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CONOCOPHILLIPS v. DEPT. OF NAT. RESOURCES

No. S-11131.

109 P.3d 914 (2005)

CONOCOPHILLIPS ALASKA, INC., Exxon Mobil Corporation, Exxonmobil Alaska Production Inc., and Forest Oil Corporation, Appellants, v. STATE of Alaska, Department of Natural Resources, Appellee.

Supreme Court of Alaska.

Rehearing Denied April 27, 2005.

Attorney(s) appearing for the Case

Joseph J. Perkins, Jr., Guess & Rudd, P.C., Anchorage, for Appellants.

Leonard H. Herzog, Assistant Attorney General, Anchorage, and Gregg D. Renkes, Attorney General, Juneau, for Appellee.

Before: BRYNER, Chief Justice, MATTHEWS, EASTAUGH, FABE, and CARPENETI, Justices.

OPINION

BRYNER, Chief Justice.

I. INTRODUCTION

ConocoPhillips Alaska, Inc., Exxon Mobil Corporation, ExxonMobil Alaska Production Inc., and Forest Oil Corporation (the corporations) applied to reduce the rate of lease royalties they owed the State of Alaska under a state lease initially executed in 1965. They claimed that they were entitled to a "discovery royalty" rate because they were the first producers to discover oil in a new geologic...

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