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Michigan Attorney General Mike Cox Announces ExxonMobil and Petco Contamination Settlement

Companies to Pay More Than $2 Million to Michigan

LANSING, Mich., July 11 /PRNewswire/ -- Attorney General Mike Cox announced today a settlement recovering costs of more than $2 million for the clean up of 92 Michigan oil and gas wells once owned by ExxonMobil and Petco. The Michigan Department of Environmental Quality (MDEQ) sought recovery of the costs incurred to restore the sites after the wells were abandoned in 1997.

"This settlement sends a message that contamination will not be tolerated in Michigan," said Cox. "Companies are responsible for the clean-up of their sites, and we will continue to hold corporations responsible for removing harmful substances from the environment."

The oil and gas wells involved began production in the 1950s and 1960s when Humble Oil and Gas Company, a predecessor to ExxonMobil Corporation, received permits from the State to drill and operate the wells. The wells were sold in 1990 and were operated by Petco Petroleum Company, which abandoned the wells in 1997.

After Petco and ExxonMobil failed to take action to cleanup the sites, MDEQ plugged the oil wells and restored the soil at each of the sites, work that was completed in 2000. The Attorney General sought recovery of the costs incurred in the cleanup from ExxonMobil, Petco, and personally from Jay D. Berman, President of Petco. A total settlement of $2,050,000 was reached and a judgment was entered by the Ingham County Circuit Court on July 6, 2005.

The settlement continues the Attorney General's commitment to protecting Michigan's environment. Cox's Environment, Natural Resources, and Agriculture Division (ENRA) has collected more than $25 million in settlements on behalf of Michigan residents since 2003.

Source: Michigan Attorney General

CONTACT: Allison Pierce of Michigan Attorney General's office,
+1-517-373-8060

Web site: http://www.michigan.gov/ag