The United States Supreme Court has denied the Petition for Certiorari filed by the United States Department of the Interior in Kerr-McGee Oil & Gas Corp. v. U.S. Dep’t of the Interior, 554 F.3d 1082 (5th Cir. 2009). The high court’s refusal to consider Interior’s appeal allows the Fifth Circuit’s January 2009 decision to
Royalty
Fifth Circuit Reverses, Allows Texas to Intervene in Cy Pres
By Marie Carlisle
On May 28, 2009, the Fifth Circuit decided In the Matter of: Lease Oil Antitrust Litigation, case no. 08-40230, reversing the District Court’s denial of the State of Texas’ motion to intervene in a matter concerning unclaimed settlement money from the oil antitrust action. The Fifth Circuit found that Texas met the…
Maxwell v. Kerr-McGee: Tenth Circuit Upholds Right Of MMS Auditor To Bring Qui Tam Action
By Jonathan Hunter:
In a highly anticipated decision, the Tenth Circuit held this week that the district court had subject matter jurisdiction over a qui tam action filed by an MMS auditor concerning royalty payments on crude oil produced from offshore federal leases. The district court had dismissed the case on the grounds that the…
Texas Supreme Court Again Addresses Royalty Class Actions
In Bowden v. Phillips Petroleum Co., No. 03-0824 (Feb. 15, 2008), the Texas Supreme Court again addressed the propriety of class actions for gas royalty claims. The class affirmed the denial of two subclasses, but reversed the denial of a third subclass of royalty claimaints. The Court followed its prior holding in Yzaguirre in…
Court Addresses Sufficiency of Demand Letter Under Mineral Code Articles 212.21-23
In CLK Company, L.L.C. v. CXY Energy, Inc., No. 07-834, 2007 WL 4409686 (La. App. 3d Cir. 12/19/07), the court addressed the payment of royalties and penalties under Mineral Code article 212.23(c) and concluded that plaintiff’s letters were insufficient to trigger the provisions of that article. In CLK Company, the parties entered …
Res Judicata Bars Relitigation of 1938 Buras Levee District Lease’s Validity
On November 21, 2007, the Louisiana Fourth Circuit Court of Appeal affirmed the trial court’s ruling in favor of Chevron U.S.A., Inc. (“Chevron”), the Plaquemines Parish Government (“PPG”), and others in a dispute with the State of Louisiana over the validity of a 1938 mineral lease granted by the Buras Levee District (“BLD”). The State…
Louisiana Extends Abandonment Period For Litigation Affected by Katrina or Rita
By Joe Giarrusso:
In Louisiana, a lawsuit is generally deemed abandoned when the parties fail to take any step in its prosecution for three years. This rule is operative without any formal order. La. Code Civ. P. art 561. However, Act 361 of 2007 extended the period for abandonment to five years where (1) the…
Jury Finds Oil Royalties Underpaid in False Claims Act Case
The Associated Press reported today that a federal jury found Kerr McGee liable for additional royalties on crude oil produced from federal properties and sold through Texon. The case is noteworthy in that it was brought as a False Claims Act case by Bobby Maxwell, an auditor with the Mineral Management Service, who alleged that…