Enron Oil and Gas Co. v. Lujan

JUSTICE, District Judge:

Plaintiffs-appellants (“Enron”) appeal the grant of summary judgment by the district court in favor of defendants-appel-lees, the Department of Interior and others (collectively “DOI”). 778 F.Supp. 348 (S.D.Tex.1991). The issue on appeal is whether it was permissible and reasonable for the DOI-lessor to include state severance tax reimbursements, paid to lessee Enron by purchasers of its gas, as part of Enron’s “gross proceeds,” in calculating the royalty valuation of gas production from federal leases. •

I. BACKGROUND

Enron leases federal public domain property in Utah…