Total E & P USA, Inc. v. Kerr-McGee Oil & Gas Corp.

I

Because royalty suspension is a term or condition of royalty payment under the lease and the “calculate and pay” clauses of the assignment contracts make the overriding royalty interests subject to the same terms and conditions as the landowner’s royalty under the lease, I respectfully dissent from the majority’s conclusion that the assignment contracts are ambiguous.

Royalty suspension is unambiguously a term or condition of the landowner’s royalty under the lease. The first footnote of the lease states, “This lease may be eligible for royalty suspension pursuant to PL 104-58.” PL 104-58…