Oregon county sues oil, gas companies including Exxon, Shell, Chevron for deadly 2021 Pacific Northwest heat dome
Shanton Alcaraz from the Salvation Army Northwest Division gives bottled water to Eddy Norby who lives in an RV and invites him to their nearby cooling center for food and beverages during a heat wave in Seattle, Washington, U.S., June 27, 2021.
Karen Ducey | Reuters
Multnomah County in Oregon is suing oil and gas companies Exxon Mobil, Shell, Chevron, BP, ConocoPhillips and related organizations for the damages caused by the 2021 Pacific Northwest heat dome. Multnomah County said these and other fossil fuel companies and entities operating in the region are significantly responsible for causing and worsening the deadly heat event.
“The combined historical carbon pollution from the use of Defendants’ fossil fuel products was a substantial factor in causing and exacerbating the heat dome, which smothered the County’s residents for several days,” Multnomah County alleges, according to a written statement released Thursday.
The lawsuit is filed against Anadarko Petroleum (acquired by Occidental Petroleum in 2019), American Petroleum Institute, BP, Chevron, ConocoPhillips, Exxon Mobil, Koch Industries, Marathon Petroleum, McKinsey & Company, Motiva, Occidental Petroleum, Peabody Energy, Shell, Space Age Fuel, Total Specialties USA, Valero Energy and Western States Petroleum Association.
Multnomah County is seeking $50 million in actual damages, $1.5 billion in future damages, and an estimated $50 billion for an abatement fund to “weatherproof” the city, its infrastructure and public health services in preparation for future extreme weather events.
Starting on June 25, 2021, Multnomah County had three consecutive days where the heat reached 108, 112 and 116 degrees Fahrenheit, respectively. Each of those days was about 40 degrees above the regional average and were the hottest days in the County’s recorded history.
The heat event is called a heat dome which is a weather event caused by a high-pressure system that in this case prevented cooler maritime winds to blow and also prevented clouds from forming.
The heat caused the deaths of 69 people, and property damage and was a draw on taxpayer resources, Multnomah County says.
Multiple climate scientists researched the cause of the heat dome and all said that the event was caused by excessive carbon dioxide emissions released by the burning of fossil fuels, the plaintiff says.
“The heat dome that cost so much life and loss was not a natural weather event. It did not just happen because life can be cruel, nor can it be rationalized as simply a mystery of God’s will,” the lawsuit reads. “Rather, the heat dome was a direct and foreseeable consequence of the Defendants’ decision to sell as many fossil fuel products over the last six decades as they could and to lie to the County, the public, and the scientific community about the catastrophic harm that pollution from those products into the Earth’s and the County’s atmosphere would cause.”
Jessica Vega Pederson, the chair of Multnomah County, is seeking to protect the residents of the county she represents.
“This lawsuit is about accountability and fairness, and I believe the people of Multnomah County deserve both. These businesses knew their products were unsafe and harmful, and they lied about it,” Pederson said in a written statement announcing the lawsuit. “They have profited massively from their lies and left the rest of us to suffer the consequences and pay for the damages. We say enough is enough.”
The case is being brought by three law firms with expertise in catastrophic harm litigation: Worthington & Caron PC, Simon Greenstone Panatier PC, and Thomas, Coon, Newton & Frost.
The plaintiffs allege the defendants committed negligence and fraud and created a public nuisance.
Bill Forte from North Sky Communications works on a fiber optic line during a heat wave gripping the Pacific Northwest in Lake Forest Park, Washington, U.S., June 26, 2021.
Karen Ducey | Reuters
“There are no new laws or novel theories being asserted here. We contend that the Defendants broke long-standing ones, and we will prove it to a jury,” Jeffrey Simon, a partner at Simon Greenstone Panatier, said in a statement.
The case is using new and expert climate science, according to Roger Worthington, a partner at Worthington & Caron.
“We will show that the normal use of fossil fuel products over time has imposed massive external, unpriced and untraded social, economic and environmental costs on the County. We will show that they were aware of this price, and instead of fully informing the public, they deceived us. And we will ask a jury to decide if it is fair to hold the polluters accountable for these avoidable and rising costs,” Worthington said in a written statement.
“We are confident that, once we show what the fossil fuel companies knew about global warming and when, and what they did to deny, delay and deceive the public, the jury will not let the fossil fuel companies get away with their reckless misconduct,” Worthington said.
Defendants say a court case won’t help
Exxon says the lawsuit is unproductive.
“Suits like these continue to waste time, resources and do nothing to address climate change,” a spokesperson for Exxon told CNBC. “This action has no impact on our intention to invest billions of dollars to leading the way in a thoughtful energy transition that takes the world to net zero carbon emissions.”
The American Petroleum Institute, an industry trade group for the oil and gas industry, defended its constituents’ work making energy available to consumers and, like Exxon, called the lawsuit unproductive.
“The record of the past two decades demonstrates that the industry has achieved its goal of providing affordable, reliable American energy to U.S. consumers while substantially reducing emissions and our environmental footprint,” Ryan Meyers, senior vice president and general counsel for API, told CNBC in a statement. “This ongoing, coordinated campaign to wage meritless lawsuits against our industry is nothing more than a distraction from important issues and an enormous waste of taxpayer resources. Climate policy is for Congress to debate and decide, not the court system.”
Legal counsel for Chevron called the lawsuit unproductive and unconstitutional.
“Addressing the challenge of global climate change requires a coordinated policy response. These lawsuits are counterproductive distractions from advancing international policy solutions,” Theodore Boutrous, Jr. of Gibson, Dunn and Crutcher, told CNBC in a statement. “The federal Constitution bars these novel, baseless claims that target one industry and group of companies engaged in lawful activity that provides tremendous benefits to society.”
People sleep at a cooling shelter set up during an unprecedented heat wave in Portland, Oregon, U.S. June 27, 2021.
Maranie Staab | Reuters
Shell said it is working toward a low-carbon future and does not see a lawsuit as productive.
“The Shell Group’s position on climate change has been a matter of public record for decades. We agree that action is needed now on climate change, and we fully support the need for society to transition to a lower-carbon future. As we supply vital energy the world needs today, we continue to reduce our emissions and help customers reduce theirs,” a Shell spokesperson told CNBC.
“Addressing climate change requires a collaborative, society-wide approach. We do not believe the courtroom is the right venue to address climate change, but that smart policy from government and action from all sectors is the appropriate way to reach solutions and drive progress,” Shell said.
ConocoPhillips and the Western States Petroleum Association told CNBC they don’t comment on active litigation.
BP, Motiva, Occidental Petroleum, Space Age Fuel, Valero Energy, Total Specialties USA, Marathon Petroleum, Peabody Energy, the Koch Industries, and McKinsey did not immediately respond to requests for comment.
Technology
Blockchain-driven platform to mimic stock trading, allowing users to buy shares of SpaceX, other hot private companies
Artistgndphotography | E+ | Getty Images
Republic, a New York-based investment startup, is offering users exposure to SpaceX by issuing a “tokenized” representation of its shares.
The company will begin selling the digital tokens this week and eventually plans to expand the offering to other private companies like artificial intelligence darlings OpenAI and Anthropic, as well as Stripe, X, Waymo, Epic Games and more. The Wall Street Journal first reported the story Wednesday.
“We’re talking about delivering products to retail investors that they’ve have been held out of previously,” Republic co-CEO Andrew Durgee told CNBC. “The fact that retail investors couldn’t own pre-IPO SpaceX has always been crazy to us. Now that’s going to be attached to the upside of these pre-IPO businesses. The businesses that we target out of the gate we want to have a retail focus, or at least significant retail following.”
In the crypto world, tokenization is the process of issuing digital representations on a blockchain network of publicly traded securities, real world assets or any other form of value. Holders of tokenized assets don’t have outright ownership of the assets themselves.
The move comes as the U.S. crypto industry is testing new regulatory boundaries under President Donald Trump’s pro-crypto administration. Since he took office, the Securities and Exchange Commission has moved swiftly to loosen the restraints left on the crypto industry by the previous administration, ending an enforcement case against Coinbase; closing investigations into Robinhood Crypto, Uniswap, Gemini and Consensys without enforcement action; scaling back its crypto enforcement unit; declaring meme coins are not securities and launching a Crypto Task Force that’s been holding a series of roundtables on crypto asset regulation.
“If you take a step back and look at what the last four to eight years looked like in the space, innovation was very stifled,” Durgee said. “The reality is the space was just difficult for most to understand and consume. Now we’ve gotten to a point where it’s certainly become more mainstay.”
“We’ve moved from what was ultimately … nothing but headwinds,” he added. “And now we’re finally in a place industrywide, where we actually have tailwinds and we have some room to really innovate.”
Republic will allow investors to invest between $50 and $5,000 in the tokens. Typically, those wanting to invest in private companies are required to meet a minimum closer to $10,000 and need to meet specific income or net-worth requirements. Shares of private company can be exchanged by accredited investors in secondary markets; Republic will initially price SpaceX tokens based on how the company’s shares are performing there.
Tokenized private equity is new territory for regulators and the underlying companies being digitally represented. There are outstanding questions about the legality of the tokens, how Republic will give financial information to investors as required, and how selling private investments to retail investors could provoke stress in the financial markets.
“We don’t need a company’s approval to be able to do these types of offerings, and I do think there will be some companies that will want more control over something like that,” Durgee said. “The reality is the structure that we’re using, which was built on securities law from the 1930s, in a lot of instances allows us the leeway to give these types of offerings. People are going to really have to start to question how they’re going to approach some of these innovations, and how far they will want to push that risk envelope.”
Financial institutions are becoming increasingly interested in tokenizing traditional assets because of the often-touted benefits of blockchain technology: lower costs, faster settlement times, greater transparency about ownership and performance and programmable terms, as well as increased accessibility for retail investors and global reach.
The announcement comes about a week after Coinbase said it’s pushing for SEC approval to offer trading of tokenized public stocks, which would give the crypto services provider an additional revenue stream and put it in closer competition with brokerages like Robinhood and eToro.
Competing crypto exchange Kraken recently said it’ll offer tokens of U.S. stocks for 24/7 trading in unspecified markets abroad.
BlackRock CEO Larry Fink has said he sees the “tokenization of every financial asset” as an important step in “the technological revolution in the financial markets.”
An unmanned aerial vehicle (UAV) at the AeroVironment Inc. booth during the Special Operations Forces Industry Conference (SOFIC) in Tampa, Florida, US, on Tuesday, May 17, 2022.
Luke Sharrett | Bloomberg | Getty Images
AeroVironment stock rocketed more than 24% higher Wednesday as the drone maker beat fourth quarter expectations on the top and bottom lines.
Here’s how the company did compared to analyst expectations:
- Earnings: $1.61 per share adjusted vs $1.39 per share expected
- Revenue: $275 million vs $242 million expected
The company reported financial results after market close Tuesday and logged record fiscal year revenue of $820.6 million, up 14% over the prior period.
AeroVironment reported net income of $16.66 million for the fourth quarter, or 59 cents per share, compared to net income of $6.05 million, or 22 cents per share, last year.
The company closed the $4.1 billion acquisition of defense tech company BlueHalo on May 1. BlueHalo makes drone and defense technology such as laser weapon systems, with a focus on space tech.
“Our acquisition of BlueHalo further advances our leadership position within the defense-technology sector by adding a complementary portfolio of innovative products and capabilities aligned to our customers’ highest priorities,” AeroVironment CEO Wahid Nawabi said in a statement.
For the new fiscal year, the company said it expects revenues to range between $1.9 billion and $2 billion. The company forecast earnings between $2.80 and $3.00 per share.
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