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TESORO ALASKA PETROLEUM CO. v. STATE

No. S-2400.

757 P.2d 1045 (1988)

TESORO ALASKA PETROLEUM COMPANY, Petitioner, v. STATE of Alaska; Commissioner of Natural Resources, State of Alaska; Director of the Division of Lands, State of Alaska; Amerada Hess Corporation; Atlantic Richfield Company; BP Alaska Inc.; BP Alaska Exploration, Inc.; Exxon Corporation; Getty Oil Company; Hunt Industries; Caroline Hunt Trust Estate; Lamar Hunt Trust Estate; N.B. Hunt; the Louisiana Land and Exploration Company; Marathon Oil Company; Mobil Oil Corporation; Sohio Petroleum Company; Chevron U.S.A., Inc.; Placid Oil Company; Phillips Petroleum Company; Partnership Properties Co., a Colorado general partnership; Petro-Lewis Corporation; Union Oil Company of California; Amoco Production Company, Respondents.

Supreme Court of Alaska.

Rehearing Granted in Part and Opinion Amended August 16, 1988.

Attorney(s) appearing for the Case

Bruce E. Gagnon and Patrick B. Gilmore, Atkinson, Conway & Gagnon, Anchorage, and J. Paul McGrath, David A. Koenigsberg and Cheryl A. Adams, Dewey, Ballantine, Bushby, Palmer & Wood, New York City, for petitioner.

Robert E. Stoller and Wilson L. Condon, Anchorage, for respondent State of Alaska.

William B. Rozell, Faulkner, Banfield, Doogan & Holmes, Juneau, for respondents Atlantic Richfield Co. and ARCO Alaska, Inc.

Carl J.D. Bauman, Hughes, Thorsness, Gantz, Powell & Brundin, Anchorage, for all respondent Companies other than Atlantic Richfield and ARCO Alaska, Inc.

Before RABINOWITZ, BURKE and MOORE, JJ.

OPINION

MOORE, Justice.

Tesoro Alaska Petroleum Co. contracted with the State to purchase oil which the State received as royalty payments from other lessees of oil rights on Alaska North Slope fields. The price to be paid by Tesoro was tied to the results of State of Alaska v. Amerada Hess Corporation, No. 1JU 77-847 Civil, currently pending in superior court, in which the State and a number of oil producers are disputing the proper amount of royalty...

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