Holmes v. Kewanee Oil Co.

The opinion of the court was delivered by

Herd, J.:

These are consolidated actions on oil and gas leases to recover the difference between royalties paid pursuant to gas purchase contracts and royalties claimed based on market value. The relevant period is 1972 to 1982. The appeal is from the trial court’s order awarding the increased royalty payments requested in the amount of $272,391.68, prospective relief and prejudgment interest thereon. The essential facts are undisputed.

The Medicine Lodge gas field was discovered in Barber County in 1927. In 1929, the producer, Barbara Oil Company,…