press release

Chevron Press Release - Chevron To Challenge Oklahoma Supreme Court Opinion

SAN FRANCISCO, March 3, 1999 -- Chevron Corp. today issued a statement saying it was "shocked and dismayed" at the opinion of the Oklahoma Supreme Court upholding a 1996 verdict in a breach-of contract lawsuit against its subsidiary, Chevron U.S.A. Inc.

"We have just received the decision and will seek further review in the courts," said Ken Derr, chairman and chief executive officer of Chevron Corp., the parent company of Chevron U.S.A. Inc.

"There were numerous errors in the trial proceedings, and those errors resulted in a miscarriage of justice," said Derr. "That's why we find the Oklahoma Supreme Court ruling so shocking."

Chevron said the Tulsa jury was prevented from hearing critical evidence that would have exonerated Gulf Oil Corp. and, by extension, Chevron, which acquired Gulf in 1984. Chevron also said that the District Court judge took critical issues out of the jury's hands, including the amount of compensatory damages to award the plaintiff.

The case reaches back to 1982 when Cities Service Co., a Tulsa oil company, filed suit against Gulf Oil Corp., when Gulf terminated plans to acquire Cities Service. In the years since the suit was filed, both companies were acquired by other energy firms: Cities Service by Occidental Petroleum. The lawsuit remained in the names of the original parties.

Updated: March 1999