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At issue is whether Exxon should have to pay any damages under the federal Clean Water Act and centuries-old laws governing shipping.
Exxon maintains that punitive damages would be excessive punishment beside the $3.5 billion in cleanup costs, compensatory payments and fines it already has paid. As for the environmental effects of the spill, the claim about severe, continuing damage to the sound "is simply untrue," according to the Texas company, which earlier this month posted the largest annual profit by a U.S. company - $40.6 billion.
"The environment in Prince William Sound is healthy, robust and thriving," Exxon spokesman Tony Cudmore said in an e-mail to The Associated Press. "That's the conclusion of many scientists who have done extensive studies of the Prince William Sound ecosystem."
To the casual observer, the sound's stunning beauty has been restored, its many islands, fjords and glaciers a photographer's dream. But residents in Cordova and other communities say the region is still a long way from healing. It took years for salmon to rebound, and sea otters and Harlequin ducks are still below pre-spill numbers.
An estimated 85 tons of crude linger, according to a federal study released last year. Jars of oil-stained sand and rocks still being dug up in the spill area can be examined at the Prince William Sound Science Center at the south end of town.
Most devastating to Cordova residents, the once-lucrative Pacific herring fishery has not returned in significant numbers since 1993, a failure precipitated by the spill, according to a recent report by science center researchers. Exxon maintains there is no link between the spill and the virus that reduced the number of herring.
Economic Staple Disappears
The herring catch used to kick-start the entire town after the quieter winter months. Herring meant a quick bounty for fishermen and ready cash for boat insurance, equipment repairs and new gear. For many, it represented a half year's earnings. Herring also brought auxiliary ships, processor vessels, and plane crews for spotting the fish.
"A whole lifestyle has gone," said restaurant owner Libbie Graham. "Life was great. I mean, you worked hard but you were rewarded for it."
The year before the spill, Cordova received $1.2 million - or 2 percent of the value of fish caught - through the state's raw fish tax, according to Joyce, the mayor. Post-spill, the town's annual cut has averaged around $500,000, reflecting the loss of the herring and the falling price of salmon.
"When our budget is just $6 million, that's a big hit for us," Joyce said.
Steve Picou, a sociologist with the University of South Alabama who has been researching the effects of the spill on Cordova residents, said that initially, reports of stress and depression were directly linked to the loss of jobs for fishermen and the damage to the environment so crucial to Alaska Natives who hunt and fish for their food. Later, he said, the stress increased because of the drawn-out court battle with Exxon.
"I find it not only ironic but tragic that the very process that is supposed to resolve the social impacts of the Exxon Valdez spill - that is, litigation - has, over time, become a source of stress and disruption itself," Picou said.
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