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FREY v. AMOCO PRODUCTION CO.

No. 90-3553.

943 F.2d 578 (1991)

Frederick J. FREY, et al., Plaintiffs-Appellants, v. AMOCO PRODUCTION COMPANY, Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

October 7, 1991.

Attorney(s) appearing for the Case

Frederick W. Ellis, Thomas C. McKowen, IV, Strain, Dennis, Ellis, Mayhall & Bates, David M. Ellison, Jr., Ellison & Smith, Baton Rouge, La., for plaintiffs-appellants.

Frank J. Peragine, Christina H. Belew, Simon, Peragine, Smith & Redfearn, New Orleans, La., for defendant-appellee.

Before REAVLEY, KING and JONES, Circuit Judges.

REAVLEY, Circuit Judge:

Frederick J. Frey and other gas royalty interest owners (collectively Frey) appeal from the district court's rulings that: (1) under the terms of the Louisiana gas lease at issue, take-or-pay payments received by the lessee under its gas sales contract are not part of the amount realized from the sale of gas; (2) royalty miscalculation claims based on royalties paid more than three years before suit are prescribed; and

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