Interest on 1989 oil spill: $470 Million

ANCHORAGE, ALASKA - Oil giant Exxon Mobil Corporation says it will not appeal hundreds of millions of dollars in interest on punitive damages resulting from the 1989 Exxon Valdez oil spill.

Company spokesman Tony Cudmore says the Irving, Texas-based company will pay $470 million in interest on more than $507.5 million in punitive damages following the 11-million gallon spill of crude in Prince William Sound.  Cudmore said he couldn't elaborate on why Exxon Mobil decided to pay interest, except to say the company felt it should adhere to the appeals court decision. 

Plaintiffs' lawyer David Oesting in Anchorage says the company expects to make payment on the interest in the next few days. Exxon's decision was first reported today by the Anchorage Daily News.

The decision is a turnaround for the company.  Exxon Mobil since the mid-1990s has appealed court rulings on punitive damages.  Cudmore says the only remaining sum in dispute is $70 million in court fees.