Arkansas Attorney General Dustin McDaniel said a 38-page proposal from Exxon for homeowners was difficult for residents affected by a March oil spill to understand.
"These complex options are not what residents of this area deserve," he said in a statement. "They all breathed the same air, faced the same inconvenience and had their lives upended. Exxon can and should do more."
Exxon offered to buy some of the homes outright or to provide compensation for property owners affected by the spill. McDaniel said the offers were too complex and variable.
About 5,000 barrels of oil spilled from a 22-foot gash in the Pegasus oil pipeline in late March. The pipeline was carrying a diluted form a Canadian crude oil at the time of the spill.
Exxon has faced criticism of its remediation plan. The Sierra Club said a few thousand barrels of oil are "missing," though Exxon said that claim didn't account for the variety of cleanup operations under way.