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 <A HREF="aol://4344:30.L100c9fj.5290089.678173747"> 06/28: Esso Australia 
<XOM.N> guilty on Longford charges</A> 

Esso Australia <<A HREF="aol://4785:XOM">XOM.N</A>> guilty on Longford charges

  
MELBOURNE, June 28 (Reuters) - Exxon Mobil Corp unit Esso Australia Ltd was 
found guilty by a Victorian Supreme Court jury on Thursday on 11 charges 
linked to an explosion at its Longford gas processing plant which killed two 
people. 

Esso faces a maximum fine of A$2.75 million on the criminal charges under the 
state's Occupational Health and Safety Act, which each carry a maximum 
penalty of A$250,000. Esso had pleaded not guilty to all 11 charges. 

Justice Philip Cummins said a separate hearing would begin on Friday to set 
the penalty. 

The explosion at the Longford plant in September, 1998 killed two employees, 
caused others to be seriously injured, left the state of Victoria almost 
totally without gas for about two weeks and cut crude oil production for 
several months. 

Esso Australia chairman Robert Olsen said outside the court the company 
acknowledged the court's decision and was committed to continuously improving 
the safety of its operations. 

"Esso deeply regrets this accident, the tragic loss of life and the serious 
injuries that resulted. The safety and the well being or our employees, our 
contractors and the nearby community is of the highest importance to this 
company," he said. 

"This accident marks a low point in the 30-plus year history of operations 
that we have in this country." 

Esso has come under fierce criticism in Victoria for a perceived 
unwillingness to accept responsibility for the accident. 

The Victorian WorkCover Authority laid the charges against Esso after a Royal 
Commission inquiry into the blast criticised the company for failing to 
adequately train its workers. 

VERDICT BOOSTS CLASS ACTION 

Esso also faces a potential A$1 billion class-action hearing in the Supreme 
Court, representing businesses and individuals who suffered financial loss as 
well as insurance companies seeking to recover policy payouts of A$300 
million. 

Lawyer Nick Styant-Brown, of legal firm Slater and Gordon, said the criminal 
verdict would assist the class action, which is likely to be go before the 
courts in the first half of 2002. 

"What it means for the class action is our case for establishing fault 
against Esso is very strong," he said. 

Unions representing employees at the Longford plant called for tougher 
penalties to be introduced for corporations such as Esso, whose parent Exxon 
Mobil in January reported a world-record annual profit of US$16.9 billion. 

Australian Workers Union secretary Bill Shorten said Esso should apologise to 
the Longford plant workers and the Victorian community. 

"Esso can afford to pay any fine in any jurisdiction in the world. Our 
concern is that Esso will just assume that they can pay the money and they 
can go on with their business," he said. 

The Longford plant is operated by Esso and is supplied from Bass Strait oil 
and gas fields in a joint venture between Esso and BHP Ltd <BHP.AX>. 

US$1=A$0.52 

01:35 06-28-01

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