Exxon leases rejected by Alaskan judge

JUNEAU, Alaska, Dec. 28 (UPI) -- A judge in Alaska ruled against the Point Thomson development plan.

Superior Court Judge Sharon Gleason ruled that the Alaska Department of Natural Resources acted properly when it rejected the 22nd Plan of Development for the Point Thomson Unit. In the plan, Exxon would develop natural gas in an area of the North Slope fields with large gas resources, according to a DNR release.

Exxon is being given a chance to testify, but some analysts say it looks like it may lose its land leases in that area of Alaska.

"This ruling represents another significant step forward in the state's efforts to develop the valuable oil and gas resources in the Point Thomson reservoir and to hold the lessees to the commitments they made in the unit agreement," Gov. Sarah Palin said. "We are pleased that the court has affirmed the Department's efforts to ensure that the oil and gas in this reservoir is responsibly produced."

At the remand hearing, DNR will consider arguments about whether termination of the unit is the appropriate remedy for failure to adequately develop the reservoir.