ExxonMobil Wins Alaska Superior Court Trial Over Reimbursements to Municipal Governments

Business Wire, July 17, 2002

Business Editors

An Anchorage jury today agreed with ExxonMobil (NYSE:XOM) that it had fully reimbursed six municipal governments for oil spill response labor and expenses stemming from the 1989 Exxon Valdez accident. The Alaska communities of Cordova, Seward, Kodiak Island Borough, Port Lions, Old Harbor and Larson Bay sued the company for $12 million ($30 million with interest) for expenses they claimed they underestimated some 13 years ago.

In the aftermath of the Valdez oil spill, ExxonMobil worked closely with local communities to minimize the spill's adverse impacts. This cooperation with municipal governments, native corporations, and tribal councils was an important part of the unprecedented $3.5 billion dollar cleanup, compensation, and settlement efforts undertaken by ExxonMobil.

Within two weeks after the spill, ExxonMobil put programs in place to reimburse spill-affected municipalities for their oil spill expenditures. In response to requests submitted to ExxonMobil, the plaintiffs in this trial were reimbursed more than $3.7 million for spill related labor and expenses. Still, a few municipal officials testified at trial that they and others grossly understated time spent on spill response activities in the reimbursement requests submitted to Exxon in 1989-91. Taking those revised estimates, the plaintiffs' expert witness created a claim for an additional $12 million.

"The Valdez oil spill was a tragic accident that ExxonMobil deeply regrets. While certainly the plaintiff municipal governments were impacted by the spill and its response, we are gratified that the jury agreed that the municipal governments were fully compensated over a decade ago," said Lee R. Raymond, chairman and CEO of ExxonMobil.