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This file is XML Formatted alert log. This is new in 11g.
In order to clear space you can just move log_<somenumber>.xml the file to another location where there is space.
I found this solution:
I run a cron job periodically to purge these files that are a couple of days old using the ORACLE O/S user and command:
$ORACLE_HOME/bin/adrci exec=”set homepath diag/rdbms//;purge -age 1440″
seemed to work, so I set it up as a cron job.