Natural Resources Restoration

Use of Exxon Valdez Oil Spill Settlement Funds Gao ID: RCED-93-206BR August 20, 1993

Under the civil settlement stemming from the 1989 grounding of the supertanker Exxon Valdez--the largest oil spill in U.S. history--Exxon agreed to pay a total of $900 million in 11 annual payments. Under the criminal settlement, Exxon was fined $150 million and required to pay $50 million each to the federal government and the state of Alaska to help restore areas damaged by the spill. This briefing report provides information on the amount and distribution of money that Exxon has paid through December 1992 under the settlements. GAO also discusses issues surrounding the functioning of the Trustee Council, which was created to coordinate damage assessments and to seek funds from responsible parties to clean up natural resources. GAO concludes that Alaska and federal trustees managing the oil spill settlement funds will have to address several issues before there can be confidence that the money is being spent for natural resources restoration and other intended purposes.

GAO found that: (1) of the $1 billion in criminal and civil penalties assessed against Exxon pursuant to the Valdez oil spill, Exxon has made two annual installments totalling $240 million; (2) of the $240 million in Exxon payments, $107 million has been returned to federal and state agencies as reimbursements for presettlement cleanup and damage assessment costs, $40 million has been offset for cleanup costs that Exxon incurred in 1991, $19 million has been approved by the Trustee Council for damage assessment and restoration project expenditures and administrative costs, and $74 million remains in a joint federal/state trust fund for future use; and (3) the Trustee Council needs to resolve restoration planning, habitat protection, organization and administration, and internal control issues to ensure that funds received from the Exxon settlement are being disbursed as intended.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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