Environmental Activists Can't Intervene in Exxon Case, Judge Rules

By Neil Haggerty 

A judge rejected on Monday an attempt by environmental activists and a state lawmaker to intervene in New Jersey Gov. Chris Christie's decision to settle a long-standing contamination case with Exxon Mobil Corp. for $225 million, a significant setback in the effort to scuttle the deal.

Superior Court Judge Michael Hogan ruled that the interests of the environmental groups and Sen. Raymond Lesniak were adequately represented by the state Department of Environmental Protection, the original party in the 11-year dispute.

The environmental groups contend the proposed $225 million settlement doesn't sufficiently cover the damage caused by Exxon's refineries to an area spanning more than 1,500 acres of wetlands, meadows and waterways near Bayonne. The state initially sought $8.9 billion from Exxon.

The groups and Sen. Lesniak "have done nothing to overcome the presumption of adequate representation that arises when they share the same ultimate goal with an original party," Judge Hogan wrote in his decision.

A spokesman for the Department of Environmental Protection said, "We're pleased that this decision will allow consideration of the proposed settlement to move forward, while providing a mechanism for input from those who wish to be heard."

Jeff Tittel, director of the New Jersey Sierra Club, described the decision as a loss but pledged to continue to fight.

"We are looking to appeal this decision," he said.

Officials have said the settlement would be the largest environmental settlement in the state's history and it would ensure that Exxon couldn't appeal.

The groups looking to intervene have accused the state of not acting in the best interest of New Jersey residents. The settlement amounts to 3% of the amount the state initially sought from Exxon.

A spokesman for Exxon declined to comment. The company opposed the environmental groups' intervention in the case.

The environmental groups said the judge's decision leaves thousands of state residents who objected to the settlement voiceless.

"The affected New Jersey communities deserve a voice in this fight," Natural Resources Defense Council Attorney Margaret Brown said in a news release. "Gov. Christie and his administration should not let this multibillion-dollar oil corporation off the hook for the damages it rightfully owes the people of this state--and can well afford to pay."

Mr. Lesniak said Monday that he intends to file a brief with the judge, who will decide whether to approve the settlement. "I'm optimistic that the judge is going to reject the settlement," he said.

Write to Neil Haggerty at [e-mail]

Access Investor Kit for Exxon Mobil Corporation

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US30231G1022

Subscribe to WSJ: http://online.wsj.com?mod=djnwires