Texas High Court Snubs Shell, Amoco Arbitration Appeal

Law360, New York (May 11, 2012, 7:34 PM EDT) -- The Texas Supreme Court declined Friday to hear BP Amoco PLC and Shell Oil Co. affiliates' petition to reinstate an arbitration award against Occidental Petroleum Corp. over environmental liabilities from a $3.75 billion oil-and-gas rights sale after lower courts ruled an arbitrator was improperly conflicted.

Occidental bought an Amoco-Shell partnership called Altura Energy Ltd. and its oil-and-gas holdings in the Permian Basin in 2000 and in 2006 initiated arbitration in a dispute about how the agreement apportioned certain environmental liabilities.

An arbitration panel ruled 2-1 for...
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