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IN RE CENTURY OFFSHORE MANAGEMENT CORP.

No. 95-6320.

111 F.3d 443 (1997)

In re CENTURY OFFSHORE MANAGEMENT CORPORATION, Debtor. UNITED STATES of America, Plaintiff-Appellant, v. CENTURY OFFSHORE MANAGEMENT CORPORATION, Defendant-Appellee.

United States Court of Appeals, Sixth Circuit.

Decided April 14, 1997.

Attorney(s) appearing for the Case

Robert L. Klarquist, William B. Lazarus (argued and briefed), U.S. Department of Justice, Land & Natural Resources Division, Washington, DC, J. Christopher Kohn, Tracy J. Whitaker, Sidney P. Levinson, Office of the Department of Justice, Civil Division, Washington, DC, for Plaintiff-Appellant.

Solomon L. Van Meter, Wyatt, Tarrant & Combs, Lexington, KY, Jerry E. Rothrock (argued and briefed), Akin, Gump, Strauss, Hauer & Feld, Washington, DC, H. Rey Stroube, III, Akin, Gump, Strauss, Hauer & Feld, Houston, TX, for Defendant-Appellee.

Kelly S. Brooks (briefed), New Mexico State Land Office, Santa Fe, NM, for Amicus Curiae Commissioner of Public Lands for the State of New Mexico.

Frederick C. Whitrock, Asst. Atty, General (briefed), Louisiana Department of Natural Resources, Civil Division, Baton Rouge, LA, for amici curiae State of Louisiana, Louisiana Department of Natural Resources.

Before: MERRITT, JONES, and COLE, Circuit Judges.

MERRITT, Circuit Judge.

SUMMARY

This case arises from the bankruptcy of Century Offshore Management Corporation, a natural gas producer and the lessee of federally-owned submerged lands in the Gulf of Mexico. Century sold gas to Enron Gas Marketing, Inc. under five- and five-and-a-half-year, fixed price contracts. The Minerals Management Service of the United States Department of the Interior seeks to obtain $1,855,004 in royalties on a $12,250,000 lump...

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