$14 million air pollution fine for Exxon's Baytown refinery stands

(Reuters) - ExxonMobil Corp must pay a $14.25 million fine over air pollution at its Baytown, Texas crude oil refinery, a federal appeals court affirmed Tuesday. It is the largest penalty ever assessed in a citizen enforcement suit over air pollution, say the plaintiffs' lawyers.

In a split decision, a three-judge panel backed a lower court’s finding that the company can be held responsible for the pollution that occurred over an eight-year period at its “massive” Baytown complex, which includes a chemical plant and refinery.

The 5th U.S. Circuit Court of Appeals, weighing in on the overall dispute for the third time, said the district court had reasonably considered the violations in the aggregate instead of individually, as Exxon had argued was correct.

The court said the repeated Clean Air Act violations warrant the penalty Exxon faces. While each violation may pose little threat individually, they together add up to the considerable sum of 1.5 million pounds of illegal pollutants, the opinion said.

"Exxon does not offer any alternative definitions of 'seriousness' that the district court could have applied instead,” wrote Judge Gregg Costa for the majority, in one of his last opinions for the court. (Costa, an Obama appointee, retires Wednesday.)

Dissenting, Judge Andrew Oldham, a Trump appointee, called the case a “jurisdictional mess,” saying plaintiffs Sierra Club and Environment Texas Citizen Lobby had not adequately shown the harms claimed — including respiratory problems and other health issues — were traceable to Exxon.

Josh Kratka, an attorney with the National Environmental Law Center who represented the appellees, says it's an important precedent. "For a wealthy company that fought tooth and nail to get this penalty, it sends a message," Kratka said.

ExxonMobil spokesperson Julie King said the company respects the court's opinion but disagrees with the outcome. "We acted responsibly and in accordance with regulatory compliance," King said in an email.

In March 2021, U.S. District Judge David Hittner, on remand from the 5th Circuit, knocked about $6 million off an original penalty of nearly $20 million.

The case is Environment Texas Citizen Lobby v. ExxonMobil Corp, U.S. Court of Appeals for the 5th Circuit, No. 17-20545.

For the environmental groups: Philip Hilder of Hilder & Associates; and Charles Caldart and Joshua Kratka of the National Environmental Law Center

For ExxonMobil: Russell Post and Fields Alexander of Beck Redden; Keith Courtney of McGinnis Lochridge; Eric Nichols of Butler Snow; and Bryon Rice of Hicks Davis Wynn

Read more:U.S. judge knocks nearly $6 million off fine for Exxon Baytown, Texas, pollution

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