Seeking to set aside what it called an “inappropriate” multi-billion verdict in which a jury awarded the State of Alabama $87 million in compensatory damages and $3.4 billion in punitive damages over unpaid royalty fees, ExxonMobil Corp. has filed an appeal with the Circuit Court of Montgomery County, AL. The case, decided last month, centered on charges that the energy giant (then Exxon, before its merger with Mobil) had underpaid up to $87.7 million in royalties on the Mobile Bay natural gas project in the Gulf of Mexico (see NGI, Dec. 25, 2000). The jury said it set the damages by tripling ExxonMobil’s annual production from 13 natural gas wells located on the Alabama coast in the disputed time. The long-standing contract dispute originally questioned whether an additional $40 million in royalties was due the state and exactly how the royalties should be calculated. To date, ExxonMobil said it has paid Alabama $1 billion in royalties and bonus payments under the lease agreement. “ExxonMobil believes that if this verdict goes unchallenged, other legitimate businesses in the state of Alabama – businesses that, like ExxonMobil, help expand the tax base, add to the economy and create new jobs – will also be potential targets,” the company said in a written statement. “Any company engaged in an open and reasonable contract dispute in the state will not be able to have reasonable disagreements with regulators without running the risk of being accused of fraud and being subjected to possible punitive damages.”
Seeking
Articles from Seeking
ExxonMobil Appeals Royalty Lawsuit
Seeking to set aside what it called an “inappropriate”multi-billion verdict in which a jury awarded the State of Alabama$87 million in compensatory damages and $3.4 billion in punitivedamages over unpaid royalty fees, ExxonMobil Corp. filed an appealyesterday with the Circuit Court of Montgomery County, AL.
SDG&E’s Bid for Price Caps Hits Snag
It could be quite some time before FERC responds to San DiegoGas and Electric’s (SDG&E) emergency request seekingreinstatement of price caps on short-term capacity releases for gastransportation service to the California market.
Maine Group Seeks to Stay Hike in ICAP Charge
Maine regulators, consumer representatives and industrialcustomers are seeking a stay of a FERC order directing the NewEngland ISO to raise its ICAP deficiency charge to $8.75 per kW/Mretroactive to Aug. 1. The current charge is 17 cents.
PG&E, Sempra Seek FERC OK for North Baja Project
PG&E National Energy Group, an affiliate of PG&E Corp.,has formally filed an application at FERC seeking the green lightto build the U.S. leg of a 215-mile natural gas pipeline that wouldextend from the Arizona-California border through northern Baja inMexico.
PJM Seeks RTO Status, Owners Pledge Grid Upgrade
In seeking FERC certification as a regional transmissionorganization (RTO) last week, PJM Interconnection LLC and its ninetransmission owners claimed the regional independent systemoperator (ISO) already possessed the characteristics and functionsrequired by the Commission’s Order 2000 to qualify as an RTO.
PJM Seeks RTO Status, Owners Pledge Upgrade
In seeking FERC certification as a regional transmissionorganization (RTO) yesterday, PJM Interconnection LLC and its ninetransmission owners claimed the regional independent systemoperator (ISO) already possesses the characteristics and functionsrequired by the Commission’s Order 2000 to qualify as an RTO.
Pepco Challenges MD Marketer Ruling
Washington D.C.-based Potomac Electric Power Company (Pepco) isseeking a stay in a lower court in Maryland of a July 1 orderissued by state regulators, which restricts the businessrelationship between in-state electric and gas utilities and theirnon-regulated subsidiaries.
FERC Aid Sought in Restoring $750 Price Cap in CA
Morgan Stanley Capital Group Inc., a power marketer, is seekingan emergency cease and desist order directing the California ISO’sgoverning board to overturn its decision reducing the power pricecap to $500/MWh and to restore the temporary $750 cap. It furtherhas asked FERC to stay the ISO’s price-cap authority, and to stripit entirely of that power when an existing resolution expires inOctober.
Cease, Desist of Cal ISO $500 Price Cap Sought
Morgan Stanley Capital Group Inc., a power marketer, is seekingan emergency cease and desist order directing the California ISO’sgoverning board to overturn its decision reducing the power pricecap to $500/MWh and to restore the temporary $750 cap. It furtherasked FERC to stay the ISO’s price-cap authority, and to strip itentirely of that power when an existing resolution expires inOctober.
