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Corporate Ethics

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Anonymous

Guest
Exxon Sabotage May Merit $1 Billion Fine, Agency Says (Update2)


By Joe Carroll

July 17 (Bloomberg) -- Exxon Mobil Corp., the largest U.S. oil company, may be fined more than $1 billion for “malicious” sabotage of wells to prevent other producers from tapping fields it no longer wanted, the Texas General Land Office said.

Jerry Patterson, commissioner of the land office that oversees oil leases that help fund Texas schools, asked the Texas Railroad Commission to conduct hearings into an alleged 1990s program at Exxon Mobil of plugging abandoned wells with trash, sludge, explosives and cement plugs. The barriers made it impossible for other producers to revive the wells, Patterson said in a statement he gave to Bloomberg News yesterday.

Under Railroad Commission rules, Exxon Mobil could face fines of $10,000 a day per well, Patterson said in the statement, which he plans to release on July 20. He said those penalties could add up to more than $1 billion on wells the company abandoned in 1991 after a disagreement over royalties with the owners, the O’Connor family, a Texas oil dynasty.

“The allegations paint a false and misleading picture of Exxon Mobil’s involvement in the O’Connor oil and gas leases,” said Margaret Ross, an Exxon Mobil spokeswoman. “The area in which the wells are located has a water table very close to the surface. It was critical that Exxon protect the groundwater by plugging the wells solidly and thoroughly.”

In March, the Texas Supreme Court dismissed lawsuits against Irving, Texas-based Exxon Mobil for damaging the wells, ruling that too much time had passed. O’Connor heirs and Emerald Oil & Gas Co., which took over some of the former Exxon Mobil leases, were plaintiffs in the suits.

‘Flagrant Violations’ Alleged

“Exxon committed irrefutable, intentional and flagrant violations of state rules regulating the oilfield,” Patterson said in the statement. “The senseless waste of our natural resources, the sabotage of a producing oilfield and cover-up by Exxon is a malicious act that must be dealt with by the state of Texas.”

The Railroad Commission hasn’t decided whether to hold hearings on the well closings, said Ramona Nye, a spokeswoman for the agency. The three commissioners are next scheduled to meet on July 21. Nye confirmed the agency has the authority to fine companies $10,000 a day for improperly plugging a well.

The 118-year-old commission has been responsible for regulating oil production in the state since the 1930s, when rampant drilling caused a supply glut that collapsed crude prices, according to the Texas State Historical Association.

Relationship Soured

From the 1950s to the late 1980s, the O’Connors earned more than $40 million in royalties on crude and gas pumped from 121 wells that Exxon Corp., as the company was then known, and a predecessor, Humble Oil & Refining Co., drilled on the family’s land near Corpus Christi, according to court filings.

The relationship deteriorated in the late 1980s, when Exxon’s request for a cut in the 50 percent royalty rate was rejected, court documents showed. Exxon said the field was no longer profitable and began shutting wells, a process that ended in August 1991, the documents showed.

Two years later, Emerald Oil, a closely held energy company based in Refugio, Texas, agreed to lease from the O’Connors one- third of the area formerly operated by Exxon. When Emerald drilled into the plugged wells to revive production, drill bits collided with cement, severed pipes and explosive charges normally used to perforate rock formations, Patterson said.

Exxon failed to accurately describe the obstacles it dumped into the wells in reports known as W-3s that it filed with the Railroad Commission, Patterson said in a July 15 letter to the agency. Those reports gave Emerald a false picture of how difficult it was going to be to resume output, he said.

Impact Potential

“You don’t foul your own nest,” Patterson said. “And that is exactly what Exxon has done.”

A $1 billion fine would be about one-fifth as costly to Exxon Mobil as the 1989 oil spill by the Exxon Valdez tanker off the coast of Alaska. The company paid $4.84 billion in cleanup costs, fines, punitive damages and interest for the incident that dumped 11 million gallons of crude into Prince William Sound, damaging wildlife and the fishing industry.

“The negative PR in their home state is probably more damaging than perhaps any potential costs,” said Gianna Bern, president of Brookshire Advisory & Research Inc. in Flossmoor, Illinois. “For most oil producers in the world, a $1 billion fine would inflict a lot of pain, but because of Exxon’s size and significant cash reserves, they could deal with it.”

Exxon Mobil rose 6 cents to $68.52 in New York Stock Exchange composite trading. Before today, the stock had dropped 14 percent this year.

$25 Billion in Cash

Exxon Mobil had $25 billion in cash and cash equivalents at the end of the first quarter, more than The Hague-based Royal Dutch Shell Plc and BP Plc of London combined, according to data compiled by Bloomberg. For Exxon Mobil, $1 billion is equivalent to 2.2 percent of last year’s net income.

The 62-year-old Patterson, a former U.S. Marine Corps fighter pilot, said he’s trying to maximize royalty payments to the state’s Permanent School Fund by encouraging more petroleum production.

“This isn’t coming from a Birkenstock-wearing environmentalist,” Jim Suydman, a Patterson spokesman, said in a telephone interview. “He’s a gun-toting Republican who wants to make sure the rules are followed and the state’s natural resources are properly developed.”

Exxon Mobil, which pumps more oil than every member of the Organization of Petroleum Exporting Countries except Saudi Arabia and Iran, posted a record $45.2 billion profit in 2008, or more than $6 for every man, woman and child on the planet.

The company has been shifting its exploration and production focus for more than a decade from traditional oil provinces such as Texas and the North Sea to places such as West Africa and Brazil, where prospective discoveries are larger.


Last month, the company agreed to pay $470 million in interest on a $507.5 million judgment to victims of the Valdez spill. That’s in addition to $3.86 billion spent over several years on the cleanup, penalties and other related costs.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aD9ay0Seryas#
 

backhoeboogie

Well-known member
You are getting awfully eager about someone who "MAY BE" fined.

Allegations is used over and over in that write.

Lemme know if they find any truth to the rumor.
 

TexasBred

Well-known member
This is really pretty common practice in the oil and gas business. Nobody wants anybody else to know what's really going on...but....the leases belong to Exxon...the oil belongs to Exxon as well. Nobody gets paid (including Exxon) until the oil comes out of the ground. Plugging and abandoning is nothing new. Old wells are constantly being reopened and new wells plugged. We've got gas wells right now that appear to be choked back to almost nothing and oil wells that have been drilled held waiting for prices to go up. Since I receive a percentage of the sales (just like the State of Texas does on their royalties), I'd think they too would want to wait until prices would go up and increase their royalty check.

Now some two bit judge may rule against them but I'd think the oil company could pump oil when they get damned well ready.
 

backhoeboogie

Well-known member
TexasBred said:
Now some two bit judge may rule against them but I'd think the oil company could pump oil when they get damned well ready.

Especially when the prices are marginally at the break even price for producing it. Obama took all production incentives out. Shut 'em down.
 
A

Anonymous

Guest
The 62-year-old Patterson, a former U.S. Marine Corps fighter pilot, said he’s trying to maximize royalty payments to the state’s Permanent School Fund by encouraging more petroleum production.

“This isn’t coming from a Birkenstock-wearing environmentalist,” Jim Suydman, a Patterson spokesman, said in a telephone interview. “He’s a gun-toting Republican who wants to make sure the rules are followed and the state’s natural resources are properly developed.”

Yep- must be one of the old school Republicans, because this bunch we have now (like the corporate fascist backslapping neocons posting here) would rather send more money to build the economies of the Arab princes, Muslim mullahs, and Chavez .... :(

Exxon the good old boys.... :wink:
 

TexasBred

Well-known member
Oldtimer said:
The 62-year-old Patterson, a former U.S. Marine Corps fighter pilot, said he’s trying to maximize royalty payments to the state’s Permanent School Fund by encouraging more petroleum production.

“This isn’t coming from a Birkenstock-wearing environmentalist,” Jim Suydman, a Patterson spokesman, said in a telephone interview. “He’s a gun-toting Republican who wants to make sure the rules are followed and the state’s natural resources are properly developed.”

Yep- must be one of the old school Republicans, because this bunch we have now (like the corporate fascist backslapping neocons posting here) would rather send more money to build the economies of the Arab princes, Muslim mullahs, and Chavez .... :(

Exxon the good old boys.... :wink:

Oh hell no Oldtimer. Your original post had to do with domestic oil. I think we all agree we'd like to cut back on imported oil but when the government makes that "the best deal in town" it's just a plain old "good business decision". I'd do the same and you would too.

Now if you're really smart you got some Exxon/Mobil in your portfolio or your mutural fund accounts.
 

hypocritexposer

Well-known member
OT, Canada has lots of Heavy oil also.

American companies own and orperate many of the Oilsands, they could increase production if they wanted to, but the cost is higher than the middle east oil. Are you willing to pay a higher price for your oil independence?
 
A

Anonymous

Guest
hypocritexposer said:
OT, Canada has lots of Heavy oil also.

American companies own and orperate many of the Oilsands, they could increase production if they wanted to, but the cost is higher than the middle east oil. Are you willing to pay a higher price for your oil independence?

Oh- I'm quite aware of that....But does that mean that just because you're a corporate giant you should sabatoge oil fields so that other companies that can efficiently obtain the oil can't use them-or US landowners/states can't get royalties- or lease up and hold zillions of acres of oil leases without doing exploration- or tapping them- or dropping them so others could..
These multicorporate oil conglomerates need to have a Teddy Roosevelt ride right thru them...
 

TexasBred

Well-known member
Oldtimer said:
hypocritexposer said:
OT, Canada has lots of Heavy oil also.

American companies own and orperate many of the Oilsands, they could increase production if they wanted to, but the cost is higher than the middle east oil. Are you willing to pay a higher price for your oil independence?

Oh- I'm quite aware of that....But does that mean that just because you're a corporate giant you should sabatoge oil fields so that other companies that can efficiently obtain the oil can't use them-or US landowners/states can't get royalties- or lease up and hold zillions of acres of oil leases without doing exploration- or tapping them- or dropping them so others could..
These multicorporate oil conglomerates need to have a Teddy Roosevelt ride right thru them...

OT, apparently you're totally ignorant about oil leases. I won't go into great detail but the do have expiration dates...some have renewal options with monies to be paid for same. You can't just lease and sit on it. You have to drill eventually or let the lease expire at which time any other company is more than welcome to attempt to lease the mineral rights. No royalties are EVER paid until their is production. As an oil company OR a royalty owner you would want the oil company to sell when oil is highest rather than give it away. There is no sabatoge...only prudent management with stockholders interest being looked after. But, if an oil company knows it has a very good lease with great potential they will form units, drill ONE well in each unit and that land is held by production as long as that one well is producing. When prices go up they may go back in an drill dozens of wells but they'll do it on their schedule...not on mine, yours or any state's demands. It cost millions to drill one well. These are publicly traded companies....not the Obama administration so millions do matter to them.
 
A

Anonymous

Guest
TexasBred said:
Oldtimer said:
hypocritexposer said:
OT, Canada has lots of Heavy oil also.

American companies own and orperate many of the Oilsands, they could increase production if they wanted to, but the cost is higher than the middle east oil. Are you willing to pay a higher price for your oil independence?

Oh- I'm quite aware of that....But does that mean that just because you're a corporate giant you should sabatoge oil fields so that other companies that can efficiently obtain the oil can't use them-or US landowners/states can't get royalties- or lease up and hold zillions of acres of oil leases without doing exploration- or tapping them- or dropping them so others could..
These multicorporate oil conglomerates need to have a Teddy Roosevelt ride right thru them...

OT, apparently you're totally ignorant about oil leases. I won't go into great detail but the do have expiration dates...some have renewal options with monies to be paid for same. You can't just lease and sit on it. You have to drill eventually or let the lease expire at which time any other company is more than welcome to attempt to lease the mineral rights. No royalties are EVER paid until their is production. As an oil company OR a royalty owner you would want the oil company to sell when oil is highest rather than give it away. There is no sabatoge...only prudent management with stockholders interest being looked after. But, if an oil company knows it has a very good lease with great potential they will form units, drill ONE well in each unit and that land is held by production as long as that one well is producing. When prices go up they may go back in an drill dozens of wells but they'll do it on their schedule...not on mine, yours or any state's demands. It cost millions to drill one well. These are publicly traded companies....not the Obama administration so millions do matter to them.

I am an oil lease property owner- and I'd like to see them drilling in this country- putting the money back into this country- instead of bankrolling the Arab princes- Islamic Mullahs- and Chavez----and not doing everything they can to sabatoge their competion, which only raises prices to all American consumers....
Bad enough that for the last 100 years these oil companies have been the driving force behind our foreign policy- to rape and pillage countries as we used our military might to take what they wanted- before dumping them by the wayside when we were finished-----but now it sounds like we are allowing them to do it to our own country...

Yep- we need a longterm energy plan- centered around bringing energy production back to being produced in the US- and so our foreign policy will no longer be decided by the Oil Cartels- both foreign and domestic...

"I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents."
~Major General Smedley Butler, US Marines-2 time Medal of Honor recipient
 

hopalong

Well-known member
Oldtimer said:
TexasBred said:
Oldtimer said:
Oh- I'm quite aware of that....But does that mean that just because you're a corporate giant you should sabatoge oil fields so that other companies that can efficiently obtain the oil can't use them-or US landowners/states can't get royalties- or lease up and hold zillions of acres of oil leases without doing exploration- or tapping them- or dropping them so others could..
These multicorporate oil conglomerates need to have a Teddy Roosevelt ride right thru them...

OT, apparently you're totally ignorant about oil leases. I won't go into great detail but the do have expiration dates...some have renewal options with monies to be paid for same. You can't just lease and sit on it. You have to drill eventually or let the lease expire at which time any other company is more than welcome to attempt to lease the mineral rights. No royalties are EVER paid until their is production. As an oil company OR a royalty owner you would want the oil company to sell when oil is highest rather than give it away. There is no sabatoge...only prudent management with stockholders interest being looked after. But, if an oil company knows it has a very good lease with great potential they will form units, drill ONE well in each unit and that land is held by production as long as that one well is producing. When prices go up they may go back in an drill dozens of wells but they'll do it on their schedule...not on mine, yours or any state's demands. It cost millions to drill one well. These are publicly traded companies....not the Obama administration so millions do matter to them.

I am an oil lease property owner- and I'd like to see them drilling in this country- putting the money back into this country- instead of bankrolling the Arab princes- Islamic Mullahs- and Chavez----and not doing everything they can to sabatoge their competion, which only raises prices to all American consumers....
Bad enough that for the last 100 years these oil companies have been the driving force behind our foreign policy- to rape and pillage countries as we used our military might to take what they wanted- before dumping them by the wayside when we were finished-----but now it sounds like we are allowing them to do it to our own country...

Yep- we need a longterm energy plan- centered around bringing energy production back to being produced in the US- and so our foreign policy will no longer be decided by the Oil Cartels- both foreign and domestic...

"I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents."
~Major General Smedley Butler, US Marines-2 time Medal of Honor recipient

You are really into the raping and pilligang arnt you oldtimer, you mention that a lot :roll: :roll:
 

aplusmnt

Well-known member
Oldtimer said:
Bad enough that for the last 100 years these oil companies have been the driving force behind our foreign policy- to rape and pillage countries as we used our military might to take what they wanted- before dumping them by the wayside when we were finished

That is a pretty strong anti American statement you made there! Maybe you should go on tour with Hillary and Obama around the world apologizing for us!

You are a worthless lying piece of Sh*t! No wonder your life is filled with failure.
 
A

Anonymous

Guest
aplusmnt said:
Oldtimer said:
Bad enough that for the last 100 years these oil companies have been the driving force behind our foreign policy- to rape and pillage countries as we used our military might to take what they wanted- before dumping them by the wayside when we were finished

That is a pretty strong anti American statement you made there! Maybe you should go on tour with Hillary and Obama around the world apologizing for us!

You are a worthless lying piece of Sh*t! No wonder your life is filled with failure.

Do you think General Butler was anti American ? Do you think he was lying?

I even heard some retired Generals testifying within the last month to the energy committee- that their entire careers in the military had been spent protecting the oil resources- and their beliefs that for way too long our foreign policy has been dictated by OIL......

"I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents."
~Major General Smedley Butler, US Marines-2 time Medal of Honor recipient
 

aplusmnt

Well-known member
Oldtimer said:
aplusmnt said:
Oldtimer said:
Bad enough that for the last 100 years these oil companies have been the driving force behind our foreign policy- to rape and pillage countries as we used our military might to take what they wanted- before dumping them by the wayside when we were finished

That is a pretty strong anti American statement you made there! Maybe you should go on tour with Hillary and Obama around the world apologizing for us!

You are a worthless lying piece of Sh*t! No wonder your life is filled with failure.

Do you think General Butler was anti American ? Do you think he was lying?

I even heard some retired Generals testifying within the last month to the energy committee- that their entire careers in the military had been spent protecting the oil resources- and their beliefs that for way too long our foreign policy has been dictated by OIL......

"I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents."
~Major General Smedley Butler, US Marines-2 time Medal of Honor recipient

That is the best you can do? Quote a General that became an anti war activist speaking profiting from such activism after retiring.

Do I think he was anti American, yea it seems he may have became that way after retiring. Or maybe he just became a disgruntled senile idiot. Who really knows the man fought back in the 1800's and retired long before WWII even happened.

I also could care less what a person thinks that felt the way he claimed he did and still kept doing it! No one forced him to be in the Military, so in my books he is one messed up individual and I have no respect for people like that! If he felt the way he did and kept doing it, then he is an EVIL person and deserved the unhappy life he obviously lived at the end!

So you think a quote from a man who fought in the 1800's justifies your claim that we rape and pillage countries?
 

hopalong

Well-known member
aplusmnt said:
Oldtimer said:
aplusmnt said:
That is a pretty strong anti American statement you made there! Maybe you should go on tour with Hillary and Obama around the world apologizing for us!

You are a worthless lying piece of Sh*t! No wonder your life is filled with failure.

Do you think General Butler was anti American ? Do you think he was lying?

I even heard some retired Generals testifying within the last month to the energy committee- that their entire careers in the military had been spent protecting the oil resources- and their beliefs that for way too long our foreign policy has been dictated by OIL......

"I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents."
~Major General Smedley Butler, US Marines-2 time Medal of Honor recipient

That is the best you can do? Quote a General that became an anti war activist speaking profiting from such activism after retiring.

Do I think he was anti American, yea it seems he may have became that way after retiring. Or maybe he just became a disgruntled senile idiot. Who really knows the man fought back in the 1800's and retired long before WWII even happened.

I also could care less what a person thinks that felt the way he claimed he did and still kept doing it! No one forced him to be in the Military, so in my books he is one messed up individual and I have no respect for people like that! If he felt the way he did and kept doing it, then he is an EVIL person and deserved the unhappy life he obviously lived at the end!

So you think a quote from a man who fought in the 1800's justifies your claim that we rape and pillage countries

If that is happening oldtimer is all for it, that is his fantasy!!!!!
EH?
 

TexasBred

Well-known member
I am an oil lease property owner- and I'd like to see them drilling in this country- putting the money back into this country- instead of bankrolling the Arab princes- Islamic Mullahs- and Chavez----and not doing everything they can to sabatoge their competion, which only raises prices to all American consumers....
Bad enough that for the last 100 years these oil companies have been the driving force behind our foreign policy- to rape and pillage countries as we used our military might to take what they wanted- before dumping them by the wayside when we were finished-----but now it sounds like we are allowing them to do it to our own country...

Yep- we need a longterm energy plan- centered around bringing energy production back to being produced in the US- and so our foreign policy will no longer be decided by the Oil Cartels- both foreign and domestic...

Then you should know better. Energy Plan...very easy. Government gets the hell out of the way and lets the professional lease, drill and sell oil at market prices. We could still greatly influence the price of oil worldwide if the US government would do this one thing.....supply and demand would be in control again........ Oil is not behind our foreign policy. Until recently the US had more oil than anybody in the developed world. We didnt' need anybody's oil.

In any business the name of the game is not only to sabatoge the competition but to get him completely out of the game if possible. You just do it very discretely. Now you should know that...You've been in politics. If not call barracko...he's one of the best at getting rid of the competition. :wink: :wink: :wink:
 
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