Oil giant Mobil given $350,000 fine

Global oil giant Mobil has been convicted of causing an environmental hazard and ordered to pay $350,000 toward environmental projects.
The verdict was handed down in the Melbourne Magistrates Court on Wednesday, after Mobil admitted part of a suburban steel pipeline from an oil refinery to a terminal had corroded and leaked unleaded petrol over a two-year period.
The pipeline ran under a road in the western suburb of Newport, Melbourne.
Environmental Protection Authority (EPA) investigations revealed the leak could have started in December 2004 and remained undetected until December 2006, when residents became aware of a strong petrol odour.
The exact amount of petrol that had leaked over that time was unknown.
Several residents reported feeling unwell, a childcare facility was evacuated, train services were disrupted and petrol was discovered in the water supply of a nearby property.
An EPA spokesman said it was expected the cost of Mobil's clean-up of the site to exceed $13 million and to continue for at least the next four years.
The EPA also has been awarded $160,000 in costs.
EPA chairman Mick Bourke said Wednesday's result was the highest penalty the Victorian courts had awarded for a land-based pollution incident.
"This incident has had a significant impact on the local community and we thank them for their continued patience during the clean-up of this site," Mr Bourke said.
A Mobil spokeswoman said the company was "very sorry that the incident occurred in the first place". She said processes were now in place to ensure it never happened again, with improved pipeline maintenance and changes made in the company's internal operations.
"We're pleased that the $350,000 will go towards some great local projects," she said.
The money will be shared among three groups in the western suburbs who aim to clean up the environment.