Tom Balko was a successful real estate appraiser who seemingly had everything until it all went wrong. To hear segments of his story: http://stream.stthomas.edu/view.htm?id=BalkoShortVersion
For a longer version: http://stream.stthomas.edu/view.htm?id=BalkoLongVersion
If you were not able to attend the Exxon Valdez Revisited events hosted by the Law School on October 1st, you missed out on many fascinating presentations. For example, here are Tom Holloran’s thought-provoking closing comments to the Law Journal’s Symposium that day:
Many decades ago in a war now almost forgotten, called “Harry Truman’s War” or the Korean Police action, my initial duty in the Navy was abroad a tanker. The ship was launched as a Standard Oil carrier named the Esso Columbia but taken over by the Navy at the start of World War II and used as a fleet oiler. It was renamed USS Salamonie, AO26. Our role when I was aboard the Salalmonie was to load bunker fuel from a refinery in Naples, Italy and refuel at sea in the Mediterranean a variety of ships in the 6th fleet.
The Salamonie was a maze of pipes, valves, hose, winches and wires. It was ungainly and when loaded had none of the sleek lines of the battleships, cruisers, and destroyers we refueled. We were welcome in no ports and even in our home port of Newport, R.I. we were obliged to anchor six miles out.
We were significantly smaller than the Exxon Valdez. I believe at least six of the Salamonie would fit inside the hull of the Exxon Valdez. But we shared significant characteristics. When loaded we were very low in the water, and very hard to turn. After the helmsman executed a turn, it seemed almost infinite before the bow would begin to swing. I’m sure the Exxon Valdez was even more governed by the laws of inertia and friction, was even more difficult to turn.
I can only imagine the anxiety of 3rd Officer Cousins when knowing the Exxon Valdez was going on Bligh Reef, put the wheel over, aware that it was too late; only imagine his terror as he waited for the inevitable grinding sound of rock tearing through his ship’s hull.
After the grounding, the ship was renamed the Exxon Mediterranean and then later the Sea River Mediterranean and now it operates out of Hong Kong with Chinese ownership and under the name Dong Fang Ocean. Sometime after the grounding I saw the Exxon Valdez. She was in dry dock in San Diego for hull repair. Out of the water she was huge; a large awkward creature, up on blocks and totally out of its salt water environment.
Now, by modern standards she is small. The modern tanker is even wider, longer, and deeper in the water, double hulled and even more difficult to turn when underway.
Today, oil is not found where it is primarily used. It comes from the ground of the Middle East, South America, Africa, and the North Slope of Alaska. It is found over five miles deep in the ocean’s floor and in the tar sands of Canada. It is frequently conveyed around the world by a large fleet of immense ocean going tankers. Much of it is often carried through narrow waterways and in tumultuous and storm ridden seas. The case we talk about today occurred in Prince William Sound. But millions of barrels of oil annually transport through the Straits of Hormuz (outlet to the Persian Gulf), Straits of Malacca (between Indonesia on Malaysia), the narrow confines of the English Channel, the Straits of Gibraltar, the Gulf of Aden (where pirates now roam), and the Suez and Panama Canals. And now there is speculation that continued warming will open a route in the pristine waters of the Arctic Ocean north of Canada. All narrow and treacherous to navigate.
Always, in foul weather catastrophe is near. Ships hard to maneuver are even more unmanageable in heavy weather. We pay particular attention today to the grounding in Prince William Sound. And we reflect on the financial and human tragedy it unleashed. But, we need to recognize that over the history of oil spills, measuring barrels released, it doesn’t make the top 12. The history of oil spills is long and replete with human error. Given the intensity of stormy seas, the danger of narrow waterways and our insatiable demand for oil—many more barrels will be released to foul our seas and shores in the years to come. It is inevitable.
The description that we live in a gasoline culture is accurate. Gasoline determines the layout of our cities, it allows me to live in a suburb and commute to my place of work, it permits me to pile my children in the SUV and enjoy a long driving vacation. Without doubt it is a major force in determining our national interests and the engagement of our armed forces.
The commodity of gasoline has its price followed by all of us. This morning at the pump regular was $2.39. It’s a price we check with each other and remember from our last fill. When I was driving my first car, a 1950 Chevrolet, regular—when adjusted for inflation–was $2.45 per gallon about the same price as of today.
But does that price adequately cover the cost of ecological damage and the human suffering arising from my/your insatiable demands.
There many ways, all arguable, to develop the full social cost of a gallon. Some say add $1 for externalities and others say if you include the cost of foreign wars to protect sources the addition per gallon should $5 to even $15.
We talked today at length about someone else’s culpability and someone else’s role in injury to others. We have talked about the role of Captain Hazelwood and the role of Exxon. We have talked about the Courts. And our list could include the failure of government to mandate safer ships and to not be more quickly responsive after the grounding.
But, we have left ourselves off this list.
We are the users. We are the ones that expect gasoline to be available at the pump whenever we need a fill. And we are the ones that have an extended commute to work. We are the ones that have created a society that cannot function without ever present supply at reasonable prices.
So, when we total up who was responsible for the fouling of Prince William Sound and injury to countless people, put you and me on the list.
Check out our next upcoming events and links to presentations from this event at our Web site: http://www.stthomas.edu/ethicalleadership/
In his latest article “Business needs to rebuild public’s trust“, Professor Hamilton urges leaders in the business and gatekeeping professions, such as law and accounting, to undertake an in-depth assessment of both their own responsibility for the current financial sector catastrophe and steps they could take to regain the public trust.
