USA: Coalition Calls for Investigation of Environmental Impacts of Exxon/Mobil Merger

A national coalition of 42 religious and environmental groups today called
on the Federal Trade Commission (FTC) to conduct a review of the environmental impacts of merging the Exxon and Mobil oil companies. Final approval of this merger would create the largest oil company in the world. The Campaign ExxonMobil coalition filed comments today arguing that given the environmental records of both companies, the FTC is obligated to examine the environmental impacts of their merger, including the impact on global warming. The group also called on the FTC to examine the effects of the proposed 16,000 job cuts on health and environmental safety.

"Federal law and common sense dictate that before we create the worlds
biggest oil company we take a look at how the merger will affect the
environment and public health," said Peter Altman, National Coordinator of
Campaign ExxonMobil (CEM). "We must not allow the company that brought us
the Exxon Valdez oil spill to get even bigger without having some idea of
the environmental impacts."

Federal law requires an Environmental Impact Statement (EIS) be conducted
when proposing actions that may significantly affect the quality of the
human environment. To date, however, no environmental impact review of any
kind has been completed nor has it been suggested that one is in
consideration.

"Environmental Impact Statements are required for projects as small as
adding sand to beaches, or building footbridges across swamps. It is
disturbing that no environmental analysis has been proposed for the creation
of the worlds largest oil company," said CEM member Sister Pat Daly, of the
Dominican Sisters of Caldwell, New Jersey.

The comments submitted today note that one of the stated purposes of the
merger was to "meet the increased costs of exploration." Campaign
ExxonMobil asserts that any increased oil exploration would have impacts on
the environment and human health including: -- Damage to old growth frontier
forests in 22 countries -- Impacts to fragile coral reefs in 38 countries --
Damage to mangrove ecosystems in 46 countries -- Threats to indigenous
peoples on every inhabitable continent -- Increased air pollution in US
cities and subsequent contribution to global warming.

"The FTC has a legal obligation to do an Environmental Impact Statement when
the possible effects are as great as they are with the Exxon Mobil merger.
We think that few actions by the federal government could have a greater
impact on the environment than approving this merger." said Sanford Lewis,
the attorney who prepared the comments. "Ironically, it was a lawsuit
brought by Mobil and other oil companies in 1977 that established the
obligation of the FTC to prepare an EIS before approving this type of
merger.

Supporters of Campaign ExxonMobil are especially concerned with the
potential impact of the merger on global warming. With increased
exploration, production and consumption of fossil fuels, the production of
greenhouse gases will be continue to increase.

"The merger of Exxon and Mobil has an enormous potential to worsen the
situation regarding global warming", said Reverend Michael Crosby of
Milwaukee, Wisconsin. "We are very concerned about the merged companys
impact on global climate."

Concern about global warming was reflected in last Thursdays State of the
Union Address, in which President Clinton noted that, "The greatest
environmental challenge of the new century is global warming. The scientists tell us the 1990s were the hottest decade of the entire millennium. If we fail to reduce the emission of greenhouse gases, deadly heat waves and droughts will become more frequent, coastal areas will flood, and economies will be disrupted. That is going to happen, unless we act."

The Campaign also called on the FTC to examine the environmental and health
safety implication of job cuts resulting from the creation of ExxonMobil.
The company recently announced that it intends to cut 16,000 jobs as a
result of the merger. "How many of these positions would be maintenance or
safety related positions," asked Bill Somplatsky-Jarmon of the Presbyterian
Church, USA. "We know that shortages of staff in maintenance-related
positions often leads to safety and environmental problems."

The FTC originally opposed the merger of Exxon and Mobil. After
negotiations with the companies, a proposed settlement was agreed upon,
requiring the divestiture (sale or assignment) of approximately 2,431 Exxon
and Mobil gas stations. In addition, an Exxon refinery in California;
terminals; interests in a pipeline; Exxons jet turbine oil business and
other assets were to be sold before the merger would be approved.

If the merger goes through, the new corporation will have annual revenues of
over $165 billion and will rank as the number one corporate emitter of
greenhouse gases, producing more than 170 million tons of carbon a year.

The comments filed by Campaign ExxonMobil to the FTC can be viewed on the
organizations web site: http://www.campaignexxonmobil.org/

• 107 Energy