1. Exxon And Salazar In Settlement On Offshore Leases.
- Subjects
- *
ACTIONS & defenses (Law) , *FEDERAL regulation ,UNITED States district courts - Abstract
The Exxon Mobil Corporation and Kenneth Salazar, the interior secretary, agreed to settle a lawsuit in which Exxon, the world's largest publicly traded oil company, challenged the government's decision to cancel offshore leases that may yield ''billions of barrels of oil,'' according to a court filing. The accord ''will allow Exxon Mobil to develop this very large, but technically challenging, resource as quickly as possible using a phased approach,'' Patrick McGinn, a spokesman for Exxon, said in an e-mail. Exxon sued on Aug. 12 over a ruling by the department that canceled Gulf of Mexico leases for the so-called Julia unit. The company and the government entered into a settlement agreement on Dec. 30, according to a filing Friday in United States District Court in Lake Charles, Louisiana. Exxon said in its complaint that it sought a suspension for its Julia leases in 2008 because of drilling complexity. It cited federal regulations that allow oil oil producers to suspend production in their fields, partly ''to facilitate proper development of a lease.'' The Interior Department denied the request in 2009, stating that the company''had not demonstrated a commitment to production'' according to court papers. Unsuccessful appeals followed. [ABSTRACT FROM AUTHOR]
- Published
- 2012