Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Judge Rules Against Alaska on Point Thomson Lease Rights

change text size

Exxon's Point Thomson Site
(Click to Enlarge)

Point Thomson
(Click to Enlarge)

HOUSTON (Dow Jones), Jan. 13, 2010

An Alaska Superior Court judge has ruled that the state improperly canceled Exxon Mobil Corp.'s (XOM) lease rights to develop Point Thomson gas fields on the North Slope.

Judge Sharon Gleason said the Department of Natural Resources commissioner did not follow proper procedures in hearings on the ExxonMobil case, resulting in a "denial of due process" to the company, according to court documents. The decision was released Monday.

ExxonMobil said the company is "encouraged" that the judge has agreed with its position. "We are studying the decision issued by Judge Gleason to consider the full implications for Point Thomson development," said David Eglinton, an spokesman with Exxon Mobil said in an emailed statement.

Several years ago, Alaska's government canceled Exxon Mobil's license to drill in several leases at Point Thomson because of the company's failure to develop the gas-rich area over several decades. Exxon Mobil now says that the area's resources are vital to the successful development of a pipeline to bring Alaskan natural gas to the lower 48 states.

The license, called an "operating unit," had given Exxon Mobil control over development of the oil and gas leases that it and other oil majors held at Point Thomson. The state has revoked most of those leases, and the companies are struggling to get them back.

Exxon Mobil, the largest U.S. oil company by market value, is pursuing a number of legal actions to get the operating unit back, both through administrative proceedings and in court.

Copyright (c) 2010 Dow Jones & Company, Inc.

Related Companies

Most Popular Articles
From the Career Center
Jobs that may interest you
Shore Base Manager
Expertise: Logistics Coordinator, Materials Management , Supply Chain Management
Location: Cyprus
 
Recruitment Consultant
Expertise: Business Development, Human Resources, Sales and Marketing
Location: Various
 
Project Director - Offshore Floating Prodcution Platforms
Expertise: Engineering Manager, Mechanical Engineering, Project Management
Location: Houston, TX
 
search for more jobs