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UNION OIL CO. OF CAL. v. STATE

No. 2650.

574 P.2d 1266 (1978)

UNION OIL COMPANY OF CALIFORNIA and Marathon Oil Company, Appellants, v. STATE of Alaska, DEPARTMENT OF NATURAL RESOURCES, Appellees.

Supreme Court of Alaska.

February 10, 1978.

Attorney(s) appearing for the Case

J.W. Sedwick and D.A. Burr, of Burr, Pease & Kurtz, Inc., Anchorage, for appellants.

Rodger W. Pegues, Asst. Atty. Gen., Avrum M. Gross, Atty. Gen., Juneau, for appellee.

Before BOOCHEVER, Chief Justice, RABINOWITZ, CONNOR and BURKE, Justices, and DIMOND, Justice Pro Tem.

OPINION

CONNOR, Justice.

This case concerns an oil well discovery royalty which has been the subject of litigation for about 12 years. The case is before us for the second time on appeal.

Appellants leased certain state lands for purposes of oil and gas exploration and related activities pursuant to the terms of State Lease ADL 17594 dated March 1, 1962. Union, as operator for both appellants, drilled a...

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