The worst oil spill in U.S. territory begins when the supertanker Exxon Valdez, owned and operated by the Exxon Corporation, runs aground on a reef in Prince William Sound in southern Alaska. An estimated 11 million gallons of oil eventually spilled into the water. Attempts to contain the massive spill were unsuccessful, and wind and currents spread the oil more than 100 miles from its source, eventually polluting more than 700 miles of coastline. Hundreds of thousands of birds and animals were adversely affected by the environmental disaster.
It was later revealed that Joseph Hazelwood, the captain of the Valdez, was drinking at the time of the accident and allowed an uncertified officer to steer the massive vessel. In March 1990, Hazelwood was convicted of misdemeanor negligence, fined $50,000, and ordered to perform 1,000 hours of community service. In July 1992, an Alaska court overturned Hazelwood's conviction, citing a federal statute that grants freedom from prosecution to those who report an oil spill.
Exxon itself was condemned by the National Transportation Safety Board and in early 1991 agreed under pressure from environmental groups to pay a penalty of $100 million and provide $1 billion over a 10-year period for the cost of the cleanup. However, later in the year, both Alaska and Exxon rejected the agreement, and in October 1991 the oil giant settled the matter by paying $25 million, less than 4 percent of the cleanup aid promised by Exxon earlier that year.