Why Did NJ Settle a $9 Billion Pollution Case for Pennies on the Dollar?

New Jersey News | Feb 27, 2015

The state of New Jersey is settling a decade-long environmental dispute with ExxonMobil over the contamination of 1,500 acres of wetlands and waters. 

The New York Times reports that the company will pay $250 million to settle the matter. That's pennies on the dollar compared to the $9 billion in damages New Jersey officials had been seeking.

According to the Times, a judge was set to decide how much Exxon would have to pay, but the Christie Administration twice petitioned a judge to hold off on the ruling.

The settlement has drawn criticism from several environmental advocates, like NY/NJ Baykeeper's Debbie Mans.

"The cleanup of this site's not going to happen for $250 million," said Mans. "The experts in this case estimated that the excavation and the cleanup alone cost around $2 billion."

Still, New York Times reporter Benjamin Weiser said the value of a settlement should be dismissed, and that New Jersey was not guaranteed a favorable outcome in the judge's ruling.

'The judge could have awarded, really, anything," said Weiser. "Had Exxon lost this case...Exxon could appeal, and that could take years. And this does give some closure to a case."

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