NEW ORLEANS – Exxon Mobil says a Louisiana firm, U.S. Oil & Gas, assumed liability for a multimillion dollar property damage lawsuit it is facing when it purchased two oil and gas leases in 1988.
Exxon Mobil Corp. and Mobil Exploration and Producing North America Inc. filed a lawsuit Dec. 17 in U.S. District Court for the Eastern District of Louisiana against U.S. Oil & Gas Inc., citing declaratory relief.
According to the complaint, Exxon sold its right, title and interest in two leases dating back to 1949 to U.S. Oil & Gas in a 1988 transaction. The sale terms, the suit claims, required U.S. Oil & Gas to indemnify Exxon and hold it harmless from any claims involving the leases.
In the meantime, the suit says an approximately $25 million claim has been filed against Exxon seeking property damages for operations conducted under one of the leases. According to Exxon, it is the defendants responsibility to defend the case and pay any damages.
Exxon seeks damages of more than $75,000 in legal expenses it has paid to defend itself in the case. It is represented by attorneys James E. Lapeze and Jonathan J. Fox (New Orleans), Jamie D. Rhymes and Hunter A. Chauvin (Lafayette), and Michael P. Cash (Houston), all of the firm Liskow & Lewis.
U.S. District Court for the Eastern District Case number 2:15-cv-06895