press release

Chevron Press Release - Chevron Asks U.S. Supreme Court To Hear Cities Service Case

SAN FRANCISCO, Sept. 21, 1999 -- Chevron today announced it has filed a petition asking the U.S. Supreme Court to hear the Cities Service breach-of-contract case.

"There were grievous errors in the Oklahoma proceedings and we believe this petition is based on strong arguments worthy of U.S Supreme Court consideration," said Ken Derr, Chevron Corp. chairman and chief executive officer.

In its filing, Chevron contends that the trial judge improperly precluded Chevron from proving its main defense, and that the court proceedings in Oklahoma failed to ensure due process.

On March 2, the Oklahoma Supreme Court upheld the Oklahoma trial court's damage award of $742 million from the alleged breach of contract.

The case dates back to 1982 when Cities Service Co., a Tulsa oil company, filed suit against Gulf Oil Corp. after Gulf terminated an agreement to merge with Cities, which was trying to avoid a hostile takeover by Mesa Petroleum. Cities Service was subsequently acquired by Occidental Petroleum in 1982 and Gulf was acquired by Chevron in 1984.

Updated: September 1999