RECEIVED 83/28/201615:29 5014504948 FC CIRCUIT CLERK 1c Faulkner County Circuit Court Clerk Page3of37 2016-03-28 20:28,42 (GMT) Duncan Firm P.A. (5 From: Duncan Firm P.A: (Ph: 501- IN i'HE CmCDIT COURT OF FAULKNER COUNTY, ARKANSAS First Division JASON HAYS AND ^4£USSA IIAYS, husband and wife. LYNETTE BROWN, on bchall'ol'herself individually. and in bur capacity, us grandparent and next friend ofGAURIELLE WALKER, a minor, KA'IIIY OlibLLbTIh, JEREMY COMBS. KEITH PRlCti, CllRlSHAN ALEXANDER, KLLEN Dl.RCitiSS. CRAIG AND TGRBSA BULLARD, husband and wile, and , Plaintiff Lackey li;u» directly uxperienccd diimagcs as ii result of the Exxon Pegasus Pipeline failure unit seeks iill damages pcrmittud by Arkansas tuw. 23. PlainlifT Sum Morris resides ul 27 Hast Ridge Road, Muyriowcr, (•'aulkncr County. Arkansas*. Plaintiff Morris has directly experienced damages as a re&utt ol' the Exxon Pegasus Pipdirm railurc, and seeks all damages pemiiltcd by Arkunsa-s law. 24. Plaintiffs Robert Mattox and Lola Maltox reside at 58 Snuggs Circle. Faulkner County, Arkansas. Plttinliffc Robert «nd Lolu Muttox hiivc diructly cxpcriuncctl damngcs as a result of the Uxxon Pegasus Pipeline failure and seek all damages pemiitted by Arkansas law. 25, 1'taintifF Kathryn Jane Chnnn resides at 38 Lcdrick Circle. Mayflower, Faulkner County, Arkansas. Plaintiff Chunn has directly exptfrienceil dnmagcs as a result of the Exxon PC^USHS Pipeline failure, und seeks all damages punnittcd by Arkansas law. 26. PlaintilTs Kimla Greene and her minor children, Madison Harris and Kobe Sims reside at 41 Ledrick Circle. Mayflower. Faulkner County, Arkansas. PlaintilTs Greene, Hams and Sims have directly experienced damages as a result of the Exxon Pegasus Pipeline failure, and seek ati damages permitted by Arkansas law. 27. Plaintifls Roger Muynard and Fereshtcli Mayiiard reside at 3055 Sassy Road, Conway. Faulkner County, Arkansas. Plaintilts Roger and Fereshieh Maynard own property in Mayflowcr. Faulkner County, Arkansas, including property tocatcd nt 18 Lake Forest Mnyflowcr, Faulkner C'uunly, Arkunsas.; Mayflowcr, Fnulkncr Cu«nly, Arkunsns; 47 A & B Highway W South, Mayllower, Faulkner County. Arkansas; and other areas in Faulkner County, Arkansas. Plaintiffs Roger and Fereshteh Maynard liave direcdy experienced damages as a result of the Exxon Pegasus Pipeline failure und seek all damages pennittcd by Arkansas law. RECEIVED 03/28/2016 15:29 5014504948 FC CIRCUIT CLERK T-, Fauikner County Circuit Court ClcrK Page 9 of 37 2016-03-28 20:28:42 (GMT) Duncan Firm P.A, (5 Ffom: Duncan FlmP.A. (Ph: S01- 28. PlitintilT Dwayne McDougal resides at 48 Snuggs Circle or Northside, Mayriower, Faulkner County, Arkansas, PlaintilTDwayne McDougal has dirccrty experienced damages (is a result nl'the Exxon Pegasus Pipuline lailuru. and seeks all d;«nag<;!» permitted by Arkaiiksus law. 29. Plaintiff Jason McUougal reside a( 48 Snuggs Circle or Nonhsidc. Mayflowcr, Faulkner Coumy. Arkansas. FluintiH' .lason McDougal has directly experienced damages as a result of (lie Exxon Pegasus Pipeline failure, and seeks all damages permitted by Arkansas law. 30. Plaintiff Kclly Page resides at 48 Snuggs Circle or Northsidc, Mayflowcr, Faulkner County, Arkansas. Plainlin' Pugu bus diructly expuriunccd dumuycs a!> u result of the Exxon Pegasus Ptpetine failure and seeks all damages permitted by Arkansas law. 31. Plaintiff Paitsy Newell resides at ? Urcva Circle, Maynower, Faulkner County, Arkansas. Plaintiff Newcll has directly experiencctl ilamages as a result ol* the Exxun Pegasus Pipeline failure, and seeks ull damages pcmnltud by Arkansus luw. 32. PlaintitT Ondra Phillips resides at 21 Lei&urewood Lane, Maumelle. Pulaski County, Arkansas. PlaintifI'Phillips owns property located at 43 Meadowlark Loop. Maytlower, Faulkner County, Atkansas. PlumtilTPhillips hns directly experienced damages as a result ol'the Rxxun Pegasus Pipeline Failure, and seeks all damages permitted by Arkansas luw. 33. PlaintiO'Margaret Roberts resides at 39 Meadowlark t-oup, Mayllower. Faulkner County, Arkansas. Howard Senteney resided at 39 Meadowlark Loop, Mayflower. Faulkner County, Arkansas at the time of the filing of this lawsuit until he passed away on August 8, 2015. '(his Court has by Court Order, duted December 29, 2U15, substituted Margaret Roberts as Special Administratrix for Howard Senteney's claim, Plaintiffs Howard and Margaret RobeHs directly experienced damages as a result of the Exxon Pegasus Pipclme failure, and seek alt ilfltnagcs permitted by Arknnsns law. RECEIVED 83/28/2016 15:29 5014504948 FC CIRCUIT CLERK To FaulKner County Circuit Court Clerk Page 13 of 37 2016-03-28 20:28:42 (QMT) Duncan Film P.A (5 From: Duncan Firm P.A (Ph. 501. 52. P.xxon is headquartered in Irving. Dallas County. Texas at 5959 Las Colinas Boulevard, In'hlg, Texas 75039-2298. Exxon is incorporated in Delaware, and is identified to be found by the Tuxiii; Secretary oFStmc at 800 Bell Street. Room 2605, Houston, Hams. County. Texas. Exxon may be served through the Corporation Service Company d/b/a CSC-Lawycrs Incorporating Service Company, 211 U. 7"' Street. Suite 620, Austin. Texas 78701-3218. Exxon publicly promotes and markets itself as the "world's largest publicly trwSsd international oil and gas company." It engages in oil exploration, development, marketing, production, refining, trunsportatiun, pipinR and uxpurtatiun. K uniusiscs ruvcnues in the hundreds ufbUlions each year and is considered the number one or one of the top revenue earning companies in major financial magazines and reports. Exxon has had previous major oil spills and faihires in other parts of the Country and has been lined by governmental agencies. 53. ExxunMubil Pipeline Company, L.P., ExxunMobil Pipeline Compuny (collectively EMPCO) and Mobil Pipeline Company are companiesi that upon inlannation and belief own, maintain or operate the Pegasus Pipeline, are directly related to or are attiliated with each other, Exxon and ExxonMobil and have ownership interests in joint interest pipelines and opentt; proprietary and joint venture distribution terminals in (lie United States. Upon infomiittion and belief, EMPC.O is located and headquartered at 800 Bell Street, Houston. Harris County, Texas. Mubil Pipeline Company is an affiliate ofExxonMobil Pipeline Company and operates a facility in Patoka, Illinois where it maintains documents pertaining to the corporate activities. It is also located at 800 Bell Street in Houston, llarris County, TCXHS. Exxon, EMPCO nnd Mobil are collectively referred to hereinafter as Defendants. 54. Defendant David Raulston was employed by Separate Defendant ExxonMobil Pipeline Company at the time of the Mayflowcr Incident as an Opcmtions/Maintenancc 11 RECEIVED 03/29/2016 15:29 5814504948 FC CIRCUIT CLERK . c Faulkner County Circuit Court Clerk Page 10 of 37 2016-03-28 20.28:42 (GMT) Duncan Firm P.A (5 From: Duncan Firm P.A. (Ph: 501. 34. PIaintifT Darolyn Perkins a\\-ns property located at 17 Sunbell Court, Maylluwer, Tuulkner County, Arkansas, PlaintUT Perkins lias directly experienced damages as a result of the Exxon Pegasus Pipeline failure, aiul seeks nd tlamagcs pcnitittcd by Arkansas law. 35. Plaintifr Jason Thompson resides al 12XU Highway 89 Soulh, Mlayflowcr, Faulkner County, Arkansas. Plaintiff Thompson has directly experienced damages as a result of the Exxon Pygasus Pipeline failure,, and seeks all damages pemiiltcd by Arkansas law. 36. PlaintitT Tia Dovis resides at 17 Sunbclt Court. Mayflowcr, Faulkner County, Arkansas. Plaintiff Duvis bus directly experienced dainaycs as a result of the Exxon Pegusiu Pipeline luilure, and seeks all damages permitted by Arkansas law. 37. Plaintiffs Tim Standish and Ronny Standish reside at 52 Snuggs Circle. Mayflowur. Faulkner County, Arkansas. Plaintin's Tim and Ronny Standisli huve directly experienced damages as a result of the Exxun Pegasus Pipeline fuilurc, und seek all damages permitted by Arkansas law. 38. Plaintids William Washam and Pal Washam reside at 3 Fowler Street, Mayflower, Faulkner County, Arkansas. Plaintiffs William and Pat Washam have directly experienced damages as a result of the Exxon Pcgasiis Pipeline lailuru, and seek all damages permitted by Arkansas law. 39. PlaintilTs Cameron Thompson and Kelly Thumpson reside at as, near Muyfluwer, north of Little Rock and continues upwards through Northeast Arkansas into Missouri and into Patoka. Illinois (approximately 850 miles). 69. In Arkansas, the Pegasus Pipeline crosses watersheds Ibr 18 drinking water sources that, together, serve approximately 770.000 people in the state. These watersheds include; Red River Crossing, Little River Crossing, C'ossatot River Crossing. Salinc River ("Tossing. Little Missouri Crossing. Caddo River Crosi>ihg, Ouachita River Crossing, Alum Fork River Crossing, Lake Maumellc, Arkansas River Crossing. Lake Conway Crossing. Little Red 13 RECEIVED 03/28/201& 15:29 5014504948 FC CIRCUIT CLERK Fo Faulkner County Circuit Court Clerk Pafle1Gof37 2016.03.28 20.28:42 (GMT) Duncan Firm P.A. (5 From: Duncan FirmP.A. (Ph: 501. River Crossing, While River Crossing, Strawberry River Crossing, Spring River Crossing, Eleven Point River Crossing. 70. The Pegasus Pipeline Irom Patoka to Corsieuna was uperatctt from u south to north tluw direction totlowing its construclion in the 1940s. 71. L'p until 2002. the Pegasus Pipeline only transported light, sweet crude oil north from Corsicanu, Texas to Patoka Illinois. 72. In 2006, in order to maximize profits, the Dctcnitants reversed the Pegasus Pipeline to increase the flow of crude oi] southward 1'roiu Canada to the Gulf Coast. The Defendants desired to transport larger amounts of Canadian crude tar sands, which is more abrasive to the Gulf Coast through the Pegasus Pipeline miming through Illinois, Missouri, Arkansas and Texas. This wus the Hrst time that a pipeline company had attempted to reverse the flow of its pipeline when it was in a deficient and antiquated curulition. 73. The President of ExxonMobil, Mike Tudor, stated that tlw Pegasus Pipeline Reversal Project was "an excellent example ol'our elYorts to maximize the value of our pipeline and terminal assets." 74. ExxonMobil's decision to change the direction ol' llow of the Pegasus Pipeline increased the hydnmlic and stress demands on the pipeline that was already prone to failure. 75. ExxonMobiFs Pegasus Pipeline Reversal Project was completed in 2006, and the pipeline began transporting Wabasca Heavy Crude south from Patoka, Illinois to Corsicana, Tcxii.s'. Wrtbascn Hcnvy Crude, a Canadian tar sands, comc.s (rum the Wabiskaw Sundstone tonnation (or similar formation) in the Pelican Lake OilFicld in Canada. Wabasca Heavy Cmde is often referred to as bitumen, 14 RECEIVED 03/28/2816 15:29 5814504948 FC CIRCUIT CLERK 7 o Faulkner County Circuit Court Cleik Page17of37 2016-03-2820.28:42 (GMT) Ouncan Firm P.A. (5 From: Ouncan FlrmP.A. (Ph: 501. 76. Qihimen is difTerent rrom conventional crude oil; it c higher sullur. is a heavier substance, and has a greater gravity and is thus more resistant to flow in (lie pipeline, cumpsu-iid (H (lit; light, swcut crude oil the pipeline was designed lo transport. 77. In order to be transported long distances, biiumen mus( bu diluted with lighter hydrocarbons, This diluted, hazardous, liquid material is referred to as "dilbit." Dilbit is toxic and dangerous to humans. Dilbit can also enhance the risk ot" pipeline failures and can cause failures in pipelines. 78. The Pcgusus Pipeline t'rom 2006 ttiruugti March 29,2013. wus truuspurting dilbit from Canada. 79. In 2008, Exxon publicly disclosed Exxons intent of replacing the Pegasus Pipelinu with a new, larger, state-of-the-art pipeline called the Texas Access Pipeline, The Texas Aucush Pipeline proposed a 768-milc, 30-inch diameter pipeline frum Palnka, Illinois to Nederland, Texa;> to be installed on Class Members' property. The Texas Access Pipeline was planned to have the capacity to transport 445,000 bands of petroleum substance per day. The proposed cost ofthe Texas Access Pipeline was S2.6 billion. 80. The Texas Access Pipeline was a joint venhire with Enbridge. 81. In 2009. instead of installing the expensive Texas Access Pipeline. Defendants iitcreused the capacity of the Pipeline by 50%. (hmi 65,000 barrels a day (u approximately 100,000 barrels a day, putting further stresses on the pipeline, including the rcactivation of suvurul pump stations along the pipeline. This rcnctivatiun itiul cnhnnccmcnt was to cnitblc the transportation of additional Canadian crude from the Midwest to Gulf Coast refineries. 82. The transportation of Canadian tar sands imposes greater risks to pipeline integrity, inclutling greater corrosivc effects on pipelines, wliich arc defective and unsafe and 15 RECEIVED 03/28/2016 15:29 5814504948 FC CIRCUIT CLERK I ("Faulkner County Circuit Court Clerk Page 18 of 37 2016-03-2620:28:42 (GMT) Duncan Firm P.A. (5 From: Duncan Firm P.A. (Ph: 501- posed cnhanued risks to people and property in close proximity to the Pipeline, prior to March 20.2013. 83. It is known in the oil and gas industry that a change in the direction o1'oil flow in a pipeline can affect the hydraulic and stress demands on (he pipeline und the abrasivc quality ol' the hydrocarbon product can increase corrosion and deteriorate the quality of the pipe. 84. The Pegasus Pipeline was and has not been properly and adequately inspected or maintained to ensure the safe transport of cmdc oil and/or tar sands through the entire route of the Pegasus Pipeline traversing through ArkaniiBb. 85. At the time of (he rupture, the Pipeline was in an unsafe and deteriorated condition in Faulkner County, Arkansas, Reversal of the flow and an increase in cmde oil capacity increased the hydraulic and stress demands on the Pipeline and weakened the Pipeline. This activity to increase profits increased the already unsafe and unreasonably dangerous condition, rendering major disaster, pipeline fracture, and rupture inevitable. 86. Further, the oil and gas industry has created internal rules and policies pertaining to the maintenance, inspection and integrity management of hazardous, liquid pipelines, such ns (he Pugiuns Pipeline. These duties to maintain a safe pipeline are non-delegable and require the Defendants to ensure the entire pipeline is safe for transportation of crude oil and toxins, 87. At the time the Pegasus pipeline was installed and laid, it was common knowledge in the industry that proper maintenance was vital to operating a pipeline efficiently. 88. ERW Pipelines manufactured buforc the 1970's arc known in the mduslry to he .susceptible to selective seam corrosion, hook cracks, and inadequate bonding of the seums. 89. Beginning in the 1960s, the Department of Transportation began noting seam failures in ERW Pipe. From 1968-1988, there had been 172 documented ERW scorn failures in 16 RECEIVED 03/28/2016 15:29 5014504948 FG CIRCUIT CLERK I o Faulkner County Circuit Court Cterk Page19of37 2016-03-28 20:28:42 (GMT) Duncan Firm P.A. (5 From'Duncan FlnnP.A (Ph; 501- hazardous liquid pipeliues during 1968-1988 with a large majority of those failures concerning pipe consmicted in the 1940s and 1950s. 9U. In 1970. the tow frequency process that was used to manutachirc rhc Pcga-sus Pipeline was no longer used 10 mannructurc pipelines. 91. By 1988, it was well established, that ERW pipe manufactured before 1970 contained u significant number of wetd defects as a consequence of the use of a subsequently discontinued tow-frcqucncy ERW technique, and continued use of this type of pipe initiated fractures. Further, futiguu due to repeated prcs.surc changes also lend to growth ofwuld defects in pipelines. 92. Because of the potentially serious nature of EKW seam failures, on January 28, 1988. Richard L. Beam, Director, Office of Pipeline Sulcty sent a Pipeline Salety Alen Nolice notifying pipeline opuruton of findings relative to factors contributing to operational failures of GRW pipelines manufactured prior to the 1970s and to reevaluate the safety of continued operation ol* all pre-1970 ERW pipelines. The Salety Alert Notice notilied pipeline companies, including Exxon, that all pre-1970 ERW Pipe was deemed susceptible to longitudinal seam failures, unless currenl cnyineering analysis iihuwed olhurwise. 93. Pipeline operators, who operated pre-1970 ERW pipelines, were notified e unknown", "amount unknown" but release duration three (3) hours. • 1<»:3U PM - EPA arrives on scene Saturday March 30.2013 « 3:25 AM Thad Massengale calls NRC again and "corrects" drop in pressure discovery time from 3-.20PM &? l:15PM. Sunday March 31.2013 • 3:0(1 AM - "Mark" from Exxon ''seemed to think" that the pipeline stopped leaking on Sunday March 31,2013 at 3:00 AM, Dcmi VanDcrhotTofADEQ observed that the Pipeline did not stop leaking until 3:00 AM on March 31.2013, 124. The above (imeline reveals that ExxonMobil, despite learning of the drop in pressure in the Pegasus Pipeline, as early as 1:15 PM, did not intinedifttdy report ihc incident to the National Response Center as required by law. Instead, ExxauMabil waited upproximatcly three (3) hours until its employees were on the scene, reporting at 4:06 p.iu. 22 RECEIVED 03/28/2016 15:29 5014504948 FC CIRCUIT CLERK To: Faulkner County Circuit Court Clerk Page 25 of 37 2016-03.28 20:28:42 (GMT) Duncan Firm P.A. (5 From; Duncan Firm P.A. (Ph: 501- 125, Once the Pipeline faHcd, (tie Canadian Tar Sands with toxins spread quickly through residents and affected a large area around Muyflower, including the PIainlilTs' and class mumbcn>' property. The Tar Sands migrirtcd into a sionn druin and by 3:09 p.m. was migrating toward Lake Conway. Id. The Canadian Tar Sands released from the Pegasus Pipeline cmiitcd dangerous and poisonous toxins into the air contaminating the air quality, making it difficult to breath and violating air quality standards for residents in the cutnmunity forcing residents to evacuate their homes. Local emergency personnel began evacuating liomcs bscause the release ol' Tar Sands wiu harmful to people and thuir real property. Id. The hiunrdous Tar Sands substance flowed and migrated inio the Northwoods Subdivision along North Starlite Road into a bar ditch adjacent to a Union Pacific Railroad line, into a creek and into a tributary to a cove of Lake Conway. which is also a tributary to the Arkansas River. Poisonous hydrogen suWde rclcaiicd into the air and polluted houses and real property in the Mnynower. including Lake Conway, its coves and inlets. The Tar Sands and toxic chemicals physically entered contaminated and polluted Lake Conway, exhibiting residue within Lake Conway, and contaminnred. polluted ami inigrntcd onto homes and real property surrounding Lake Conway, its cuvcs and inluts. including Plainlinii* and putative class members' rcnl property. 126. The Pipeline Pumps were not shut down for well over 98 minutes, contrary to Exxon's information provided to the public that they were shut down in ]6 minutes. The lull volume of heavy Tar Sands remained in the Pipeline and the Tar Sands flow to the Pipdinc was not shut off until several hours later. Thi; Pipeline continued leaking fur two days, contrary to information publicly provided by the Defendants to the public and media. Id. Defendant suppressed material tacts about the Tar Sands spill, omitted significant material information provided to the public, and failed to provide tull disclosure of rclcvBnt and material informarion. 25 RECEIVED 03/28/201615:29 58145049<(8 FC CIRCUIT CLERK To Faulkner County Circuit Court Clerk Page 26 of 37 2016.03.26 20:28:42 (GMT) Duncan Firm P.A. (S From: Duncan Firm P.A. (Ph: 501. Detendants' actions are consistenl wild and port of their corporate practice in Arkansas of not reporting prior problems with the Pipeline, including prior oil spills in Arkansas and other states where the ExxonMobil Pipeline runs underground. 127, The release ol' the oil afl'cclcd a large area around Mayflowcr, including (he Plainlifls' property. The crude oil emitted toxins into (lie air contaniinaling (he air quality for residents in (he community. 128. The release of the oil contaminated rcftl property, migrntcd into water sources and hnpactcil uir quality for citizens located in Mayllowcr, including the Pluinliffs who uxperieDced personal and properry injury. 129. Data provided by Gxxon indicates the hazardous material being transported through th<; Mayflower aren, includes, but is not limited to: Bcnzenc, Cyclohexane, Ethyl Bunzcnu, Hydrogen SuIHdc, N-Hcxanc. Naphthalcnc, Pulynuclcar Aromatic Hydrocarbons, Sultur, Toluene and Xylenes. The hazardous materials being transported through Arkansas and which Maytlower citizens, including PlaintilTs. were exposed to are known to pose serious health elTects, inchuling lung dnmagc il* aspirated, skin cancer, iiritant to eyes, mucaus membnines and lungs, uuuscu. iinconsciousness, loss oruoordination, centrn) nervous system depression, narco.sis uiid death, Benzene is associated with cancer {acute myeloid leukemiu and myelodysplastic syndrome). 130. Hydrogen sutfidc is the chemical compound with the formula H2S. It is a cotortcss gus with the characteristic fuul odor of rotten eggs, (t is hCttvier than air, very poisonous, corrosive, toxic, flammable and explosive. Hydrogen sulfide often results from bacterial breakdown of organic matter in the absence of oxygen, It is considered a brondspectrum poison, meaning it can poison several different systems in the body, ulthou^h the 24 RECEIVED 03/28/2016 15:29 5014504948 FC CIRCUIT CLERK To: Faulkner County Circuit Court Cterk Page 27 ot 37 2016.03-28 20:28:42 (GMT) Duncan Firm P.A. (5 From: Duncan Firm P.A. (Ph: 501- nervous syslem is Ihe most anected. The toxidty oF hydrogen sulfide is i-imilar to hydrogen cyuciide. The liazurdous crude oil substance also conlains polycyclic aroniatic compaiuids (PACs), which muy cause cancer to skin, lung and other sites un the body and arc toxic. Moreover, the crude oil and tar sands mixlurc is also highly nammablc, which can release vapors (hat readily form llainmabte mixtures and can flash or explode if ignited or can ignite by accumulation of static charges, 131. The rupture of the Pegasus Pipeline was in the northern section of the Pegasus Pipeline. AlU'r (he rupture, ExxonMobil seut the fractured segvncut of the Pegasus Pipeline to I lurst Labs in Texas for an "independent" analysis. 132. The fracture origin area contained seven hook cracks in length (rom .250 to 3 inches. The largest hook crack in the Iracturc origin arcu was 3.150 inctius deep. There were 4000-plus unomalics in the frncturc origin are.t (dents, bad welds, corrosion - in places, the depth ofthe anomaly wasi up to 70% ofthe 5/16-inch pipe thickness), 133. Hurst Labs has a long history of affiliation with BxxonMobil. Mursr Labs has served as consultant aud analyst for ExxonMobU oa many prior occasions. II(in>t Labs was not «n independent anulysl in the evttluatiun of the cause ol' the Pegasus Pipeline failure resulting in (be Mayflower Oil Spill. 134. Before the IIurst report was released to the public, ExxonMobil was given a drall of (he report and allowed to make edits that would be incorporated into the final Hurst report released to the public. Exxon mndu edits fuvurable to its perception as pipeline operator. 1.15. The original Hurst Report also noted (hat the "fracture, which originated during service, resulted in the leakage of the crude oil," 25 RECEIVED 03/28/2816 15:29 5014504948 FC CIRCUIT CLERK To Faulkner County Circuit Court Ctork Page 28 of 37 2016-03-28 20:28:42 (GMT) Duncan FITITI P.A. (5 From: Duncan Firm P.A. (Ph: 501- 136, Tlie original Hurst report als>o noted there was no uoniitruction or digging, localized rioodiny or other gniiwd movemenls reported at the failure location. 137. The original Hurst Report also included u detailed section on Pipe Manufacturing Process, referring to the prc-1970 URW pipe manulacluring process. 138. SigniHcantly, the original Iturst Report did not include the conclusion that the weakened ERW seam was caused primarily by (lie presence of original manufacturing detects, 139. The original Hurst report concluded that the hook cracks in the Pegasus Pipcliric were present ia Ihu scam of the pipu for un unknown period oftutit; prior to the failure, 140. Despite its substantial edits to the Hurst Metallurgical Report, ExxonMobil communicated to the public that an "independent laboratory concluded that the root cause of the spill was original manufacture ilefccts." 141. The environmental footprint of the Pegasus Pipeline for personal injury damages, actual damages, special damages, consequential Uamages, and all other damages permitled by Arkansas law, extends through the MayHower community and Lake Cunway communities. Defendants' knowing, reckless willful and wanton coq>orate actions were deliberately and puqwsufully calculated, directed toward the Mayllowcr cominnnily and Lake Conwuy commimitieii where Defendants knew or should have known in though stated word-lbr-word. 155. Nuisance is an unreasifinablc intcrl'crcncc or invasion of one's person or real property, which interferes with the person's life and use and enjoyment of the real property. 156. At all relevant times alleged herein. Defendants owned and failed to inspect and maintain their defective and unsafe Pipeline, which was transporting erode oil and other substances such as tar sands with toxins from Putoku, Illinois to Nedcrlnnd, Texas and through a large section of the State of Arkansas. 157, Defendants' unsafe and defective pipeline and wrongful common course of corporate policy, pattern, practice and conduct, which includes, but is not limited to, failing to maintain, inspect, evaluate, operate and analyze the dclcctivc pipeline has tlircctly ami permanently interfered with the environment and PlaintilTs' use, enjoyment and value of their homes and real property. 158. Defendants' unsafe and defective pipeline and common course of corporate policy, pattern, practice and conduct, which includes, but is not limited to, failure to maintain, inspect, evaluate, operate und analyze (he delective pipeline has resulted and directly and proxiinately caused and resulted in damages to the Plaintifl's. 159. Plaintiffs respectfully pray for damages, which were a direct and proxhtiate cause and result of Ourendunte" nuisance as pennitteil by Arkunsfts law. • C Negligence 160. Plaintiffs re-allege the preceding paragraphs and incorporate them by reference herein ns though stated word-for-word. 29 RECEIVED 03/28/2016 16:29 5014504948 FC CIRCUIT CLERK ro Faulkner County Circuit Court Cterk Page2of7 2016.03-2821:28 19 (GMT) Duncan Firm P.A. (5 From-Duncan Firm P.A. (Ph; 501- 161. Defendants transport hazardous liquid through the Pegasus Pipeline, which runs through the State of Arkansas. including numerous, nnvigable waterways and protected water resources. Ddcndants, pursuant tu Arkun&as cunitnun law, their uctions and course of conduct, and oil and gas industry standards have a non-dclegablc duty to maintain, inspect and manage the iutegrily of the Pegasus Pipeline to ensure it is safe throughout the entire course of the pipeline. The Pegasus Pipeline is maintained in a defective, unsafe condition under a predominating, common course of corporate policy, pattern, practice and coiKhict which includes but is not limitml to the same or siniilar inspccliun, niaintcnancv. evaluation, upcration and anulysis, 162. It is foreseeable that the Pegasus Pipeline would ruprure and leak, inter alia, as the bRW pipeline was manufactured prior to 1970, and the government notified oil and gas companies in the inihistry of the problems with such pipelines for catastrophic icaks in the 1980's, Further, Exxon had a problem near Corsicana, Tcxns with the pipeline involving u major lailure and crude oil leak, fire and property damage in 1987. 163. Defendants' unsafe and defective pipeline and common course of corporate policy, pattern, practice and conduct, which includes, but is not limited to, failure to maintain, inspect, evaluate, operate and analyze the delective pipeline was a brtyich vf its non-tldegable duty to maintain a safe pipeline, has resulted in nnd directly and proximately caused damages to the Plaintil'ts. 164. Plaintiffs respectfully pray for damages, which were a direct and proximate cause ami result of Dufcndants' negligence as permitted by Arkansas law. D. Punitive Damages 165. Plaintiffs re-allege the preceding paragraphs and incorporate them by reference herein as though stated word-for-word. 30 RECEIVED 03/28/2016 16:29 5014504948 FC CIRCUIT CLERK l<> Faulkner County Circuit Court Clerk Page 3 of 7 2016-03.28 21:28:18 (GMT) Duncan Firm P.A. (5 From: Duncan Firm P.A.(Ph; 501- 166. The Defendants knew that the Pegasus Pipeline was made with pre-1970 ERW pipe, there was a high susceplibility ofpre-1970 ERW pipe seum failures, and the Pipeliue's transported material contained dangerous toxins. Despite this knowledge, the Dcfcinlants acted recklessly by railing to maintain, inspect, evaluate, operate, and analyze the defective Pipeline. 167. The Defendants intentionally misrepresented the risks of the Pipeline and the cause of the Mayflower oil spill to (lie Plaintiffs and other members of the public and intcationully failed to immediately report the Mayflowcroil spill. 168. Defendants1 knowledge, afTinuativc failures to act, und uffirmativc, intentional misrepresentations described in the foregoing paragraphs, constitute deliberate indifference and conscious disregard for the safety of Faulkner County residents. The Uetendants knew or ought to have known in the light of the sunvunding circumstances that their conduct would naturally and probably result in injury or damage and that they continued such conduct with malice or in reckless disregard of the consequences from which malice may be inferred. The Plaintiffs therefore pray for an assessment ol' punitive damages in an amount suflicient to punish ExxanMobil and to deter others from like conduct. VIH. DEMAND FOR JURY TRIAL 169. Pursuant to Ark. R, Civ. P. 38, Ark. Const. Art. 2, § 7, Aik. Code Ann. § 16-64- 103. PlaintitTs hcnsby demand a trial byjuryol'all issues ol'tact, 170. Plaintiff's reserve the right to further amend their Third Amcndtsd Complaint in accnnlancc with (he proof, as lurthcr discovery is obtained, (« correct or amend any allegations and as permitted by the Arkansas Rules of Civil Procedure. 31 RECEIVED 03/28/2016 16:29 5014504948 FC CIRCUIT CLERK i'; Faulkner County Circuit Court Clerk PagB4of7 2016.03-2821:28:19(GMT) Duncan Firm P.A. (5 From: Duncan Finn P.A, (Ph: 501- IX. DEMAND AND PRAYER 171. PlaintilTs respectfully pray tins Court enter judgment against Derendants as follows: (a) For compensatory, actual, medical, special ami consequential damages in an amount in excess of the amount required for federal diversity jurisdiction; (b) For consequential, medical and special damages, including medical monitormg; (c) For personal and real property damages, whether temporary or permanent, as permitted by Arkansas law; (d) For diminishmunl of value or waste ol' property, including timber, crops or other land, or, alternatively, loss of positive appreciation of property value as permitted by Arkansas law; (e) For change of fair market value as permitted by Arkansas law; (I) For damages impact to real and personnl property, including loss of insnrability or uollateializution. as penniued by Arkansas law; (g) For aggravution ol' prior health and mental conditions and past, present and future impact and hann to the physical and mental well-being of PlaintitTs; Qi) For reasonable costs and expenses of any necessary help or assistance in tlttf home or for enjoying property after March 29,2013; (i) For loss of peace, comfort, use and quiet enjoyment of property; 32 RECEIVED 03/28/2016 16:29 5014504948 FC CIRCUIT CLERK •i o f-aulkner County Circuit Court Clerk Page 5 ot 7 2016.03-28 21:28:19 (GMT) Duncan Firm P.A. (5 From: Duncan Firm P.A. (Ph: 501- (j) For physical disturbance, inlerrerence and intrusion, air and noise pollution; (k) For toss of enjoyment of liru, hedonic damages, anxiety, distress and emolional anguish as permitlcd by Arkansas law; (1) For reimbursement of actual and real costs and expenses incurred, including, but not limited to relocation costs, travel costs, rental costs, replacement of property costs and ati other costs and expenses incurred as u result of (he March 29. 2013 Pegasus Pipeline nipture; (m) For all other restitution and damages permitted by Arkansas Jaw; (n) For double or treble damages as permitted by Arkansas law; (o) For punitive dumuges; (p) For pre-judgmcnt interest and post-judgment interest at the maximuni rate allowed by law; (q) For costs, expenses and lees, including expert lees; (r) For attorney's tees as permitted by law; and (s.) For all other riilief deemed, equitable, approprialu und just. 33 RECEIVED 03/28/2016 16:29 5014504948 FC CIRCUIT CLERK 1u f-'aulknar County Circuit Court Clerk Pagc6