Government
Jul. 23, 2002
City Likes Look of Water Cleanup Agreement
LOS ANGELES - An agreement with Exxon Mobil and Chevron Texaco to clean up MTBE contamination in the city of Santa Monica's drinking water wells works for the public as well as business interests, an attorney with the city said.
The settlement comes two years after the city of Santa Monica filed suit against seven major oil companies claiming that gasoline containing Methyl-tertiary Butyl Ether leaked from underground storage tanks at area gas stations and seeped into the city's Charnock drinking water well field in West Los Angeles. The compound, which is fast-spreading and dangerous, can make drinking water smell like turpentine, even in small amounts.
Under a proposed agreement, which is subject to approval by an Orange County Superior Court judge, Exxon and Chevron will fund the construction and operation of a water treatment facility. The two oil companies also will make a $30 million nonrefundable payment to the city, which can be used for any purpose.
"It was an ingenious use of a sliding scale settlement by these particular companies and it will work [to] everybody's advantage," Assistant City Attorney Joe Lawrence said. "The city will be able to move on and make significant steps to clean up the drinking water."
The amount the oil companies will pay for the treatment center will fluctuate over the years, depending on when construction starts and how long it takes to clean up the well water, Santa Monica City Attorney Marsha Moutrie said.
The city estimates that it will probably take decades to clean up the water and a total price tag in excess of $200 million, Lawrence said.
As part of the agreement, Exxon and Chevron will get refunds if there is a higher settlement with or judgment against Shell Oil, another defendant in the case.
In 1995, the city discovered that the gasoline additive, better known as MTBE, was contaminating its drinking water wells in fields the city had owned for more than 80 years, Moutrie said.
The city shut down the wells and uses water supplied by the Metropolitan Water District. Also using the Charnock wells was the Southern California Water Company, which supplies water to the businesses and residents of Culver City.
MTBE has been used in U.S. gasoline since 1979 as a lead replacement to enhance octane, which helps stop engine knocking and pinging.
Since 1992, MTBE has been used in higher concentrations to fulfill oxygen requirements in the 1990 Clean Air Act Amendments. Oxygen helps gasoline burn cleaner, reducing emissions.
Leslie Simmons
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