JUNEAU (AP) -- The state Supreme Court has refused a request by Exxon to deduct $24 million from oil royalties paid to the state from the Point McIntyre fields.
The court ruling settled a contract dispute between the oil producer and the state Department of Natural Resources over the third largest oil field in the United States.
An oil reservoir was discovered there in 1988. It was estimated to be worth $4.78 billion according to court records.
Exxon had attempted to extract oil in the area under an earlier agreement with the state and other producers which would allow the company to deduct its processing costs from royalties.
The state High Court ruled the Department of Natural Resources was within its power to refuse to do that and require a new agreement for the find.
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