Expertise in earth sciences is very important to many modern businesses, especially those that operatein petroleum production or transportation, industrial manufacturing, or different industries which release waste or by products into the surrounding airor water.

The fact that massive punitive legal damages have been enforced by courts to large corporations such as Mobil Exxon, Union Carbide, and Pacific Gas and Electric brings notice upon businesses which their very survival may well depend upon in which way their employees deal with earth science related incidents

In order to implicate the much importance of the earth science studies to modern corporate businesses, a study of the massive 1989 oil spill incident in Prince William Sound and how it affected Mobil Exxon would be of much use. The environmental damage was incredibly much, and initial public anger against the corporation was at very high levels, yet Exxon Mobil succeeded in weathering the storm and continue to do business, in large part because of the efforts of its own earth sciences people.

The problems all began on March 24, 1989 at 4 minutes after midnight, when the enormous oil super tanker Exxon Valdez struck a reef hidden under the pristine surface of Alaska’s amazing Prince William Sound and began spilling massive amounts of crude oil into the sea. In the Alaskan darkness that spring night an environmental nightmare began that changed not only Prince William Sound itself, but the entire world, especially the business world.

In the first weeks right after the disaster, upon the advice of their own earth sciences people, who understood all very well how much environmental damage might ensue, Mobil Exxon volunteered to spend whateverall the money was necessary on cleanup efforts and assessments of environmental damages after the accident and before the settlement. Over 2 billion dollars was quickly spent by Mobil Exxon on these efforts, and the corporation’s PR people used every opportunity to publicize the amount being spent, and to repeatedly mention that it was voluntary, so the public would be aware of that fact and appreciate that Mobil Exxon was meeting its responsibilities to the public for the damage done to the environment.

Although all the efforts, nothing could stop the flood of lawsuits which resulted from the spill. After anightmare thirty months of devastating negative publicity for Mobil Exxon, and extremely serious financial losses, a legal settlement agreement was finally reached on October 8, 1991 between the plaintiffs—the State of Alaska and the US government—and Mobil Exxonattorneys on both criminal charges and civil damage claims stemming from the incident.

In settlement of civil charges, Mobil Exxonagreed to pay Alaska and the United States over nine-hundred million dollars over a ten year period. This money would be used for environmental and wildlife restoration and would be administered by six government trustees; 3 of them federal appointees, and the other 3 state appointees.

In settlement of criminal charges, it was agreed that Mobil Exxon would pay two-hundred and fifty million dollars. Two restitution funds of fifty million dollars each were established, one under state control and another one under federal authority. Although there was much opposition from many Alaskans, one-hundred and twenty-five million dollars of the balance was forgiven due to Mobil Exxon’s cooperation during the cleanup, and because of the upgraded and highly-publicized safety procedures Mobil Exxon earth sciences department had designed to prevent a reoccurring similar event. The remaining 50 million dollars was divided between the Victims of Crime Act account and the North American Wetlands Conservation Fund.

But another huge setback was in store for Exxon. On September 16, 1994, an angry jury in a United States Federal courtroom returned a stunning five billion dollar punitive damages verdict against the corporation. Mobil Exxon attorneys have fought this judgment in appeal after lengthy appeal over the last 7 years, and on November 7, 2001 won a major victory when United States Court of Appeals justices threw out the 1994 punitive damages verdict.

But Mobil Exxon has suffered mightily since the Exxon Valdez went aground in Prince William Sound that fateful night in 1989, and it is not an exaggeration to say that the very existence of the corporation has been at stake. Any business, no matter how large or small, is at the mercy of public approval, for it needs public approval to sell its product. And in Mobil Exxon’s case, public approval has been very much dependent upon what the corporation’s earth sciences people have been able to say and do to persuade the public that the environmental damage to the Alaskan coastline is nowhere near as damaging as other earth scientists have claimed.

In the twelve years since the oil spill, Mobil Exxon has relied heavily upon their own earth sciences personnel, and hired outside earth sciences consultants in order to defend themselves against charges which they are liable for billions of dollars in environmental damage to the ecosystem of Prince William Sound.