Government Contracting -- 2001
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OXY USA, Inc. v. Babbitt
(10th Circuit)
Retroactive changes in oil and gas lease royalties
When the federal Minerals Management Service issued orders directing OXY USA and Shell Oil Co. to pay additional oil and gas drilling royalties, they sued, claiming that the government’s charges were unilateral, retroactive contract changes that were prohibited by the statute of limitations. The NAM supported a petition for rehearing en banc, and the 10th Cir. agreed, reversing an earlier panel ruling. The case is important to companies with federal MMS leases, but also shows that NAM participation can help convince an appellate court to reconsider the decision of some of its judges.
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