SMITH v. AMOCO PRODUCTION COMPANY

No. 84,076.

272 Kan. 58 (2001)

31 P.3d 255

GEORGE SMITH, Individually, and on Behalf of a Class Composed of all Oil and Gas Royalty Owners Whose Royalty Payments for Natural Gas were Reduced on a per MMBTU Basis Due to Renegotiation, Amendment to or Termination of the Gas Purchase Contract[s] between Amoco Production Company and Williams Natural Gas after the Effective Date of Order 451 Issued by the Federal Energy Regulatory Commission, Appellants/Cross-appellees, v. AMOCO PRODUCTION COMPANY, Appellee/Cross-appellant.

Supreme Court of Kansas.

Opinion filed September 21, 2001.


Attorney(s) appearing for the Case

Lee Thompson, of Triplett, Woolf & Garretson, L.L.C., of Wichita, argued the cause, and Gordon Penny, of Lawrence, was with him on the briefs for appellants/ cross-appellees.

Richard C. Hite, of Hite, Fanning & Honeyman, L.L.P., of Wichita, argued the cause, and Dennis V. Lacey, of the same firm, Eric L. Nitcher and Tom Winkler, of Amoco Production Company of Houston, Texas, Steven D. Gough, of Powell, Brewer & Gough, L.L.P., of Wichita, and Eric B. Smith, of Brollier & Wolf, of Hugoton, were with him on the briefs for appellee/cross-appellant.


The opinion of the court was delivered by

SIX, J.:

This case resolves whether a 3- or 5-year statute of limitations applies to an alleged breach of implied covenants in an oil and gas lease. The actions of defendant Amoco Production Company. (Amoco), the producer lessee, under an implied covenant to market in a government-controlled gas price environment are also at issue. Although other jurisdictions have addressed the statute of limitations issue, Kansas...

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