Estate of Algerine Allen Smith, Deceased, James Allen Smith, Executor - Page 9

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               Decedent died on November 16, 1990.                                    
               On February 15, 1991, the District Court issued an order               
          determining in part that the royalty interest owners were liable            
          to Exxon under Federal common law for restitution of overcharges            
          received by them on account of the misclassified oil.  Despite              
          its previous order bifurcating the issues, the District Court               
          rendered summary judgment on both the liability and damages                 
          issues.  The District Court then referred the calculation of                
          damages to a special master.                                                
               In April 1991, Michael Riddle, decedent's attorney for                 
          estate tax purposes, and James Knowles, her attorney in the                 
          Jarvis Christian litigation, attended a meeting with                        
          representatives of Exxon in Houston, Texas, at which Exxon                  
          presented its calculation of the amounts owed by the Allen                  
          parties.  Exxon claimed a total of $2,482,719 from decedent's               
          estate, which included interest.7  Exxon had sought prejudgment             
          interest beginning in February 1975 and postjudgment interest               
          beginning in June 1983 with respect to the amounts it had paid to           
          the Treasury in Exxon I.  However, in its February 15, 1991,                
          order, the District Court in the Jarvis Christian litigation                
          determined that Exxon was only entitled to prejudgment interest             

               6(...continued)                                                        
          summary judgment filed on Jan. 16, 1990.                                    
               7The amount claimed by Exxon included amounts sought from              
          Jessamine's and Frankie's interests, which the decedent had                 
          inherited.                                                                  




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