Hunt Petroleum Corp. v. State

The gas lease in this case expressly required Hunt to report its "gross proceeds" and to pay royalties equal to 25% of those "gross proceeds" to the State Lands Division of the Department of Conservation and Natural Resources. The record contains clear and convincing, although disputed, evidence that Hunt intentionally reported as the "gross proceeds" identified by the lease what Hunt knew to be net proceeds — net of deductions forbidden by the lease — and that Hunt intentionally underpaid the royalties by calculating them as 25% of such lower net proceeds instead of the greater "gross…