Pursue Energy Corporation v. AbernathyAnnotate this Case
The central issue in this case was whether an oil company could deduct reasonable processing and investment costs from the payments it made to royalty owners. If so, the Supreme Court had to determine whether Mississippi code 53-3-39 was applicable in calculating the damages owed to the royalty owners for unreasonable deductions. Upon review, the Supreme Court affirmed the chancellor's holding that reasonable processing and investment costs could be deducted from royalty owners' payments. However, the Court determined that the chancellor erred by failing to apply 53-3-39 to calculate damages. Thus, the Court partly affirmed, partly reversed the chancellor's decision, and remanded the case for recalculation of damages.