Judge sides with Exxon in Alaska

Exxon's lack of progress developing the Point Thomson unit, a collection of gas drilling leases on the North Slope, has created a state versus company dispute for years, the Anchorage Daily News reported Wednesday.

Exxon first signed leases for the area in 1977.

The state has since pressed for development, eager to reap fees and taxes production of the unit would create.

Last year, DNR Commissioner Tom Irwin said Exxon's plan lacked credibility and terminated Exxon's arrangement.

State Superior Court Judge Sharon Gleason, however, said the state failed to follow its own rules for terminating the leases by not holding a public hearing to allow Exxon a chance to defend itself.

The judge's ruling means, "the legal process grinds on," said Kevin Banks, DNR director of oil and gas.

Gleason said both parties need to adviser her within 30 days how a special hearing on the issue should be handled.

Copyright 2010 by United Press International.