A federal judge said Indonesian villagers can sue Exxon Mobil Corp. over allegations the Irving-based company contributed to human rights abuses by government security forces.

Judge Louis Oberdorfer in Washington ruled the suit by 11 villagers can proceed on state law claims against Exxon Mobil. He dismissed the villagers' claims under the federal Alien Tort Claims Act and the Torture Victim Protection Act.

The villagers sued in 2001, claiming Indonesia security forces funded by Exxon Mobil committed murder, torture and rape in the Aceh province where the company operates a government-owned oil and gas field and a pipeline. The State Department urged the judge to dismiss the suit in 2002, saying it would violate Indonesia's sovereignty and harm the war on terror.

Narrowing the suit to focus on state law "should alleviate the State Department's concerns," Oberdorfer said in his Oct. 14 order. The plaintiffs now must decide which state has the most applicable tort laws for the purposes of the suit, he said.

Exxon Mobil argued that the case should be dismissed under the constitutional principle that foreign affairs shouldn't be addressed by the courts. It said its conduct in Indonesia was ethical and in compliance with the nation's laws.

"We welcome the decision," Exxon Mobil spokeswoman Susan Reeves said. "The court has ruled that federal law provides no basis for the case against Exxon Mobil to proceed."

Background

International Labor Rights Fund, Washington DC ExxonMobil: the Company is Linked with Indonesian Military Killings, Torture and other Severe Abuse in Aceh, Indonesia

In the past decade alone, ExxonMobil has extracted some $40 billion from its operations in Aceh, Indonesia, leaving in its wake a legacy of death, destruction and environmental damage.

There have been credible reports dating back several years that Exxon Mobil Corporation, along with its predecessor companies, Mobil Oil Corporation and Mobil Oil Indonesia (collectively "Exxon Mobil"), hired military units of the Indonesian national army to provide "security" for their gas extraction and liquification project in Aceh, Indonesia. Members of these military units regularly have perpetrated ongoing and severe human rights abuses against local villagers, including murder, rape, torture, destruction of property and other acts of terror.

ExxonMobil apparently has taken no action to stop this violence, and instead, reportedly has continued to finance the military and to provide company equipment and facilities that have been used by the Indonesian military to perpetrate and literally cover up (in the form of mass graves) these criminal acts.

The International Labor Rights Fund has taken on the challenge of seeking justice for local victims of these abuses. On June 20, 2001, ILRF filed an ATCA claim in the Federal District Court for the District of Columbia, No. 01-1357 CIV, on behalf of 11

villagers from Aceh who were victims of human rights abuses by Exxon Mobil's security forces. The general theory of the case is that Exxon Mobil knowingly employed brutal military troops to protect its operations, and the company aided and abetted the human rights violations through financial and other material support to the security forces. In addition, the case alleges that the security forces are either employees or agents of Exxon Mobil, and thus Exxon Mobil is liable for their actions. Exxon Mobil filed a routine motion to dismiss ILRF's claim, and ILRF filed a response against this motion on December 14, 2001.

The court heard arguments in the case on April 9, 2002, and a decision was expected within 60 days.

Instead, the court has not yet ruled on the motion to dismiss, leaving the Acehnese victims of abuse in a state of legal limbo. Earlier in 2004, the presiding judge in the case asked for additional briefing on the impact on ILRF's case against ExxonMobil of the Supreme Court's decision in Sosa v. Alvarez-Machain, in which the Supreme Court upheld the use of the Alien Tort Claims Act in cases like ILRF's ExxonMobil suit.

ILRF filed its brief in the case in August 2004. The parties continue to await the court's decision on the motion to dismiss. Like Unocal, Exxon Mobil's primary defense appears to be that the human rights violations may very well be occurring, but the company did not specifically intend this result, and therefore cannot be held liable.

ExxonMobil Annual Meeting of Shareholders - Wednesday, May 25, 2005

Statement by Munawar Zainal, Secretary General, Acheh Center-USA

Good morning, ladies and gentlemen,

My name is Munawar Zainal, and I am Secretary General of the Acheh Center USA. I have lived here in the United States for the past three years, ever since I was forced to flee my homeland of Acheh because of my activities as an advocate for human rights.

I think most of you now know something about Acheh – not only because ExxonMobil exploits massive natural gas operations there, but also because of the massive tsunami that devastated my homeland last December. I am here today to speak in favor of New York City's resolution because I feel that it is so important for you all to understand that there are two disasters right now in Acheh. One of these is the natural disaster of the tsunami. This has received much publicity. But there is another, less-publicized man-made disaster that also has cost thousands of innocent lives. This is the brutal occupation of Acheh by the Indonesian military and the rampant violations of human dignity and human rights committed with impunity by those armed forces. The Indonesian military has, for years, committed serious, systematic and widespread abuses of human rights in the area of ExxonMobil's operations and other parts of Acheh which are well documented by the US State Department and other sources.

Indeed, a crucial turning point in Acheh's situation occurred in early 2001, when ExxonMobil suspended its operations citing security concerns. Though the company's facilities were completely unharmed, the Indonesian military used ExxonMobil's public statement of fear as an opening to pressure Indonesia's civilian government to instate martial law throughout Acheh.

This led to a massive military build-up and occupation that destroyed the fragile peace process between Achehnese and the Indonesian government and that has resulted in thousands of Achehense civilians being killed, tortured, involuntarily disappeared, arbitrarily arrested and detained by Indonesian forces.

I want to believe that a potential silver lining in the tsunami tragedy is that the eyes of the world are now focused on Acheh, offering an opportunity for successful peace negotiations there and for an end to the horrific human rights crimes that plague my Achehnese sisters and brothers.

I strongly believe that ExxonMobil can influence the prospects for peace and stability in my homeland. This will require a change in policy and action by the company's management, which you, as shareholders, can encourage. Right now, Exxon Mobil's ongoing financial and logistical collusion with the Indonesian armed forces provides those troops with opportunity and cover for their brutality.

The most recent reports I've received from Acheh suggest that as long as ExxonMobil continues to remain silent and make payments to the wholly unaccountable armed forces of Indonesia, human rights abuses will continue. You, as concerned shareholders, can take immediate steps today to safeguard your investments and to end the massive man-made devastation in Acheh by calling on ExxonMobil management to research and report to you about the current nature and extent of the company's support for military operations in Acheh.

Please help to end the terrible violence in Acheh. I urge all of you who are shareholders to vote bPension Funds' resolution.

Thank you.