Oregon Department of Justice

Attorney General Hardy Myers today joined Alaska, California and Washington in filing a consent decree concerning the proposed merger of Exxon and Mobil. The decree, filed in Alaska federal court, requires Exxon to sell Mobil's three percent interest in the Trans-Alaska Pipeline System (TAPS) once the merger is approved. Preliminary approval of the merger by the Federal Trade Commission was announced today.

"More than 75 percent of the gasoline consumed by Oregonians is produced by refiners in Washington that are heavily dependent on Alaska North Slope (ANS) crude oil being pumped through TAPS," Myers said. "Maintaining competition for the exploration, production and transportation of ANS crude oil is essential to keeping the price of gasoline from rising even higher in Oregon."

Mobil's interest in the pipeline, including storage tank capacity at Valdez, must be sold by August or a trustee will be appointed to oversee the divestiture. The trustee can substitute and sell Exxon's 20 percent interest in the pipeline within a 12-month timeline. Exxon is prohibited for the next ten years from reacquiring the Mobil interest in TAPS.

Myers' office joined the FTC and other states in investigating possible violations of the federal and state antitrust laws after Exxon announced its intention to buy Mobil for $73.7 billion.

The agreement requires Exxon to reimburse Oregon approximately $17,000 in legal fees and costs.