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ENVIRONMENTAL IMPAIRMENT AND EMPLOYEE SAFETY DOMINATE CONCERNS OF ENERGY COMPANIES

 ENVIRONMENTAL IMPAIRMENT AND EMPLOYEE SAFETY
 DOMINATE CONCERNS OF ENERGY COMPANIES
 NEW YORK, May 22 /PRNewswire/ -- Environmental exposures continue to threaten the financial stability of U.S. oil, gas and natural resources companies, according to a national survey conducted by Alexander & Alexander Services Inc. ("A&A") (NYSE: AAL).
 Ninety-six percent of energy executives targeted the need to modify the joint and several liability doctrine. Additionally, for the fourth consecutive year, court rulings on liability coverage for cleanups were identified as a priority.
 "Energy companies are staggering under the financial burden of environmental liability," reports Robert H. Moore, A&A senior vice president. "In addition to being held principally responsible for the cleanup of national sites under Superfund, many firms are paying substantial penalties for relatively small amounts of alleged pollution. This reflects the joint and several liability doctrine."
 This year's findings also registered significant interest in workers compensation and health care expenses. Increasing costs from workers comp residual market loading rose in importance from fifth place last year to second this year with a 92 percent rating.
 Energy officials also cited the need to implement corporate policies to prevent job-related accidents and injuries as a leading concern.
 Dr. Jeff Harris, director of research and development for the Alexander Consulting Group's Health Strategies Group, notes, "We have found that workplace safety and proactive injury management programs operate best when they are broad-gauged, functionally integrated and actively encouraged by top management."
 Another workers comp issue, limiting employers' ability to review job applicants' claims histories, received an 81 percent ranking.
 To curb companies' workers comp costs and related health care expenditures, A&A has created a strategic workers comp consulting group from a cross-section of its brokering, consulting and risk management services. Its job is to develop solutions to the complex challenges posed by these interrelated issues.
 The energy group continues to advocate capping non-economic and/or punitive damage awards. Such insurance industry issues as the unpredictability of price swings and the use of alternative risk financing mechanisms also figured prominently.
 "The emphasis on the use of alternative risk financing mechanisms reflects a keen interest in exploring less volatile options to insurance pricing," comments Moore.
 Unfunded retiree health care liabilities and spiraling health care costs rounded out the top 10 issues for this group.
 A&A's fifth annual survey focused on 98 legislative and regulatory issues. Typical respondents were executives in companies with sales of $250 million or more, with half generating sales of at least $1 billion.
 The research was undertaken by A&A Government & Industry Affairs Inc., in Washington, D.C., and Radford Associates, part of the Alexander & Alexander Consulting Group Inc., a human resource management consulting company.
 A&A is a global insurance brokerage, risk management and human resource management consulting company serving clients from offices in more than 80 countries.
 ALEXANDER & ALEXANDER 1992 SURVEY
 Oil, Gas and Natural Resources Executives
 10 Leading Public Policy Concerns
 Modification of joint and several liability doctrine.........96 pct.
 Workers comp: Increasing residual market costs .............92 pct.
 Caps on punitive damages awards..............................89 pct.
 Court rulings on liability coverage for cleanups.............85 pct.
 Workplace safety.............................................85 pct.
 Unpredictability of price swings in insurance market.........85 pct.
 Limiting employers' ability to review job
 applicant's workers comp claim history..................81 pct.
 Use of alternative risk financing mechanisms.................77 pct.
 Unfunded retiree health care liabilities.....................77 pct.
 Spiraling health care costs..................................73 pct.
 -0- 5/22/92
 /NOTE TO EDITORS: Copies of the report are available from A&A Services Inc., Corporate Communications, 1211 Avenue of the Americas, New York, N.Y. 10036./
 /CONTACT: Cathy Aiello of A&A Services, 212-840-8500/
 (AAL) CO: Alexander & Alexander Services Inc. ST: New York IN: OIL SU:


TQ -- NY022 -- 3283 05/22/92 11:52 EDT
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Date:May 22, 1992
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