Exxon Mobil Corporation and Affiliated Companies, f.k.a. Exxon Corporation and Affiliated Companies - Page 25




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                    agreement must specify the work to be performed or                
                    the conditions to be met.                                         

               For the years in issue, Exxon, like most other oil and gas             
          companies, did not recognize on its financial balance sheet                 
          statements estimated future DRR costs as a fixed liability.                 
          Rather, Exxon disclosed estimated future DRR costs in a note to             
          its financial statements and, as required by FAS 19, reflected              
          and claimed estimated future DRR costs relating to Prudhoe Bay              
          and to its other oil and gas facilities in its annual                       
          depreciation calculations on its financial income statements.               
               As indicated, during the years in issue, no PBU partnership-           
          wide study was made of estimated future Prudhoe Bay DRR costs.              
          Rather, each oil company, including Exxon, with a working                   
          interest in the PBU partnership generally developed its own                 
          estimate of future Prudhoe Bay DRR costs.                                   
               Set forth in the schedule below for 1977 through 1988 are              
          the amounts of its share of total future Prudhoe Bay DRR costs              
          that, at the end of each year, were estimated by Exxon.  The                
          amounts vary because of differences in methodology and                      
          assumptions that were used from year to year to estimate total              
          future DRR costs.                                                           











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Last modified: May 25, 2011