How Much Will the Arkansas Spill Cost ExxonMobil?

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ExxonMobil (NYSE:XOM) is being sued by the Arkansas Attorney General and the federal government over a pipeline spill that occurred in March which sent oil flowing through the small town of Mayflower.

The suit claims that Exxon was storing oil and oil-contaminated clean-up gear alongside a highway without a permit. Exxon is facing civil penalties related to inappropriate waste storage and violating state and federal clean water and air laws. The lawsuit is seeking $45,000 per day for those violations, plus other damages, but did not go so far as to accuse the company of negligence or willful misconduct.

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The spill occurred March 29 when an estimated 3,500 to 19,000 barrels of heavy crude came gushing out of a burst underground pipe carrying the product from Canada. Oil spilled into the streets and properties of Mayflower, a small town northwest of Little Rock. After the incident, 22 homes had to be evacuated and residents have not yet been able to return.