Estate of Algerine Allen Smith, Deceased, James Allen Smith, Executor - Page 8

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          amounts which it had paid to the Treasury as a result of the DOE            
          litigation.                                                                 
               Decedent, individually and as the executrix of the estate of           
          Jessamine Allen, and Frankie were parties to the suit.  The                 
          Jarvis Christian defendants vigorously contested Exxon's claims.            
          On July 22, 1988, the Jarvis Christian defendants filed a motion            
          for judgment for lack of Federal statutory or common law claims,            
          asserting that neither Federal statutory law nor common law                 
          authorized any of Exxon's claims against them.                              
               On November 7, 1989, the District Court issued an order                
          granting an oral motion for reverse bifurcation.  The District              
          Court ordered that the trial on the damages issue in the case               
          would precede trial on the liability issue.  By order dated                 
          December 5, 1989, the District Court directed the parties to file           
          any motions for summary judgment with respect to the issue of               
          whether Exxon had suffered any damages.  Pursuant to this order,            
          on January 16, 1990, the royalty and working interest owners                
          filed a joint motion for summary judgment and memorandum in                 
          support of their motion against Exxon.  In their accompanying               
          memorandum, the interest owners denied that any amounts were owed           
          to Exxon, regardless of whether any liability under law could               
          attach to them, because Exxon had not, in fact, suffered any loss           
          in paying the approximately $2.1 billion judgment.6                         

               6The Allen parties expressly adopted the joint motion for              
                                                             (continued...)           




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