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Quote of the Day - Anything that can be done chemically can be done by other means. - William S. Borroughs

MTBE May Have Lost Its Final Battle

Methanex Corporation of Canada lost its bid through NAFTA to challenge California's ban of MTBE.  Methanex produces the additive in Canada, and wanted to sell it to gasoline producers who shipped gasoline here.  The challenge took the form of a lawsuit, defended by the attorney general.
 
It took five years of litigation for a three-judge NAFTA panel to decide the case.  If we had lost the case, California would have had to lift its ban on the additive.  Instead, the NAFTA judges ordered Methanex to pay $4 million to cover legal costs.
 
Sure that's a tidy sum, but Methanex was seeking reimbursement of a cool $1 billion for its lost revenue.  This challenge, however, wasn't the first.  MTBE advocates have lost a series of battles, culminating in this (perhaps) death blow. 

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Posted by J. Craig Williams on Tuesday, August 09, 2005


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