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Exxon then appealed to the Supreme Court, which agreed to hear the case.

In a decision issued June 25, 2008, Justice David Souter issued the judgment of the court, vacating the $2.5 billion award and remanding the case back to the lower court, finding that the damages were excessive with respect to maritime common law.

The oil, originally extracted at the Prudhoe Bay oil field, eventually covered 1,300 miles (2,100 km) of coastline, Captain Joseph Hazelwood, who was widely reported to have been drinking heavily that night, was not at the controls when the ship struck the reef.

However, as the senior officer, he was in command of the ship even though he was asleep in his bunk.

Mechanical cleanup was started shortly afterwards using booms and skimmers, but the skimmers were not readily available during the first 24 hours following the spill, and thick oil and kelp tended to clog the equipment.