Frederick J. Frey v. Amoco Production Company

In Frey v. Amoco Production Co., 943 F.2d 578 (5th Cir.1991) we decided, inter alia, that when a Louisiana mineral lease provides the lessor “royalty on gas sold by the Lessee of one-fifth (Vs) of the amount realized at the well from such sales,” take- or-pay payments, received by the lessee from a pipeline-purchaser for gas not taken, are subject to the lessor’s royalty. Id. at 580-86. Our decision states the meaning of this suit’s royalty clause as a matter of Louisiana law. While we continue to believe in the propriety of our rationale and its consequence, Amoco convinces us in its…