The MTBE Wars: Current Progress and Future Implications for Addressing Drinking Water Contamination

Public and private water managers from around the country have sued the oil industry over MTBE/TBA contamination. The costs of removing MTBE and/or TBA from drinking water are enormous, as are the stakes in these cases.  Unlike traditional lawsuits over Leaking Underground Storage Tanks, these cases assert that gasoline containing MTBE is a defective product.  A federal jury in 2009 awarded the City of New York $105 million for ExxonMobil’s share of MTBE-related treatment costs for five drinking water wells in Queens on the theory that gasoline refiners – not local gas station operators – are responsible when MTBE contaminates drinking water. 

Hundreds of cases from around the nation – including public agencies and two States (New Hampshire and New Jersey) – are pending in state and federal courts.  In 2008, some major oil companies paid more than $400 million to settle many MTBE cases; the companies also agreed to treat certain wells for decades.  In 2009, the New York City verdict came down.  Now several other key cases are headed to trial in 2011, including the State of New Hampshire’s landmark statewide case.

The MTBE lawsuits provide valuable lessons for water managers, consultants, and lawyers.  They represent a model for communities facing any significant anthropogenic pollution of drinking water supplies.  This paper explains the genesis of the lawsuits, the primary legal theories, the key legal rulings, and the landmark verdicts and settlements.  It also looks at what the future may hold for litigation involving other ground water contaminants including PCE, TCE, TCP, perchlorate, and others.