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FREELAND v. SUN OIL COMPANY

No. 17805.

277 F.2d 154 (1960)

Barton W. FREELAND et al., Appellants, v. SUN OIL COMPANY and Cities Service Oil Company; Sohio Petroleum Company, Intervenor, Appellees.

United States Court of Appeals Fifth Circuit.

Rehearing Denied April 21, 1960.

Attorney(s) appearing for the Case

Victor A. Sachse, Breazeale, Sachse, Wilson & Hebert, Baton Rouge, La., for plaintiffs-appellants.

Austin W. Lewis, Cullen R. Liskow, Lake Charles, La., for defendants-appellees and intervenor-defendant-appellee. Liskow & Lewis, Lake Charles, La., of counsel.

Before JONES, BROWN and WISDOM, Circuit Judges.

JOHN R. BROWN, Circuit Judge.

The basic question is whether a Louisiana mineral lessor's 1/8 gas royalty is to be based on 100% of the liquids extracted by an independent gasoline processing plant or on only that portion deliverable to the mineral interest owners after the processor has taken its share. Stated more simply, is the lessor to bear any part of the cost of processing? For if the basis is 100%, the result is that the lessor bears none of the costs. If the...

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