Alberta’s oilsands carbon liability at centre of closely watched New York fraud lawsuit

Exxon Mobil accused of misrepresenting the risks the operations face as governments move to fight climate change

Alberta’s oilsands are at the centre of a closely watched court battle in New York today.

The state’s attorney general is accusing Exxon Mobil of misrepresenting the risks the operations face as governments move to fight climate change.

Court documents say Exxon lowballed by $30 billion the impact of carbon pricing on 14 Alberta oilsands projects.

Exxon is a major player in the oilsands through its subsidiary Imperial Oil.

The state alleges false estimates concealed risk from investors and inflated the value of Imperial’s assets.

The company’s lawyer has testified that Exxon did nothing wrong, and called the accusations bizarre and twisted.

The state claims that low carbon cost estimates falsely extended the economic life of some assets. It alleges the life of Imperial Oil’s facility in Cold Lake, Alta., would be 28 years shorter if assigned a true carbon price.

It also claims carbon costs at the Kearl project in northern Alberta were understated by 94 per cent.

Exxon has tried and failed twice to block the case. It says the lawsuit fails to account for the different ways the company accounted for increasingly strict climate regulations.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Small farms would not need work place insurance under proposed bill

Bill 26, Farm Freedom and Safety Act, was introduced by Minister Devin Dreeshen Wednesday

Slightly colder than normal winter expected for Central Alberta

Meteorologists are saying Alberta will see a “typical, changeable” winter tipping towards cooler

David Thompson High School solution approved by Alberta government

The approval includes a modernization and replacement to turn the three Corridor schools into two

Yuletide Festival, Light Up The Lake to kick off holiday season in Sylvan Lake

Sylvan Lake will have a jolly time Nov. 29-30 to celebrate the start of the holiday season

PHOTOS: Bull riding finals take over Sylvan Lake

The finals champion and the national champion were named in Sylvan Lake, Nov. 16

Fashion Fridays: Holiday outfits on a budget

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

‘He listened:’ Alberta’s energy minister meets with federal counterpart in Calgary

Sonya Savage says her priority is dealing with the CN rail strike

Alberta premier dismisses concerns over firing of election commissioner

Jason Kenney’s government has been accused of rushing the legislation through by invoking time limits on debate

Alberta MLAs reject bill for health workers who refuse service based on moral beliefs

Bill would have meant workers could not be sued for refusing to provide services like abortions

Study finds microplastics in all remote Arctic beluga whales tested

Lead author Rhiannon Moore says she wasn’t expecting to see so many microplastics so far north

Millet gas station robbed, worker bear sprayed

Wetaskiwin RCMP Investigate Armed Robbery, Seek information and ID Suspect

Environmental group’s lawsuit seeks to quash ‘anti-Alberta’ inquiry

UCP launched inquiry into where Canadian environmental charities get their funding

Federal laws at heart of West’s anger up for debate, as Liberals begin outreach

Vancouver mayor to Trudeau’s western critics: ‘Get over yourselves’

Snowboard pioneer Jake Burton Carpenter dies at 65

He was diagnosed with testicular cancer in 2011

Most Read