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Alabama Judge Sides with Exxon Mobil in State Royalty Dispute

Montgomery – A Montgomery judge has sided with Exxon Mobil over how much it must pay the state to end a long legal battle over natural gas royalties due the state.

At a hearing Tuesday, Circuit Judge Tracy McCooey said Exxon Mobil's calculation of $120.4 million in royalties and interest was correct. State attorneys had argued for $142.8 million.

State attorney Robert Cunningham said the state government will appeal the judge's ruling to the Alabama Supreme Court.

In November, the Alabama Supreme Court threw out most of a $3.6 billion judgment the state had won in a natural gas royalty dispute with the oil company. The court left %51.9 million in compensatory damages, but that was based on 2003 numbers. The Supreme Court sent the case back to McCooey to update those numbers to present time.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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