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Name and title: Charles A. James, vice president and general counsel Age: 52 Company profile: Chevron Corp.-formerly ChevronTexaco-ranks No. 4 on the Fortune 500 and is the second-largest U.S. integrated oil company, trailing only Exxon Mobil Corp. In 2005, Chevron’s sales reached $198 billion, up 27.6% from the prior year. Net earnings topped $14 billion, up 5.8% from 2004. Chevron has extensive holdings in chemicals and power production, but its core assets are proved reserves of 13 billion barrels and the daily production of nearly 3 million barrels of oil. Chevron owns all or part of 26,500 gas stations operating under the Chevron, Texaco and Caltex brands. The company acquired Texaco in 2001 and Unocal in 2005. Unocal added about 15% to Chevron’s proved reserves. Operations in Southeast Asia are convenient for the booming markets of China and India; the U.S. market is supplied from the Gulf of Mexico; and Europe receives Chevron product from the Caspian Sea. Route to present position: James graduated from Wesleyan University in 1976 and took his law degree in 1979 from George Washington University Law School. He began his law career immediately after graduation at the Federal Trade Commission, where he rose to assistant to the director of the FTC’s Bureau of Competition. He left the FTC in 1985 to head the antitrust and trade regulation practice at Jones Day in Washington. James joined the first Bush administration in 1989 as deputy assistant attorney general in the Antitrust Division. He returned to Jones Day in 1992, but left the firm again in 2001 when he was confirmed by the Senate as assistant attorney general in charge of the Antitrust Division at the Department of Justice. He left the department, and Washington, in December 2002 to take the job of general counsel at Chevron’s headquarters in San Ramon, Calif. Legal team: James oversees 350 lawyers, divided roughly between the United States and Chevron’s far-flung oversees operations. “Our core competency as a law department is in the contracting business that is associated with operations around the world,” he said. “An oil company is really a giant construction company. Our lawyers will do the contracting necessary in 2006 to execute a $14 billion capital and exploration program.” Trickier by far is negotiating contracts with foreign governments. “In almost every place we operate we are either a concessionaire, a leaseholder or have some other relationship, almost always with a government partner,” James said. “They are the people who make the laws that define your contractual rights and enforce them in their court system. It’s their oil. We have to show the government there is something we can bring to the table, be it technology or know-how or access to infrastructure, that makes it to their advantage to produce the oil through us rather than their national petroleum company.” All environmental compliance work is done in-house. The legal department includes a major intellectual property section. “Most people do not think of the oil industry as a high tech business,” James said. “Those people have never tried to extract high-temperature oil out of 7,000 feet of water where the drill has to go down another 12,000 feet to find the pay.” Outside counsel: “Our business involves a staggering amount of litigation,” James said. Outside firms handle all litigation; Chevron holds the reins with a proprietary litigation-management system. Chevron uses 350 law firms worldwide, but the bulk of the $100 million it spends annually on outside counsel goes to five firms. Pillsbury Winthrop Shaw Pittman handles corporate governance work. The principal firms for litigation are Jones Day and Atlanta’s King & Spalding. Labor and environmental litigation is assigned to Latham & Watkins. Herbert Smith of London handles international transactions. Daily duties: “My day is a constant parade of meetings,” James said. He has daily discussions with the four senior Chevron executives who report to him-the vice president and general counsel for “upstream” business, meaning exploration and production; the vice president and general counsel for global “downstream” operations, meaning refining and distribution; the chief corporation counsel, who serves as general counsel for many small, affiliated businesses; and the corporate secretary, who serves as chief governance officer. James reports to Chairman and Chief Executive Officer David J. O’Reilly. James described his work as almost evenly divided between serving as chief legal strategist on large transactions and major litigation, and his duties as a member of the executive committee that makes all strategic decisions for Chevron. “I spend about 50% of my day on legal strategy, maybe 10% on governance and the rest being an executive,” he said. Major deals: James oversaw the 2005 acquisition of Unocal for $16.4 billion in which Chevron fended off a hostile, higher but less certain bid by the Chinese national oil company. “It was quite an enterprise to keep our legal transaction on the rocket sled,” James said. “Unocal chose the certainty of our deal versus the prospect of theirs. I think we set the land speed record, because we took this transaction from the day of announcing to closing in four months.” In 2005, the U.S. Supreme Court ruled unanimously in favor of Chevron in Texaco Inc. v. Dagher, overturning a ruling by the 9th U.S. Circuit Court of Appeals that a joint venture by Texaco and Shell amounted to price-fixing. Personal: James is unmarried. His daughter, Kathryn, 20, is a film major at the University of Southern California. He describes his hobby as “wheeled objects that go fast. I love fast cars and I love motorcycles.” Last book and movie: Moneyball: The Art of Winning an Unfair Game, by Michael Lewis, and The Devil’s Advocate.

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