WASHINGTON — Millions of consumers and their water utilities in 25 states will be forced to pay billions of dollars to remove a toxic, foul-smelling gasoline additive from drinking water under a plan to prohibit water pollution lawsuits against oil and chemical companies.
But the pollution liability waiver, which House Majority Leader Tom DeLay (R-TX) and other lawmakers are pressing to include in pending energy legislation, will primarily benefit a handful of large oil refiners in just one state -- Texas -- where 75 percent of the pollutant, known as MTBE (methyl tertiary butyl ether), was produced last year.
The prospective winners and losers in the MTBE controversy, which is coming to a head this week in Congress, were presented in a new analysis made public today by the Environmental Working Group (EWG). The analysis is based on a computer review of water contamination data from the oil industry as well as state and federal sources.
"The liability waiver for MTBE polluters is the last big gusher for the Texas oil industry," said Ken Cook, president of EWG. "This is an industry that knowingly polluted the tap water of millions of Americans. Courts have been finding them liable. So they've gone to high-placed friends in Washington to rig the legal system in their favor—which will save them billions in cleanup costs."
Oil refiners are pressing Congress to prohibit any "defective product" lawsuits filed after Oct. 1 of this year because at least 1,500 communities have already reported MTBE contamination problems, and internal company documents are coming back to haunt the industry in court. EWG has posted internal oil industry documents and court testimony on its website (www.ewg.org) that refute pervasive oil company claims that they were "forced" by EPA air pollution rules to add MTBE to gasoline, and that MTBE producers were unaware of the chemical's extreme propensity to contaminate water supplies.
EWG listed 25 states with the greatest number of water sources that have been polluted by MTBE, which can render water undrinkable at concentrations as low as two parts per billion. The additive is classified as a possible human carcinogen. The listing was based on an analysis of water system contamination data and obtained from the U.S. Geological Survey, which monitors pollution in rivers, lakes, streams and groundwater.
Oil companies have pressured Midwestern legislators — some of whose states have MTBE contamination - to support the MTBE liability waiver in exchange for a new mandate to use corn-based ethanol as a fuel additive.
"A number of Midwestern states already have serious MTBE contamination problems. There's every reason to pursue expansion of ethanol use while still holding MTBE producers liable for the pollution they caused in the Midwest," Cook said. "And, it is doubly unfair to force dozens of states to pay the higher cost of gasoline with ethanol, and also force them to pay for MTBE cleanup instead of Texas oil refiners."
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Winners
Texas oil refineries that produced MTBE in 2002.
MTBE (methyl tert-butyl ether) PRODUCER | CAPACITY* |
Amerada Hess, Port Reading, N.J. |
1,700 |
Belvieu Environmental Fuels, Mont Belvieu, Tex. |
14,800 |
BP, Carson, Calif., Whiting, Ind.; Yorktown, Va. |
6,200 |
ChevronTexaco, El Segundo, Calif.; Pascagoula, Miss.; Richmond, Calif. |
6,000 |
CITGO, Corpus Christi, Tex. (two units); Lake Charles, La. |
6,950 |
Coastal Chem, Cheyenne, Wyo. |
4,000 |
Conoco, Lake Charles, La.; Ponca City, Okla. |
2,900 |
ConocoPhilips, Sweeny, Tex. |
3,000 |
Crown Central Petroleum, Pasadena, Tex. |
2,000 |
EGP Fuels, La. Porte, Tex. |
15,000 |
Equistar Chemicals, Channelview, Tex. (two units); Chocolate Bayou, Tex. |
16,300 |
Exxon, Baton Rouge, La.; Baytown; Tex., Beaumont, Tex. |
23,300 |
Global Octanes, Deer Park, Tex. |
12,500 |
HOVENSA, St. Croix, V.I. |
2,400 |
Huntsman Chemical, Port Neches, Tex. (two units) |
27,200 |
Koch, Corpus Christi, Tex. |
1,800 |
Lyondell, Houston, Tex. |
4,000 |
Lyondell-CITGO Refining, Channelview, Tex. |
30,000 |
Marathon Ashland, Catlettsburgh, Ky.; Detroit, Mich.; Robinson, Ill. |
5,740 |
Motiva, Convent, La.; Delaware City, Del. |
4,800 |
Shell, Deer Park, Tex.; Norco, La. |
11,000 |
Sunoco, Marcus Hook, Penn. |
2,500 |
Tesoro Petroleum, Martinez, Calif. |
2,500 |
Texas Petrochemicals, Houston, Tex. |
24,000 |
Valero Energy, Benicia, Calif.; Corpus Christi, Tex.; Dumas, Tex.; Houston Tex.; Krotz Springs, La.; Texas City, Tex. |
28,600 |
Total |
259,190 |
Source: Data from The Innovation Group and published in the Chemical Market Reporter. http://www.the-innovation-group.com/ChemProfiles/MTBE.htm
Losers
States where more than 10,000 consumers are served by public water systems reporting MTBE contamination. (Served populations do not include systems with abandoned water wells or consumers getting water from private wells.)
In 25 states, MTBE contaminates water systems serving more than 10,000 people.
|
Population served by MTBE-contaminated water system(s) | Rank |
California |
30,989,000 |
1 |
Massachusetts |
2,212,000 |
2 |
New Jersey |
2,120,000 |
3 |
Pennsylvania |
978,000 |
4 |
Texas |
919,000 |
5 |
Florida |
629,000 |
6 |
Arkansas |
486,000 |
7 |
New York |
455,000 |
8 |
New Hampshire |
390,000 |
9 |
Alabama |
282,000 |
10 |
Wisconsin |
229,000 |
11 |
Illinois |
218,000 |
12 |
Maryland |
195,000 |
13 |
Indiana |
192,000 |
14 |
Rhode Island |
84,000 |
15 |
Nevada |
83,000 |
16 |
Delaware |
78,000 |
17 |
Michigan |
66,000 |
18 |
South Carolina |
60,000 |
19 |
Maine |
57,000 |
20 |
New Mexico |
39,000 |
21 |
Alaska |
36,000 |
22 |
Minnesota |
17,000 |
23 |
Missouri |
17,000 |
24 |
Nebraska |
11,000 |
25 |
Source: Environmental Working Group. Compiled from state government drinking water contamination data.