ExxonMobil says Mobile Bay royalties decision defies common sense
Posted: 16 November 2003
Exxon Mobil Corporation called the recent decision in the Mobile
Bay royalties dispute by an Alabama District Court jury unjustified
and excessive.
"The company did not engage in fraud, no evidence of fraud
was established at trial, and fraud should never have been considered
by the jury," said Sam Franklin, lead counsel for ExxonMobil.
"The punitive award in this case defies common sense."
"In addition to being unjustified, the $11.8 billion punitive
award is excessive -- more than 180 times the $63,500,000 compensatory
damages. We intend to appeal this decision to the Alabama Supreme
Court in light of the recent U.S. Supreme Court decision in Campbell
versus State Farm that limits the size of punitive awards,"
said Franklin.
Since 1993, ExxonMobil has paid more than $1 billion in royalty
and lease payments to the State, and the amount in dispute by comparison
represents less than 5 percent of that amount.
ExxonMobil repeatedly advised the State of its payment method and
calculation of royalties, according to Franklin. In addition, the
company was advised by the State that any dispute over methodology
would be resolved in the audit process.
Stuart McGill, president of ExxonMobil Production Company, said,
"ExxonMobil's conduct during its long history in Alabama simply
does not support the State's charges or this decision."
ExxonMobil's total capital investment in Alabama currently exceeds
$3 billion and the company employs more than 200 people and thousands
of contractors, and more than 200 retirees live in the State. Since
1995, ExxonMobil has contributed nearly $3.5 million to charitable,
civic and educational organizations throughout Alabama.
Last year, the U.S. Department of the Interior honored ExxonMobil
for excellence in mineral royalty and production reporting and compliance.
For more information see www.exxonmobil.com.
Posted by Richard Price,
Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
