Cities Service Oil & Gas Corp. v. State

URBIGKIT, Justice.

In this case, we decide entitlement of the State of Wyoming (State) to receive royalties on tax reimbursements paid by gas purchasers to Oxy USA, Inc. (Oxy), a natural gas producer previously known as Cities Services Oil and Gas Corporation. We also consider assessment of statutory high rate penalty interest on unpaid and past-due royalties.

With resolution of cross appeals from the trial court decision, we affirm the trial court’s ruling that the State is entitled to royalties on ad valorem, severance and conservation tax reimbursements under the “federal floor” provision in…