GENERAL CRUDE OIL CO. v. DEPARTMENT OF ENERGY

No. 5-29.

585 F.2d 508 (1978)

GENERAL CRUDE OIL COMPANY, Plaintiff-Appellee, v. DEPARTMENT OF ENERGY, Defendant-Appellant, and The United States of America, Counterclaimant-Appellant.

Temporary Emergency Court of Appeals.

Decided October 12, 1978.

Rehearing Denied November 9, 1978.


Attorney(s) appearing for the Case

Arthur E. Gowran, with whom Robert G. Heiss, Dept. of Energy, Washington, D. C., and Dina R. Lassow, Washington, D. C., with whom Dennis G. Linder and Barbara Allen Babcock, Asst. Atty. Gen., Dept. of Justice, Washington, D. C., on brief for defendant-appellant.

James V. Carroll, III, with whom Edith H. Jones, Andrews, Kurth, Campbell & Jones, Houston, Tex., on brief, for plaintiff-appellee.

Hugh Steven Wilson, William A. Long and John S. Chang, Latham, Watkins & Hills, Washington, D. C., on brief, for Sunland Refining Corporation, amicus curiae.

Before ESTES, JOHNSON and GEWIN, Judges.


ESTES, Judge.

General Crude Oil Company (General Crude) is the owner of a 50% working interest in the Banning Lease in the West Newport Field, in Newport Beach, California, which it purchased in 1966 from G. E. Kadane and Sons (Kadane). Kadane remains a 50% working interest owner, while General Crude has been the operator of the lease since 1966. Production on the lease by Kadane began in 1948; however, due to a rapid decline in production and low estimates of ultimate...

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