Exxon Mobil Corporation and Affiliated Companies, f.k.a. Exxon Corporation and Affiliated Companies - Page 16




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          recovery from the Prudhoe Bay field of natural gas, if recovery             
          of such natural gas someday would become profitable.                        

          Terms of DL-1 Leases Relating to Exxon’s DRR Obligations                    
               The particular provisions of the DL-1 Leases (under which              
          Exxon and the other oil companies conducted oil exploration and             
          recovery activities in the Prudhoe Bay field) that apply to DRR             
          obligations of Exxon and of the other oil companies upon                    
          termination of oil production in the Prudhoe Bay oil field are              
          vague and general.                                                          
               The principal language of the DL-1 Leases that describes               
          what is to happen--upon termination of oil production at Prudhoe            
          Bay--to the extensive oil production equipment and facilities               
          located in the Prudhoe Bay field is found in paragraph 36, which            
          reads oddly and ambiguously in terms of “rights” and “privileges”           
          of the oil companies (not in terms of DRR “duties or                        
          obligations”) as follows:                                                   

                    RIGHTS ON TERMINATION.  Upon the expiration or earlier            
               termination of this lease as to all or any portion of said             
               lands, * * * [Exxon] shall have the privilege at any time              
               within a period of six months thereafter, or such extension            
               thereof as may be granted * * * [by Alaska], of removing               
               from said land or portion thereof all machinery, equipment,            
               tools, and materials other than improvements needed for                
               producing wells.  Any materials, tools, appliances,                    
               machinery, structures, and equipment subject to removal as             
               above provided which are allowed to remain on said land or             
               portion thereof shall become the property of * * * [Alaska]            
               upon expiration of such period; provided, that * * * [Exxon]           
               shall remove any and all of such properties when so directed           
               by * * * [Alaska].  Subject to the foregoing, * * * [Exxon]            





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