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Rhode Island files suit against oil companies

Oxygenating chemical MTBE, discovered in water, makes supply undrinkable

The state of Rhode Island filed suit against 34 oil-producing companies Sept. 6, arguing that the entities contributed to extensive contamination of the chemical MTBE — methyl tertiary butyl ether — in groundwater across the state.


MTBE is distinguished by its unpleasant taste and odor as well as its ability to render water sources undrinkable even at low levels of contamination. At high concentrations, the chemical is a possible human carcinogen and has been known to cause cancerous developments in animals at very high levels, according to the American Cancer Society.


Soluble in water, MTBE has been known to leak from underground storage tanks after which it “spreads very far and wide very quickly,” making it “very difficult to remove,” said Lint Barrage, assistant professor of economics and environmental studies.


The chemical was manufactured to oxygenate gasoline to a level that passed Clean Air Act requirements and was widely used in the early 1990s. But MTBE fell out of favor after only a few years when people noticed it was contaminating water sources and sickening those who came into contact with high doses of the chemical. By 2005, it had been banned in half of all American states, and Rhode Island outlawed the chemical in 2007.


“There was never a rule that everyone had to use MTBE,” Barrage said, adding that MTBE was not the sole option for cities to oxygenate their gasoline if it did not meet air quality standards. She explained that many Midwestern states chose to explore ethanol as a solution for oxygenating their gasoline, while most states in New England chose MTBE, the cheaper alternative.


“Ironically, all of this came out of an air quality regulation,” Barrage said, adding that “some companies chose to meet those standards by using a chemical that negatively affects water quality.” Considering this, it is vital that entities like the Environmental Protection Agency and the U.S. Food and Drug Administration are funded consistently to ensure that research on chemical alternatives, pollutants and additives is ongoing, Barrage said.


Considering most contaminations began to occur years ago, the state has already remediated a number of previously polluted sites, said Amy Kempe, public information officer for Rhode Island Attorney General  Peter Kilmartin.“There have been numerous contaminations throughout Rhode Island, some small and some larger, like in Pascoag,” she added, referencing one of the most well-known cases in the state.


The Pascoag episode began with the discovery of MTBE in public drinking water in September 2001. It was determined that the chemical had been leeching from a singular gas station, necessitating a remediation effort that would last for more than a decade and remove 3,100 gallons of gasoline from groundwater reserves. A class action suit brought against ExxonMobil in that instance resulted in a $7 million settlement for residents affected by the contamination.


In filing suit, the state argued that oil companies were liable for violating the Resource Conservation and Recovery Act by not taking all necessary precautions when handling underground storage tanks of the chemical, resulting in contamination. In addition, the companies are held liable for marketing and manufacturing a deficient product that they knew would contaminate groundwater resources.


The state hopes to recover compensatory damages equal to the cost of investigation, cleanup and prevention of MTBE contamination. The state is seeking punitive damages in the suit, reflective of the circumstances caused by oil producers’ “willful, wanton, malicious, oppressive, fraudulent … and outrageously reprehensible conduct,” according to the text of the lawsuit.


While the attorney general maintains control over the lawsuit, the state is joined by Baron and Budd, P.C. and Weitz and Luxenberg, P.C., two law firms familiar with environmental lawsuits specifically dealing with MTBE contamination. The two firms together also facilitated a $423 million settlement between oil-producing companies and 153 public water providers in 20 states in 2008.

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