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State agency asks Exxon to pay $1.8 million for 2013 Ark. oil spill

The Arkansas Game and Fish Commission asked Exxon Mobil Corp. to pay $1.8 million for to a 2013 oil spill in Mayflower, Ark.

The agency proposed the settlement in an Aug. 7 letter, with the funds to be directed for wildlife restoration and to compensate the government for damage caused when the Pegasus pipeline ruptured.

The settlement also asks the oil giant to pay for the state's purchase of 80 acres near Lake Conway "to facilitate monitoring and management" of the property. The letter does not provide an estimated cost for the land.

In 2017, the oil major settled a lawsuit with dozens of homeowners whose properties were damaged after the 20-inch-diameter pipeline that carries crude from Illinois to the Texas Gulf Coast leaked oil.

At the end of 2015, the U.S. Pipeline and Hazardous Materials Safety Administration handed the company a civil penalty of about $2.6 million related to the Pegasus incident.

Although PHMSA acknowledged that the pipe failed because of defects that were introduced when the piece was manufactured, the administration said Exxon Mobil's failure to notice and correct the defects reflected poor integrity management and constituted safety violations.

In addition to that penalty, the administration ordered the company to take a number of actions to comply with pipeline safety regulations.