New York v. ExxonMobil — the climate fraud case

Global warming — the rise in the atmosphere’s average temperature since pre-industrial times — forms the background to the State of New York v. the ExxonMobil Corporation lawsuit.

Chart of ice core data showing CO2 levels from year 1000 to1990’s
Ice core data showing CO2 levels from year 1000 to 1990’s. Image: CSIRO

Before 1800, the concentration of CO2 in the atmosphere fluctuated around 280 ppm (see chart above). The level of CO2 began its steep rise around 1800 due to the heavy use of coal during the industrial revolution. By the 1990’s, the continued burning of fossil fuels had  raised the CO2 level to 350 ppm. Today the level exceeds 411 ppm (NOAA-ESRL, March 2019).

CO2 in the atmosphere traps heat from the sun, a result of the greenhouse effect. As the level of CO2 increases, so does the atmospheric temperature. The Paris Climate Agreement set a goal of “holding the increase in the global average temperature to well below 2°C (3.6°F) above pre-industrial levels.” As of this date (March 2019), the average increase has already exceeded 1°C.

ExxonMobil does not deny that global warming is occurring. Nor does it deny that burning fossil fuels is the major cause of it. It is also fully aware of the various government actions being taken worldwide to limit the burning of fossil fuels. What the company is supposed to do is incorporate that knowledge into its financial statements so that investors can judge for themselves whether or not to risk their money. This requires that the company anticipate future government actions, such as, for example, the imposition of carbon taxes, and calculate their financial effects. What the lawsuit alleges is that the company lied to its investors about the potential impact of such actions. In other words, it deliberately underestimated the risks.

The New York Attorney General in her filing of October 24, 2018, against the company puts it more strongly. Exxon, the filing says, perpetrated a “longstanding fraudulent scheme … to deceive investors and the investment community … concerning the company’s management of the risks posed to its business by climate change.” Considering that the AG’s office spent three years investigating Exxon before charging it with fraud, you can bet that whatever the company is accused of doing, it won’t be easy to explain or prove in court.

Which of the parties involved in this lawsuit deserves support or sympathy? None of them. Not the investors. Not the Attorney General’s office. Certainly not ExxonMobil. Whether or not Exxon is found guilty of fraud, we know that it is guilty of pushing its product onto the market by any means it can get away with including: heavy lobbying of government; ladling out election financing to friendly politicians; feeding money to pro-industry organizations (propaganda outlets).

The internet provides investors with the same global warming information available to the Exxon Corporation. The risks of investing in the fossil fuel industry are plain to see. Signs of the industry’s slow but inevitable decline are already evident. Just how slow is anybody’s guess. Spreadsheets from corporate accountants will not aid in the guessing. The risk-free option is not to invest in the industry.

According to Bloomberg News (Oct. 24/18), the State of New York holds about $1.5 billion worth of Exxon stock. The investment includes “the state’s common retirement fund, with more than 1 million employees and retirees, and the New York State Teachers Retirement System, with nearly half a million members.” Considering that New York is a member of the U.S. Climate Alliance, and therefore supposedly committed to upholding the objectives of the 2015 Paris Agreement on limiting global warming, it strikes me as odd, hypocritical even, that the state retains its investment in a fossil fuel company, particularly one that’s being sued by its own Attorney General.

Some people say that the Trump administration’s opposition to the Paris Climate Accord, and its total support of the fossil fuel industry, should make it unnecessary for business, or the courts, or investors, to take global warming seriously. Those people are wrong. Dealing with the Trump Administration is like dealing with a monkey in a dining room leaping about spilling drinks, snatching food off plates, shitting on the table cloth. The prudent diner will wait until the monkey is removed before ordering a meal.

Gatehouse entrance to ExxonMobil headquarters, Irving TX
Gatehouse entrance to ExxonMobil headquarters, Irving TX. Image: Google

New Bridge across the Tappan Zee

“In the bosom of one of those spacious coves which indent the eastern shore of the Hudson, at that broad expansion of the river denominated by the ancient Dutch navigators the Tappan Zee, and where they always prudently shortened sail and implored the protection of St. Nicholas when they crossed, there lies a small market town or rural port, which by some is called Greensburgh, but which is more generally and properly known by the name of Tarry Town.”
— From: The Legend Of Sleepy Hollow by Washington Irving (1820)

Image of new Tappan Zee Bridge over the Hudson River
The Tappan Zee/Governor Mario M. Cuomo Bridge. Image produced by American Bridge Co.

The new Tappan Zee Bridge — officially named the Governor Mario M. Cuomo Bridge — crosses the Hudson River at Tarrytown, Westchester Co., New York, about 24 miles north of Midtown, Manhattan. The twin cable-stayed bridge replaces the original Tappan Zee Bridge, which was built during the Korean War. Opened in 1955, the old bridge was designed to carry 100,000 vehicles a day and last fifty years. By the year 2000, it was carrying 140,000 vehicles a day and had started to fall apart. The collapse of the I-35W bridge in Minneapolis in November 2008, injected a sense of urgency into the planning process for a replacement. The replacement project was added to New York’s list of projects eligible for federal funds in 2012 and “fast tracked” for approval by the Obama Administration (a concept foreign to the present Trump administration).

The design/build contract was awarded to a consortium comprised of Fluor Corp., American Bridge Co., Granite Construction, and Traylor Bros Inc. The bridge features a superstructure containing eight general traffic lanes, plus four emergency lanes (four + two, west bound; four + two, east bound). It also features a shared-use path for bikes and pedestrians.

Diagram of new Tappan Zee Bridge showing dimensions
Diagram of new Tappan Zee Bridge with dimensions. Image from American Bridge Co. website

The new bridge was built parallel to the old Tappan Zee bridge. The last of the old bridge’s structure was brought down by explosives on January 15th. The photo below, taken the following day, shows NY Governor Andrew Cuomo surveying the new bridge and the remains of the old bridge. Parts of the old bridge can be seen lying in the river immediately to the left of the new bridge.

NY Governor Andrew Cuomo surveying the new Tappan Zee Bridge from the air
Governor Andrew Cuomo surveying the new and old Tappan Zee Bridges. Photo credit: Melissa DeRosa via Twitter, Jan 16

The new bridge is operated by the NY State Thruway Authority. The Authority plans to introduce electronic (cashless) tolling later this year. This will enable tolling at highway speeds. Overhead surveillance equipment will read license plates and identify types of vehicles as they pass, then automatically send bills to the registered owners. The alternative for drivers who cross the bridge frequently will be to pay in advance by purchasing some sort of electronically readable sticker.

It’s impossible to see a bridge by driving across it. To see the new Tappan Zee Bridge, exit the I-87 via Broadway and head north into Tarrytown. Make your way to Pierson Park on the water front. You’ll find a scenic river walk there. Parking is available off W Main Street, beside the Tarrytown Recreation Community Center and close to Pierson Park (circled in yellow on the satellite image below).

Satellite image of Tappan Zee Bridge , New York
Satellite image of Tappan Zee Bridge. Pierson Park river view path area circled in yellow. Google Maps.

Trump mulls funding for new Hudson River Rail Tunnel, but continues to balk

Photo showing scene inside Penn Station, NYC
Inside Pennsylvania Station, New York City

Every weekday, about 450 trains pass through the Hudson River Rail Tunnel carrying New Jersey commuters to and from NYC’s Penn Station, as well as Amtrak passengers traveling the Northeast Corridor between Boston, New York, and Washington. The tunnel is over one hundred years old and seriously decayed, and it can’t be renovated until a new tunnel is built. The estimated cost for a new tunnel: $13 billion.

Chuck Schumer, Democratic Senator from New York and Senate Minority Leader, speaking to transportation planners in December 2016 (Bloomberg News report) said: “We don’t build this, and these tunnels fail, the whole economy will collapse. There will be a deep recession in the New York metropolitan area and a recession probably in the whole country.”

A year earlier, in 2015, the federal government reached an agreement with New York and New Jersey to split the cost of a new tunnel three ways, with the feds (who own the tunnel) paying fifty percent. But when Donald Trump assumed the presidency, what had once been considered a done deal, became undone. No federal funding is guaranteed these days. There are no done deals. Deals are fluid things, subject to cancellation on a whim.

The current president is like the ogre featured in fairy tails, the one pictured lurking under a bridge, blocking traffic and the way forward. What does the ogre want? He wants wins, personal wins, and federal funds are a means of getting them. Need federal funds? Give him a win. No win, no funding. And don’t forget, he’s armed with a bag of derogatory names and a veto-tipped cudgel. If you don’t give this ogre what he wants he’ll clobber you.

Last October, New York Governor Andrew Cuomo starred in a video in which he’s seen inside the Hudson Tunnel pulling loose chunks of concrete from its wall (see: Help! The Hudson River Rail Tunnel is falling to bits). The New York Times called it a stunt designed solely to win over an audience of one, the one in the Oval Office. Apparently the stunt worked because a month later, the President invited Governor Cuomo to a meeting in Washington to discuss the need for funding.

At a press briefing November 28, the governor described the meeting as “productive.” Did he a get a funding commitment? No. Will he get one? That depends on what’s in it for the President. Some sort of quid pro quo? Support for his boarder wall in exchange for a funding commitment perhaps? Governor Cuomo says no, not from him. What then? The tunnel project, even if it started today, will not be completed for 8 to 10 years. If there’s a win in that situation for Mr. Trump, I don’t see it. Will he support the project simply because it’s the right thing to do? What do you think?
The following YouTube video shows the Press Briefing held by Governor Cuomo following his meeting with President Trump. It’s worth watching in its entirety.