ExxonMobil Will Continue to Fight Excessive Court Ruling

Reacting to Monday's reduction of $8.3 billion in the Mobile Bay royalties contract dispute, ExxonMobil called the remaining $3.5 billion punitive judgment "still excessive and unjustified," and declared it would appeal the ruling by the Alabama Circuit Court.

The company said the remaining amount is clearly contrary to guidelines established by recent United States Supreme Court decisions on punitive damage awards.

"ExxonMobil's conduct was absolutely proper and lawful, and we believe the appeals process will support our position," said Stuart McGill, president of ExxonMobil Production Company.

Since production began at Mobile Bay, the company has paid more than $1 billion in royalty and lease payments directly to the state. 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.

"We will continue to vigorously defend ourselves against these unjust charges," concluded McGill.