So this afternoon one of the investment sites I follow published a link to this article: Shell, Exxon Ordered to Pay Groningen Earthquake Compensation...
So this afternoon one of the investment sites I follow published a link to this article: Shell, Exxon Ordered to Pay Groningen Earthquake Compensation
It seems that a joint venture of Royal Dutch Shell and Exxon Mobile called NAM (Nederlandse Aardolie Maatschappij BV) has been pumping natural gas from the Groningen gas field. This resulted in a gradual subsidence of the gas bearing layer and a continuing series of earthquakes:
Earthquakes in the region began in 1991, and hundreds have been recorded in the subsequent period; a total of 119 quakes were recorded in 2013 alone.
The joint venture between the two companies has been ordered to compensate property owners who have suffered damage, including a decrease in property value:
The court said NAM is responsible for earthquakes in the northern province of Groningen and that these have led to a decline in home values of "several percent." Homeowners should therefore be compensated even when they are not planning to sell their property, it said, adding "there is no reason not to do it now."
But here's the thing that you sure as heck don't see here in the USA:
NAM, which has acknowledged responsibility for a rise in earthquakes in the area, said it would study the ruling and consider any further steps. So far, the company has set aside EUR1.2 billion ($1.4 billion) in part to compensate homeowners for damages to their property.
(Emphasis mine)
Congratulations to the Dutch court, the Dutch people as well as to RDS and XOM for owning up to their responsibilities. Now let's see some of that over here.