Natural Resources Restoration: Status of Payments and Use of Exxon Valdez Oil Spill Settlement Funds
RCED-98-236
Published: Aug 13, 1998. Publicly Released: Sep 11, 1998.
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Highlights
Pursuant to a congressional request, GAO reviewed the management of the Exxon Valdez settlement funds, focusing on: (1) how much Exxon had paid, to whom the funds had been disbursed, and how the money had been used; (2) whether the Trustee Council has funded activities that may not be consistent with the agreement and the council's implementing policies; (3) how the prices paid for land acquisitions compare with government land appraisals; (4) if the public participation process for the habitat acquisition program is similar to that used for other restoration actions; and (5) whether the trust funds are being managed to maximize the overall returns.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Exxon Valdez Trustee Council | To increase the amount of settlement funds available for future restoration activities, the Trustee Council should review ways such as those identified by the Trustee Council's independent auditors to minimize management fees and maximize net returns without compromising the security and reliability of the investment returns. |
Closed – Implemented
In November 1999, Congress passed Public Law 106-113 enabling the Trustee Council to deposit Exxon Valdez settlement funds in accounts other than the U.S. Treasury. In July 2000, the Trustee Council voted to transfer existing funds and deposit future funds in an account administered by the Alaska Department of Revenue. In October 2000, the Trustee Council began transferring the funds from the existing accounts to the account administered by the state of Alaska. Final settlement funds from Exxon to the Trustee Council was transferred on September 1, 2001, resulting in minimizing management fees and maximizing net returns.
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Topics
Claims settlementEnvironmental monitoringFines (penalties)Funds managementInternal controlsJudicial remediesOil pollutionOil spillsReal estate purchasesTrust funds