Exxon ordered to pay $6.75bn over oil spill

A FEDERAL judge has ordered Exxon Mobil to pay about $6.75 billion to thousands of Alaskans affected by the 1989 Exxon Valdez oil spill.

The ruling is the latest of several damage awards in the case over the past decade the result of successful appeals in federal court by Exxon. The company plans to appeal again.

Wednesday's ruling by US District Judge Russel Holland ordered the Irving, Texas-based company to pay $4.5bn in punitive damages and an estimated $2.25bn in interest.

The money is to go to 32,000 fishermen, Alaska Natives, landowners, small businesses and cities affected by the 11 million gallon-spill in Prince William Sound.

The judge had been ordered by the 9th US Circuit Court of Appeals to reconsider the damages awarded in an earlier ruling in light of a Supreme Court decision last year concerning punitive damages.

"This ruling flies in the face of the guidelines set by the appeals court," Exxon spokesman Tom Cirigliano said.

Judge Holland reduced the Exxon punitive damages award to $4bn a year ago after a three-judge panel of the 9th Circuit sent the original $5bn verdict back, saying it was excessive.

Governor Frank Murkowski said while the decision "moves the process on", Exxon's plans to appeal signify there's no end in sight to the legal dispute.

"It would be helpful if the two parties would consider discussing a settlement, so that any award that might come from the lawsuit could have application during the lifetime of the thousands of plaintiffs," he said.