Alabama Pursues Exxon for Billions

Oil giant ExxonMobil has acknowledged that a court had reduced an $11.9 billion judgment against it in a royalty dispute to $3.5 billion, but pledged to pursue an appeal.

The company said the award in the so-called Mobile Bay royalties contract dispute in Alabama is "still excessive and unjustified," and that it would appeal the ruling by the Alabama Circuit Court.

The action was the latest development in a case in which the oil giant was accused of defrauding the state of Alabama on royalties from natural-gas wells in state waters.