ExxonMobil Appeals Alabama Verdict

Calling the $3.5 billion punitive judgment in the Mobile Bay royalties contract dispute "still excessive and unjustified," ExxonMobil filed a notice of appeal with the Alabama Supreme Court in Montgomery.

The company said the 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 look forward to the opportunity to present the facts of this case to the Alabama Supreme Court," 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. This year, the U.S. Department of the Interior honored ExxonMobil for excellence in mineral royalty and production reporting and compliance with its Mineral Revenues Stewardship Award.