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MANUFACTURERS NAT'L BANK v. DNR

Docket Nos. 69371, 69372. (Calendar No. 4).

420 Mich. 128 (1984)

362 N.W.2d 572

MANUFACTURERS NATIONAL BANK OF DETROIT v. DEPARTMENT OF NATURAL RESOURCES

Supreme Court of Michigan.

Decided December 28, 1984.

Released January 9, 1985.

Attorney(s) appearing for the Case

Lynch, Gallagher, Lynch, Shirley, Martineau & Campbell (by Byron P. Gallagher) for the plaintiffs.

Frank J. Kelley, Attorney General, Louis J. Caruso, Solicitor General, and Terrence P. Grady and Russell E. Prins, Assistant Attorneys General, for the Department of Natural Resources.

Loomis, Ewert, Ederer, Parsley, Davis & Gotting (by George W. Loomis, Harvey J. Messing, Michael G. Oliva, and Ronald W. Bloomberg) and Joseph H. Fields and William H. Stephens, III, for Shell Oil Company and Northern Michigan Exploration Company.

BRICKLEY, J.

The questions in this case are whether the creation of a drilling unit by the Director of the Department of Natural Resources, in his capacity as Supervisor of Wells,1 amounts to a pooling of the legal interests of those whose lands are within the unit, and, if so, whether the Supervisor of Wells may permissibly allocate the production royalties of the well to lands within the unit which are not underlain by oil or gas. We...

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