Rather than proactively identifying sensitive materials, Exxon seems inclined to request closures ad hoc, according to the government’s filing.
Exxon Docs In $1.8B Case Should Be Unsealed : Concerns Over Exxon’s Strategy
The government expressed concern over Exxon’s apparent readiness to interrupt proceedings to seek courtroom closures, raising questions about its commitment to transparency.
Exxon is yet to articulate reasons for sealing records, which include contract terms, economic models, and tax information, all central to its case.
Disputed Tax Deduction
Exxon’s lawsuit, revised in July, seeks $1.8 billion in damages related to refund claims for taxes, penalties, and interest for 2010 and 2011. At the heart of the dispute is a deduction denied by the IRS, pertaining to interest on production payments made to Qatar under a revised partnership agreement.
While Exxon contends it’s entitled to the deduction under IRS Code Section 636(a), the government argues the payments constitute lease royalties, not deductible interest.
Response and Legal Representation
Exxon representatives and the government declined immediate comments. Legal representation for Exxon includes attorneys from Davis Polk & Wardwell LLP and Holland & Knight LLP. The government is represented by attorneys from the U.S. Department of Justice, Tax Division.
