FREY v. AMOCO PRODUCTION CO.

No. 92-CQ-0091.

603 So.2d 166 (1992)

Frederick J. FREY, et al. v. AMOCO PRODUCTION COMPANY.

Supreme Court of Louisiana.

Rehearing Denied September 3, 1992.


Attorney(s) appearing for the Case

Gilbert F. Ganucheau, Clerk, U.S. Fifth Circuit, Court of Appeal, Slidell, for applicant.

Frederick W. Ellis, Thomas C. McKowen, IV, Strain, Dennis, Ellis, Mayhall & Bates, David McQuown, Ellison, Jr., Esq., Ellison & Smith, Baton Rouge, Frank J. Peragine, Thomas Robert Blum, Charles C. Coffee, Christina Anne Harris Belew, Simon, Peragine, Smith & Redfearn, New Orleans, Jackson M. Cooley, Houston, Tex., for respondents.

George Julien Domas, Deborah Bahn Price, Jonathan Andrew Hunter, Cheryl Mollere Kornick, Jane J. Boleware, Liskow & Lewis, New Orleans, for Anadarko Petroleum Corp., Atlantic Richfield Co., Chevron U.S.A., Inc., Conoco, Inc., Enron Oil & Gas Co., Exxon Corp., Fina Oil & Chemical Co., Marathon Oil Co., Mobil Oil Expl. & Prod. SE Inc., Mobil Expl. & Prod. Co., OXY USA, Inc., Pennzoil Expl. & Prod. Co., Shell Western E & P, Inc., Texas Expl. Corp., UNOCAL Expl. Corp., and Union Pacific Resources Co. (amicus curiae)

John Allen Bernard, Edward C. Abell, Jr., Kevin Roy Rees, John William Kolwe, Onebane, Donohoe, Bernard, Torian, Diaz, McNamara & Abell, Lafayette, for Tennessee Gas Pipeline Co. (amicus curiae).

John M. McCollam, Bobbie Joseph Duplantis, Philip Nicholas Asprodites, Paul Edward Bullington, James Louis Weiss, Gordon, Arata, McCollam & Duplantis, New Orleans, for Preston Oil Co. and BHP Petroleum (Americas) (amicus curiae).

John R. Martzell, Scott R. Bickford, Thomas Wade Noland, Regina O. Matthews, Martzell, Thomas & Bickford, New Orleans, for Martha Miller Stoute, Thomas Mounger, Betty Duplantis Brown, Argyle Land Co. (amicus curiae).

Donald Burnham Ensenat, Larry S. Bankston, Daniel Kent Rester, Stephen Thomas Perkins, Hoffman, Sutterfield, Ensenat & Bankston, New Orleans, for Dennis Bickham, III and Renee Bickham Priest (amicus curiae).

John H. Cheatham, III, Washington, D.C., for Interstate Natural Gas Ass'n of America (amicus curiae).

Newman Trowbridge, Jr., Darnall, Biggs, Trowbridge, Supple & Cremaldi, Franklin, for Louisiana Landowners Ass'n, Inc. (amicus curiae).

Richard Phillip Ieyoub, Atty. Gen., Frederick Coller Whitrock, Asst. Atty. Gen., Harold Louis Lee, Staff Atty., James Joseph Devitt, III, Ernest R. Eldred, Eldred & Clauer, Baton Rouge, for State of Louisiana, Richard P. Ieyoub, State Mineral Bd. and Dept. of Natural Resources ("State") (amicus curiae).


COLE, Justice.

Frederick J. Frey and other owners of gas royalty interests ("Frey") under a mineral lease ("Lease") commenced suit against their mineral lessee, Amoco Production Company,1 in the United States District Court for the Eastern District of Louisiana to recover a royalty share of the proceeds received by Amoco in settlement of the take-or-pay litigation ("Settlement Agreement") arising under the "Gas Purchase and Sales Agreement...

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