SANCHEZ-O'BRIEN MINERALS CORP. v. STATE

No. 1 CA-CIV 7442.

149 Ariz. 258 (1986)

717 P.2d 937

SANCHEZ-O'BRIEN MINERALS CORPORATION, Plaintiff-Appellee, Cross Appellant, v. STATE of Arizona, Arizona State Land Department, the Honorable Joe T. Fallini, State Land Commissioner, Robert Lane, Deputy State Land Commissioner; and Blake-Berry-Blake Corporation, a Texas corporation, Defendants-Appellants, Cross Appellees.

Court of Appeals of Arizona, Division 1, Department D.

March 27, 1986.


Attorney(s) appearing for the Case

Evans, Kitchel & Jenckes, P.C. by Jerry L. Haggard, Amy R. Coy, James M. Belin, Phoenix, for plaintiff-appellee, cross appellant.

Robert K. Corbin, Atty. Gen. by Anthony B. Ching, Sol. Gen., Russell A. Kolsrud and Jon K. Wactor, Asst. Attys. Gen., Phoenix, for defendants-appellants, cross appellees, State of Ariz.

Fennemore, Craig, von Ammon, Udall & Powers by Calvin H. Udall, Nancy L. Rowen, Phoenix, for defendant-appellants, Blake-Berry-Blake.


OPINION

JACOBSON, Judge.

This appeal involves the propriety of the State Land Department's leasing of state land for oil and gas exploration.

The facts are not in material dispute. In 1978 and 1979, appellee, Sanchez-O'Brien Mineral Corporation (Sanchez-O'Brien), acquired by assignment the non-competitive oil and gas lease rights to approximately 57,000 acres of state land. The leases at the time of acquisition by Sanchez-O'Brien were to expire in...

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