Amerada Hess Corporation v. Department of Interior
Court of Appeals for the Tenth Circuit
1Opinion of the Court
LUCERO, Circuit Judge.
In this case, we are asked primarily to determine whether reimbursements for certain production-related costs, received by a federal gas lessee from its gas purchasers under an administrative order of the Federal Energy Regulatory Commission (“FERC”), are properly subjected to federal royalties by the Secretary of the Interior (“Secretary”) under the authority of the Outer Continental Shelf Lands Act (“OCSLA”), 43 U.S.C. §§ 1331-1356. We are also required to resolve whether the Secretary’s claims may be offset by the lessee’s own. claims for reimbursement from the…
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