Phillips Signs Agreement with Marine Spill Response Corp.

Business Editors/Energy & Environmental Writers

BARTLESVILLE, Okla.--(BUSINESS WIRE)--Oct. 4, 2001

Phillips Petroleum Company (NYSE:P) today announced it has entered into an agreement with Marine Spill Response Corporation, a national oil spill response organization, through its subsidiary Polar Tankers, Inc.

Under the terms of the agreement, the Marine Spill Response Corporation will serve as a primary response contractor for Polar Tankers on the West Coast and in Hawaii. Polar Tankers manages the marine transportation of Phillips' Alaska North Slope production.

Phillips' membership in Marine Spill Response Corporation's funding organization, Marine Preservation Association, is effective September 26. Marine Spill Response Corporation is the largest dedicated, oil spill response program in the United States. The Marine Spill Response Corporation is classified as a primary responder under the Oil Pollution Act of 1990.

"Phillips is pleased to contract with the Marine Spill Response Corporation and to be a part of the Marine Preservation Association," said John Hennon, president of Polar Tankers, Inc. "Our focus is on safety and prevention of harm to the environment in the waters in which our ships sail. At Polar Tankers, we pride ourselves on high standards for innovation and environmental protection."

"The addition of Phillips Petroleum is a significant expansion to our list of member companies," said Robert Aldag, president of Marine Preservation Association. "As an active member of Marine Preservation Association, Phillips will have immediate access to all Marine Spill Response Corporation services, should the need arise. In addition, their membership in Marine Preservation Association clearly demonstrates that Phillips cares about the environment and understands their duties as a responsible corporate citizen. We are very pleased to have them aboard."

The Marine Preservation Association is a non-profit, tax-exempt corporation organized to help all petroleum and energy-related industries to address problems caused by marine oil spills. Marine Preservation Association has responded to the mandate of the United States' Oil Pollution Act of 1990 by providing private industry funding for the Marine Spill Response Corporation to respond to oil spills in U.S. coastal waters and certain rivers and harbors.

Polar Tankers, based in Long Beach, Calif., currently operates a fleet of five vessels ranging in size from 50,000 to 190,000 DWT dedicated to the Alaskan crude trade. These ships include the POLAR ENDEAVOUR, the first of five, state-of-the-art Millennium Class double-hulled tankers. The Millennium Class tankers are the first crude oil carriers being built specifically for the Alaskan trade in compliance with the Federal Oil Pollution Act of 1990. The ships meet and/or exceed existing and proposed environmental regulations and have set new standards for innovation and environmental protection.