in 1989.  Klobuchar discussed how the experiences of the Exxon Valdez spill can help better understand the scope of the disaster in the Gulf, and ensure that BP – and not American taxpayers – will be fully responsible for all of the costs of the Gulf oil spill.

Last month, Klobuchar joined in the introduction of legislation to require BP and future oil companies to set aside funding in an escrow account to address damages and claims from major oil spills.  Klobuchar is also a sponsor of S. 3472, a bill that would remove the liability cap for offshore oil drilling accidents. 

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