Lightcap v. Mobil Oil Corporation

The crux of this controversy is the amount of royalty Kansas landowners have the right to be paid pursuant to the leases before the court. The landowners claim that such royalty payments should be based on the arbitrated prices of 16.75 and 15.00 cents per Mcf fixed pursuant to the “A” and “B” contracts, respectively. Mobil claims the basis for royalty must be the rates finally approved by order of the Federal Power Commission.

During the period of this controversy, late 1958 through June 10, 1963, the contract prices in effect under the “A” and “B” contracts between the lessee and pipeline…