Brown v. Shell Oil Co.

Plaintiffs appeal as of right from a Grand Traverse County Circuit Court order grant ing defendant partial summary judgment, GCR 1963, 117.2(1).

Plaintiffs are holders of royalty interests as lessors of mineral rights in oil wells owned and operated by defendant, Shell Oil Company. Shell deducts a pro-rata share of the state severance tax on oil and gas, MCL 205.301 et seq.; MSA 7.351 et seq., from plaintiffs’ royalty interests. The leases between plaintiffs and Shell are silent regarding defendant’s authority to withhold and deduct such taxes from plaintiffs’ royalties. Plaintiffs brought…