ExxonMobil to Appeal Reduced but Unwarranted Awards in Grefer Case.

IRVING, Texas -- While a Louisiana appeals court substantially reduced punitive damages against Exxon Mobil Corporation (NYSE:XOM) in connection with a civil lawsuit yesterday, ExxonMobil acted responsibly in the Grefer matter and believes that the compensatory and punitive awards are still excessive and unjustified.

The Louisiana Fourth Circuit Court of Appeal reduced punitive damages from $1 billion to $112 million and left unchanged compensatory damages of $56 million.

"Not only were punitive damages unwarranted because ExxonMobil acted responsibly but the court's ruling allows punitive damages for conduct that occurred long before the punitive damages statute took affect," said Exxon Mobil Corporation General Counsel Charles Matthews. "We are also disappointed that the court has upheld a jury award for a clean-up far in excess of that required by the Louisiana Department of Environmental Quality regulations. We intend to appeal this decision."

The Louisiana Department of Environmental Quality had determined that the naturally occurring material on the Grefer property was not considered to be at dangerous levels and that it represented no threat to human health or the environment. The vast majority of the property has no elevated levels of contamination.

Less than one percent of the land contained material that was above regulatory limits. ExxonMobil developed and implemented handling and safety procedures years before the State of Louisiana issued regulations governing the naturally occurring material involved, and informed and educated employees and contractors about the issue. Approximately 99 percent of the Grefer property exhibited contamination levels equal to or less than what is found in most soil throughout Louisiana.

Nonetheless, ExxonMobil had always been fully prepared and willing to remediate the Grefer property to satisfy state requirements. In fact, ExxonMobil made such an offer to the Grefer family before the matter went to trial.

Former Louisiana Governor Mike Foster and the Louisiana Department of Environmental Quality (LDEQ) had filed an amicus brief supporting ExxonMobil's position regarding the applicability of LDEQ's standards.