In the first matter, ATP and Legacy Resources Co., LLP and agent ("Legacy") were in a dispute over a contract for the sale of an oil and gas property. In the May 2003 arbitration proceedings Legacy alleged that it was owed $12.3 million plus interest at 16% since December 2001, attorneys' fees and expenses for a total estimated claim of over $17 million through the end of 2003. On December 19, 2003 ATP was notified by the arbitration panel of its decision that Legacy recover a total amount of $8.2 million, which amount includes all damages, interest, attorney's fees and expenses. Interest on that amount accrues from the date of the award by the panel until the date of payment.
In a separate matter, in August 2001, Burlington Resources Inc. filed suit for $1.1 million in damages against ATP alleging formation of a contract with ATP and the breach of the alleged contract. On December 23, 2003 Burlington agreed to dismiss the lawsuit.
T. Paul Bulmahn, President and Chairman of ATP commented, "We are delighted to see the Burlington matter dismissed and, while we are disappointed in having to pay any amount associated with the Legacy dispute, we understand the arbitration process and the matter was resolved at an amount significantly below its original claim."
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