Exxon Slapped With $1.7M Fine Over Yellowstone Oil Spill

By Sean McLernon (March 26, 2013, 1:47 PM EDT) -- The U.S. Department of Transportation on Monday hit Exxon Mobil Corp. with a $1.7 million fine over a July 2011 pipeline failure that dumped more than 60,000 gallons of oil into Montana's Yellowstone River after concluding the oil giant failed to effectively address pipeline safety risks.

The DOT's Pipeline and Hazardous Materials Safety Administration said that Exxon did not prepare for seasonal flooding conditions that put its Silvertip pipeline at risk of a breach, nor did it implement measures that would have prevented a spill from reaching local waters.

"The risk of flooding on the Yellowstone River was a known threat...

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