New Jersey governor Chris Christie’s proposed settlement deal with Exxon Mobil Corp. took everyone by surprise on Thursday, leaving environmental groups dumb-founded and legislators shocked. As a state judge was nearing a decision on the damages Exxon was to pay, Gov. Christie’s administration intervened, agreeing to accept a paltry $250 million of the $8.9 billion being asked in the lawsuit.
New Jersey has been involved in a lawsuit with Exxon Mobil since 2004 over damages caused by the company’s Bayway and Bayonne refineries that resulted in contamination and the loss of use of 1,500 acres of wetlands, meadows, and waterways in the northern part of the state.
Several years ago, a state judge ruled Exxon Mobil was liable for the damages, and causing a public nuisance. Last year, a different judge heard evidence relating to the damages but had not decided on a settlement. Then in February of this year, attorneys from both sides asked the judge in a letter to hold off on a ruling because a settlement had been reached. The state had been asking all along for $8.9 billion in damages, an amount lawyers for Exxon called “unreasonable.”
What’s behind the ridiculously paltry amount New Jersey is asking from Exxon Mobil?
Several things are going on in Gov. Christie’s state. A lot of the coverage has emphasized Exxon Mobil’s very generous donations to the Republican Governors Association. In 2014, Exxon donated $500,000, the same year Christie was chairman, and the case against Exxon was in trial. Some people might call this “a conflict of interest.”
According to federal filings, Exxon’s donations have far exceeded what the company give the Democratic Governors Association. But a spokesman for Exxon says the amount of the donations have nothing to do with Christie being chair of the GOP group, and they actually reflected a number of gubernatorial races going on at that time. The spokesman also said they give more to the Republicans because they generally agree with the GOP on policy.
Another move by Christie is also raising questions. Christie pushed through a law in 2014 that dealt with how damages settlements would be used. The law says any funds beyond the first $50 million collected in damages shall go to the state’s general fund. So if the proposed settlement goes through before the end of the state’s fiscal year on June 30, Christie will have $200,000 to put into the state budget to defray the huge pension bill. The pension fund shortfalls have dragged the state’s credit rating down, and the governor’s numbers at the polls.
It doesn’t take a rocket scientist to figure out that a measly $50 million won’t begin to put a dent in the $2.6 billion needed for an even basic cleanup of the 1,500 acres of ruined land. There is little doubt that Governor Christie’s office is behind the deal, and it’s a dirty deal no matter how anyone looks at it. And think about this, if this is what he ‘s doing to his state, why would anyone think he would do any better if he were to become the president?