Pursue Energy Corp. v. Abernathy

KING, Justice,

for the Court:

¶ 1. This Court must determine whether an oil company can deduct reasonable processing and investment costs from the payments made to royalty owners. If so, we must determine whether Mississippi Code Section 53-3-39 is applicable in calculating the damages owed to royalty owners for unreasonable deductions. We affirm the chancellor’s holding that reasonable processing and investment costs may be deducted from royalty owners’ payments. However, the chancellor erred in failing to apply Section 53-3-39 to calculate damages. Thus, we affirm in part, and reverse and…