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Exxon Chairman Lee Raymond said, "The FTC's decision, coupled with the European Commission's approval gained earlier, cleared the way for the merger to proceed. Exxon and Mobil moved quickly to close the transaction and to launch the world's premier petroleum and petrochemical company, which will be known as Exxon Mobil Corporation..."

FTC conditions ExxonMobil will satisfy to complete the merger include Exxon Mobil Corporation selling either Exxon's 48.8 percent interest in the Plantation pipeline or Mobil's 11.49 percent interest in the Colonial pipeline, and Mobil's 3.08 percent interest in the Trans-Alaska Pipeline System (TAPS).

Mobil Presents Results of Risk-based Budgeting for Patoka:

August 17, 1999

In a meeting with OPS, Mobil presented the results of its budgeting process using the risk-based project priorities developed for the Patoka facility. The highest priority risk-reducing projects were to conduct a Patoka area drainage hazard assessment, to install catchment berms to prevent off-site releases, and to inspect and repair the tanks with the highest calculated leakage risk. These projects were recommended for implementation in the Year 2000 budget.

Expedited implementation will not be recommended for projects involving cast iron valve replacements, replacement of “paper gaskets” with flexitallic gaskets, and installation of foam distribution systems on EFR tanks. These projects were assessed as providing relatively low risk-reducing benefits. Thus, funding and implementing them over time was considered the most effective use of available risk-reduction funds.

Also at this meeting, Mobil reported that it has distributed a survey to stakeholders in the area surrounding the Patoka facility. The purpose of the survey is to identify stakeholder concerns regarding facility operation and related risks.

Mobil Shareholders Approve Merger with Exxon:

May 27, 1999

Mobil Corporation announced at its annual shareholders' meeting in Dallas that Mobil shareholders had overwhelmingly approved the proposed Exxon-Mobil merger. Of the votes cast, 98.26 percent were voted in favor of the merger. Mobil announced earlier in May that it expects regulatory approval of the merger to be obtained in the third quarter of 1999.

OPS Observes Mobil Risk Screening and Prioritization of Risk Reduction Activities:

February-March, 1999

OPS has continued its close observation of Mobil's risk management process at the Patoka facility, attending a series of meetings in which the following steps in the process were carried out:

• The facility hazard analysis results and recent operating experience were used to develop risk scenarios, consisting of events with potential adverse consequences to the public, environment, workers, or business.

• Risks identified by the hazards analysis were screened to evaluate their importance.

• Risk control activities were defined to address all important risks.

• Risk control activities were prioritized according to their benefits in controlling risks and their cost effectiveness in achieving these benefits.

The activity risk and cost information will be submitted to the company budgeting process, with the intent that resources will be allocated to risk control activities with the highest priorities according to their risk reduction benefits and cost effectiveness. This provides the maximum risk reduction for the available budget.

Mobil and Exxon Announce Plans to Merge:

December  1, 1998

Mobil and Exxon announced that they have signed a definitive agreement to merge the two companies. As a result of the merger, Mobil shareholders will own about 30 percent of the company, while Exxon shareholders will own about 70 percent. Upon completion of the merger, the company's name will be Exxon Mobil Corporation, with headquarters in Irving, Texas. Current Exxon Chairman and CEO L. R. Raymond will be the Chairman, CEO, and President of Exxon Mobil Corporation. Current Mobil Chairman and CEO L. A. Noto will join the Exxon Mobil Board of Directors as Vice Chairman. Current Mobil President and COO E. A. Renna will join the Board as a Senior Vice President and Director. Four additional members of Mobil's Board will be invited to join the Exxon Mobil Board as non-employee Directors, bringing Board membership for the company to a total of 19 directors.

The company will be organized on a functional basis. Upstream functions will report to H. J. Longwell, Downstream to Mr. Renna and the Chemical business to R. Dahan. Worldwide downstream headquarters for the company will be located in Fairfax, Virginia. Worldwide upstream and chemical headquarters will be in Houston, Texas. Exxon Mobil will continue to use both the Exxon brand and the Mobil brand.

Mobil expects to provide details of the proposed merger to shareholders prior to the annual meeting in May.

The merger is subject to regulatory approval. OPS will closely monitor developments as the merger evolves to ensure the objectives of the risk management demonstration program continue to be maintained and promoted by Mobil’s participation.

Latest Project Developments:

November 1998

The Mobil Project team has the following recent accomplishments:

• Completion of risk decision model and supporting software package.
  
• Training of risk management demonstration project staff on use of model and software.

The Mobil team is currently carrying out the following activities:

• Development of a company intranet-based information system to document the Mobil risk management process from risk identification through resolution.
  
• Development of risk scenarios for hazards identified in the Patoka Hazards Assessment.
  
• Preparation of consequence models of tank failures at Patoka to assist in risk screening and project evaluation.
  
• Review of a list of stakeholders prepared for the project communications initiative.