HOUSTON, Oct. 12 /PRNewswire-FirstCall/ -- Frontier Oil Corporation
(NYSE: FTO) today announced that it has reached agreement in principle on
the terms of a settlement with the attorneys for the plaintiffs in the
Beverly Hills lawsuits. Under the terms of the settlement, the plaintiffs
will receive $10.0 million from Frontier Oil Corporation and its
subsidiaries ("Frontier") and its insurance provider. Frontier's share of
the cost is approximately $6.2 million, which will be funded from the
Company's commutation account with the insurance provider. The Beverly
Hills lawsuits and the terms of the insurance policy are more fully
described in the Company's 10-Q report for the quarter ended June 30, 2007.
The insurance will remain in place and available to provide coverage for
potential additional claims and indemnity claims.
Jim Gibbs, Chairman, President and CEO of the Company stated: "We are
pleased to be able to put this litigation behind us. The proposed
settlement will remove uncertainty inherent in this litigation, minimize
future legal costs, and allow us to focus on the business of the Company."
Once a settlement agreement is finalized between the plaintiffs and
Frontier, including releases by the plaintiffs, the settlement will be
subject to approval by the Los Angeles Superior Court where the Beverly
Hills lawsuits have been consolidated. Following court approval, the
settlement should resolve all of the litigation against Frontier currently
pending in the Los Angeles Superior Court or on appeal to the California
Court of Appeals.
Frontier operates a 110,000 barrel-per-day refinery located in El
Dorado, Kansas, and a 52,000 barrel-per-day refinery located in Cheyenne,
Wyoming, and markets its refined products principally along the eastern
slope of the Rocky Mountains and in other neighboring plains states.
Information about the Company may be found on its web site
http://www.frontieroil.com.
This press release includes "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements are those
concerning strategic plans, expectations and objectives for future
operations. All statements, other than statements of historical fact,
included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or may
occur in the future are forward-looking statements. These statements are
based on certain assumptions made by the Company based on its experience
and perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of the
Company. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking
statements.
SOURCE Frontier Oil Corporation
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Related links:
http://www.frontieroil.com
CONTACT:
Doug Aron of Frontier Oil Corporation,
+1-713-688-9600, ext.145
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