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SONAT EXPLORATION CO. v. MANN

No. 84-4845.

785 F.2d 1232 (1986)

SONAT EXPLORATION COMPANY, etc., Plaintiff-Appellant, v. William D. MANN and Mann Production, Inc., Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

March 14, 1986.

Attorney(s) appearing for the Case

Jefferson D. Stewart, Grunini, Grantham, Grower & Hewes, James A. Keith, Jackson, Miss., for plaintiff-appellant.

Michael Hartung, Moore, Royals & Hartung, Jackson, Miss., for defendants-appellees.

Before WISDOM, POLITZ and TATE, Circuit Judges.

POLITZ, Circuit Judge:

In this diversity jurisdiction case, we must determine the legal effect, under Mississippi law, of the execution of an AFE ("Authorization for Expenditure") by a non-operator who was not party to the operating agreement covering the subject exploratory gas well. The district court concluded that neither the AFEs signed by the defendants nor their conduct obligated them to pay the drilling costs demanded by Sonat Exploration Company. For the...

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