The encyclopedia · Engineering & Operations · Operational decision · 1989
Exxon Valdez spilled 11M gallons of oil — and Exxon had no plan to clean it up
Exxon's tanker hit Bligh Reef, spilling 11M gallons. The captain was drunk. The response was a fantasy. Cleanup cost $2B. Litigation lasted 19 years.
Exxon · 1989-03-24
What happened
On 24 March 1989, the Exxon Valdez, a supertanker carrying 53 million gallons of crude oil, struck Bligh Reef in Prince William Sound, Alaska. The grounding punctured eight of eleven cargo holds, spilling 10.8 million gallons of oil into the pristine waters. It was the largest oil spill in US history at the time. Captain Joseph Hazelwood was not on the bridge — he was below decks in his cabin. He had been drinking in a Valdez bar before departure.
The response was a catastrophe. Neither Exxon, the Alyeska Pipeline Service Company, the State of Alaska, nor the federal government was prepared for a spill of this magnitude. Mechanical cleanup equipment was not available during the first 24 hours. A helicopter spraying chemical dispersant missed the target. The EPA had warned the Coast Guard in 1984 that the port was not prepared for a major spill. The warning was ignored.
The environmental toll was devastating: 100,000 to 250,000 seabirds, 2,800 sea otters, 300 harbor seals, and 247 bald eagles died. Exxon spent $2 billion on cleanup and another $1 billion on settlements. A jury initially awarded $5 billion in punitive damages; after 19 years of litigation, the Supreme Court reduced it to $507.5 million. Exxon paid in full in 2009. The spill led to the Oil Pollution Act of 1990, requiring double-hulled tankers and spill response plans.
Why it happened
- Captain Hazelwood was drinking before departure and was not on the bridge when the tanker hit the reef. The third mate in charge was not qualified to navigate the shipping lanes.
- Exxon, Alyeska, and the government had no response capability for a large spill. The EPA had warned five years earlier that the port was not prepared. The warning was ignored.
- The litigation dragged on for 19 years. The Supreme Court slashed punitive damages from $5B to $507.5M. Exxon paid $507.5M for one of the worst environmental disasters in US history.
The lesson
A spill response plan that nobody has tested is not a plan — it is a press release. Exxon's $2B cleanup was the price of assuming 11M gallons would never spill.
Sources
- Exxon Valdez oil spill — Wikipedia
- US Supreme Court (Tier 1) — Exxon Shipping Co. v. Baker, 554 U.S. 471 (2008) (grounding on Bligh Reef spilled 11 million gallons; jury awarded $5 billion in punitive damages against Exxon; 1:1 ratio yields maximum punitive damages of $507.5 million; Exxon spent around $2.1 billion in cleanup; Hazelwood downed at least five double vodkas and left the bridge; third mate Cousins unlicensed to navigate those waters; settlements exceeding $1 billion)
- NOAA DARRP (Tier 1) — Exxon Valdez oil spill (24 March 1989, 11 million gallons; wildlife toll ~250,000 seabirds, 2,800 sea otters, 300 harbor seals, 250 bald eagles, up to 22 killer whales; $1.025 billion settlement)
- EPA (Tier 1) — Exxon Valdez Spill Profile (struck Bligh Reef shortly after midnight on 24 March 1989, spilling more than 11 million gallons; Congress passed the Oil Pollution Act of 1990 in the aftermath; adequate cleanup resources did not reach the scene quickly enough)
- Anchorage Daily News — Exxon Valdez case timeline (25 Jun 2008; 1994 jury award of $287 million actual and $5 billion punitive; reductions through the appeals; Supreme Court orders reduction to no more than $507.5 million by a 5-3 vote; $125M criminal fine, $900M civil, Hazelwood convicted of negligent discharge)
- History.com — Exxon Valdez Oil Spill (about $2 billion in cleanup costs; estimated 250,000 sea birds, 3,000 otters, 300 seals, 250 bald eagles and 22 killer whales killed; Oil Pollution Act of 1990 required double hulls; Hazelwood had been drinking and allowed an unlicensed third mate to steer)
- NTSB (Tier 1) — investigation case page DCA89MM040 (accident 3/24/1989 at Bligh Reef, Prince William Sound; vessel Exxon Valdez; marine accident report MAR-90/04)
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