Manhattan, after an 11 week trial, found Exxon Mobil liable fora $105 million in damages for contaminating part of the New YorkCity well water supply.

The panel found the oil company had caused contamination withthe gasoline additive methyl tertiary butyl ether or MTBE in sixdrinking water wells in the borough of Queens and awarded costs forremoving MTBE from those locations.

An Exxon-Mobil spokesman Kevin Allexon said the company wouldnot discuss detail of its insurance coverage.

He e-mailed a statement saying the company is "disappointed withthis decision and will be considering all our legal options. Aswe've maintained throughout, our service stations were not thesource of the MTBE contamination at the Station 6 wells and thecity's own principal expert identified three non-ExxonMobilsources. We do not believe we should be required to compensate theCity of New York for someone else's contamination."

New York City Law Department's Corporation Counsel's office saidthe jury found Exxon liable for product liability for failure towarn people about the dangerous nature of its product as well astrespass, public nuisance, and negligence.

The law department in a statement noted that several of thenation's largest oil companies--including Shell, BP, Chevron,Citgo, Hess, and Sunoco--previously settled claims against them fora total of $15 million.

The City presented evidence that Exxon Mobil added MTBE togasoline knowing that it would contaminate groundwater when thegasoline leaked and knowing that underground storage tanks at gasstations, many of which are owned by Exxon Mobil, regularlyleak.

New York also contended that Exxon Mobil ignored warnings fromits own scientists and engineers not to use MTBE in areas of thecountry, like Queens, that use groundwater for drinking water.

Lawyers for the city argued that Exxon Mobil failed to informgovernment agencies, gasoline station owners, water suppliers, andthe public about the dangers from MTBE,

New York State banned MTBE as of 2004, after MTBE pollutedgroundwater drinking water supplies throughout the State.

Approximately 20 other states have also banned MTBE.

The City's drinking water supply system includes 68 wells insoutheast Queens.