Item 3. Legal
Proceedings

On
December 8, 2016, the Texas Commission on Environmental Quality (TCEQ)
contacted the Corporation concerning alleged violations of the Texas Clean Air
Act, certain implementing regulations, and the applicable new source review
permit in connection with exceedances of the nitrogen oxide emission limit at a
compressor engine and volatile organic compound emission limits at Tanks 21 and
23 at the Corporation's former King Ranch Gas Plant. The TCEQ is seeking a
civil penalty in excess of $100,000, and the Corporation is working with the
TCEQ to resolve the matter.

As
reported in the Corporation's Form 10-Q for the second and third quarters of
2014, on May 20, 2014, the TCEQ issued a Notice of Enforcement and Proposed
Agreed Order (the Agreed Order) alleging that record reviews and inspections at
ExxonMobil Oil Corporation's (EMOC) Beaumont, Texas, refinery in 2013 and 2014,
identified deficiencies in the refinery's cooling tower monitoring activities
and one air emission event, which allegedly violated provisions of the Texas
Health and Safety Code, the Texas Water Code, and the Code of Federal
Regulations. Additionally, the TCEQ identified deficiencies in a refinery
continuous emissions monitoring system relative accuracy test audit procedure.
On November 8, 2016, the TCEQ formally approved and signed the Agreed Order.
EMOC previously paid the agreed $100,430 fine to the TCEQ, and on November 28,
2016, EMOC made a $100,429 payment for the benefit of the Southeast Texas
Regional Planning Commission for the Meteorological and Air Monitoring Network
Project, thereby satisfying all remaining financial obligations under the
Agreed Order and concluding this matter.

Refer to the relevant portions of "Note 16: Litigation
and Other Contingencies" of the Financial Section of this report for additional
information on legal proceedings.

Item 4. MINE SAFETY DISCLOSURES