Estate of Algerine Allen Smith, Deceased, James Allen Smith, Executor - Page 16

                                       - 16 -                                         
          claim was enforceable at the time of decedent's death.  We                  
          disagree.                                                                   
               The record clearly indicates that the issue in Exxon I was             
          whether Exxon had overcharged its crude oil purchasers for oil              
          produced in the HFU.  Contrary to petitioner's argument, Exxon I            
          did not consider whether Exxon had overpaid its royalty and                 
          working interest owners in the HFU.  While Exxon attempted to               
          join the Jarvis Christian plaintiffs as indispensable parties,              
          its efforts were unsuccessful.  Rather, the Jarvis Christian                
          plaintiffs were invited to intervene in Exxon I if they "desired            
          'an earlier determination' of their claims" that Exxon should               
          continue paying them royalties based on the higher price under              
          the two-tier system.  United States v. Exxon Corp., 773 F.2d at             
          1271 n.32.  In affirming the decision of the District Court in              
          Exxon I, the Temporary Emergency Court of Appeals stated that the           
          decision in no way affected any rights or responsibilities of               
          other interest owners in the HFU.  See id. at 1271.  In addition,           
          the January 16, 1990, joint motion for summary judgment filed by            
          the defendants in the Jarvis Christian litigation (and adopted by           
          the Allen parties) recognized as much in stating that "the courts           
          [in Exxon I] explicitly said that Exxon's liability was                     
          predicated solely upon its own misconduct and not upon any notion           
          of vicarious liability arising out of obligations owed by other             
          interest owners to the government."                                         






Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  Next

Last modified: May 25, 2011