Exxon Mobil Sues Alaska for $800 Million

Oil companies say Alaska should pay $800 million in damages, claiming the state breached a deal when it revoked gas and oil leases on a North Slope oil field.

Exxon Mobil Corp. filed the claim with the Alaska Department of Natural Resources on behalf of itself and lease partners on Monday over the revocation of Point Thomson oil and gas leases.

Separately, the company filed a request for reconsideration of a gas field development plan it submitted but was rejected by Resources Commissioner Tom Irwin last month. Exxon's filing were first reported Monday by Anchorage television station KTVA.

The state had revoked the leases, claiming the companies were not trying to develop the fields. Irwin did not immediately return a message left Monday evening on his cell phone.

Point Thomson holds nearly one-fourth of the 35 trillion cubic feet of natural gas reserves the state and the industry hope to one day ship in a gas line to Midwestern markets.