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That's the theory, but there are remarkably few consequences for oil companies that don't do the right thing, and even where there are nominally consequences, y
by scottlamb 6y ago
That's the theory, but there are remarkably few consequences for oil companies that don't do the right thing, and even where there are nominally consequences, you have to fight very hard for anyone to enforce them.
For example, in Iowa, if an oil pipeline spills, the oil company's damages are capped at something like $1M. IIRC that's in total across the state per spill, not per landowner; you can imagine costs to actually clean things up being far in excess of that. They're essentially allowed to externalize all the environmental/health/safety risk to the landowners, nearby residents and workers, the state, etc. And that's in a situation where the pipeline company was allowed to seize use of the land under eminent domain. [1] So the landowners had no choice and will have essentially no recourse if there are problems.
[1] My parents fought this seizure and lost in the Iowa Supreme Court. They're appealing to the US Supreme Court. https://www.desmoinesregister.com/story/news/crime-and-courts/2019/05/31/iowa-supreme-court-dakota-access-pipeline-iowa-utilities-board-sierra-club-lawsuit-appeal/1286508001/ https://www.desmoinesregister.com/story/news/crime-and-court...
- flyGuyOnTheSly 6y agoJesus that sounds horrible. You and your family have my sympathies. That is certainly not right or just. Good luck in your legal battles!
- scottlamb 6y agoThanks! To be clear: while the seizure actually happened, no spill has (yet) happened on their land, and I hope that part stays hypothetical. There has been reduced crop yields, lowered resale value, etc.