ExxonMobil to Pay Alabama $120M

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ExxonMobil to Pay Alabama $120M

01/11/2008
MONTGOMERY, Ala. -- Major energy company ExxonMobil will pay the state of Alabama $120 million in outstanding natural gas royalties, The Associated Press reported.

Montgomery Circuit Judge Tracy McCooey sided with ExxonMobil over the amount to pay the state to end the legal battle over the amount of royalties, the report stated. McCooey said ExxonMobil's calculation of $120.4 million in royalties and interest was correct, according to the AP. State attorneys argued for $142.8 million, the AP reported.

The issue may not be concluded, as state attorney Robert Cunningham told the AP the state government will appeal the judge's ruling to the Alabama Supreme Court.

In November, the state Supreme Court threw out most of a $3.6 billion judgment against ExxonMobil in a natural gas royalty dispute, but left $51.9 million in compensatory damages, based on figures from 2003, the AP reported. The Supreme Court sent the case to McCooey to update the numbers to present time, according to the AP.