JUNEAU, Alaska, Jan. 13 (UPI) -- An Alaskan court ruled the state wrongly terminated the leases for Exxon Mobil and its partners to develop the Point Thomson gas fields in the North Slope.
Alaskan State Superior Court Judge Sharon Gleason ruled the state did not move forward with hearings on Exxon Mobil's claims to Point Thomson correctly, saying Alaska denied the company its due process, the Anchorage Daily News reports.
Alaska in 2005 canceled an Exxon Mobil license to drill for gas at Point Thomson, saying the company failed to develop the area. The company in turn sought court action, complaining the region is key to Alaska's plans to build a gas pipeline to the Lower 48 states.
Exxon Mobil signed agreements with Alaska in 1977 to explore Point Thomson, though the field sat idle for decades to the ire of state lawmakers.
Exxon Mobil said it believes the region to be one of the most lucrative natural resource fields in Alaska, adding it plans to start production in 2014.
David Eglinton, a spokesman for the company, said he was "encouraged" by the ruling. Alaska says it is studying the decision to assess its legal options.
