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    Chevron Awarded Fuel Patents

    Company to offer royalty-free, low-emission gasolines.

    SAN FRANCISCO -- Chevron U.S.A. Inc., a subsidiary of ChevronTexaco Corp., has received patents on low-emission gasolines containing ethanol and on methods for blending those gasolines. These patents, issued as part of a series of patent applications filed by Chevron U.S.A. Inc., are directed to various reformulated gasoline (RFG) blends and methods of blending.

    "Chevron intends to use its RFG patents defensively to preserve its freedom to practice refining technology and to produce and market RFG," said Dave Reeves, president of Chevron North America Products Co., a refining and marketing division of Chevron U.S.A. Inc. "Many federal and state regulatory officials, as well as members of the refining industry, are aware of the company's intentions for the filing and use of these patents."

    Unlike Unocal Corp., which in 2000 received patents for an RFG blend and charges other oil companies to use that patent, Chevron intends to enter into royalty-free cross licensing arrangements with any interested company.

    "Cross licensing agreements will help to insure that the industry can produce RFG and compete in refining and marketing of RFG without engaging in expensive patent disputes and litigation," Reeves said. "We believe that this approach will enable both the industry and RFG consumers to benefit from our patenting efforts. If other companies choose not to enter into a formal cross licensing agreement with Chevron, we do not intend to enforce, or to collect licensing fees, on patents relating to RFG unless that company first attempts to enforce its patents against Chevron.

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