HOWELL v. TEXACO INC.

No. 100,164.

112 P.3d 1154 (2005)

2004 OK 92

William E. HOWELL, as Trustee of the Howell Family Revocable Trust, Amanda L. Irwin De Martin, individually and as personal representative of the Estate of Georgya Lee Calderon, Anita Sue Loos Zellitti, Betty Frensley, Billy Joe Frensley, Bobbie K. Howell, Daniel E. McCarley, Dean L. McCarley, Dinah L. McCarley, The Hazel Thompson Trust 40%, The Hazel Thompson Trust 60%, J.F. Buck Trust ABC, Jennifer S. Howell, John Ed Mosier, June Mosier Chambliss, Justin Brady Loos, Kenneth S. Howell, Lynn Earl Mosier, Paragon Holding Co., Johnyne Rees, Phillip D. Loos, Richard E. Loos, Robert W. Frensley, Sonya Lynette Meador, William R. Frensley, Susan Frensley, Fran E. Vestal, The Maye Powers Trust, The Patsy A. Hosfeld Trust, Billie Nell Loos, The J.F. Buck Revocable Trust, Doulgas R. Irwin, Jennifer Irwin, Kimberly Kay Loos Rayburn, Jerry Baker, The Deborah Baker Cochran Trust, Angela Baker Steely, Jeffrey Mark Cooper, Leigh Baker Cooper, The Deborah Baker Cochran Childrens Trust, The Jay Allen Satterwhite Revocable Trust, The Betty L. Whitten Trust, The Jerry D. Whitten, Jr., John R. Whitten, The Daisy O. Whitten Trust, Melinda Whitten Craig and Stephen R. Whitten, Petitioners, v. TEXACO INC., Texaco Exploration and Production, Inc., Humphreys Unit, Respondents, Ybles Unit, H.Z. Stiefel Unit, and Milroy Deese Unit, Defendants.

Supreme Court of Oklahoma.

Rehearing Denied May 16, 2005.


Attorney(s) appearing for the Case

Henry C. Bonney, Ronald Edward Corley, Bonney Corley LLP, Duncan, OK; Terry J. Barker, R.K. Pezold, Joseph C. Woltz, Gene Guy Boerner, Pezold Barker & Woltz, Tulsa, OK, for Petitioner.

M. Benjamin Singletary, Oliver S. Howard, Richard Billings Noulles, David Edward Keglovits, Gable & Gotwals, Tulsa, OK; Thomas Taylor Ellis, Elbert J. Buckholts, Ellis Leonard & Buckholts, Duncan, OK, for Respondent.

Douglas Burns, Terry Lee Stowers, Burns & Stowers, P.C., Norman, OK, for Amicus Curiae Coalition of Oklahoma Surface and Mineral Owners, Inc.

Mark D. Christiansen, Crowe & Dunlevy, Oklahoma City, OK, for Amicus Curiae Mid-Continent Oil and Gas Association of Oklahoma.

John Richard Reeves, Mock, Schwabe, Waldo, Elder, Reeves & Bryant, Oklahoma City, OK, for Amicus Curiae American Petroleum Institute.


TAYLOR, J.

¶ 1 The issues presented for review are: (1) What is the appropriate method for determining market value of gas at the wellhead if the first arm's-length sale occurs after the gas has been processed; (2) Whether a producer has a fiduciary duty to a royalty owner based solely on a lease and communitization agreement; and (3) Whether there is a genuine issue of material fact that the producer is liable to the...

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