GENOVESE, Judge.
In this suit for damages arising out of a mineral lease, the current operators/lessees, Oleum Operating Company, L.C. and AKSM, L.C., appeal the trial court judgment in favor of the overriding royalty interest owners, Jerry J. and Antonia G. Suire, Preston Andrews and Susan R. Price, and Steven and Paula Haller. The overriding royalty interest owners and J & J Onshore Production, Inc.,
This litigation involves the alleged failure of Oleum Operating Company, L.C. and AKSM, L.C. (collectively referred to as Oleum)
Since 1947, there have been several different operators/lessees of the property owned by Sweet Lake. A portion of the ORI at issue in this litigation was created in 1989, when Flash Oil & Gas granted an ORI to its owners, Preston Price and Steven Haller (and their wives Susan R. Price and Paula Haller), collectively amounting to 2.0153%, and a 3% ORI to Jerry Suire.
Over time, the relationship between Sweet Lake and J & J, particularly Mr. Suire, became strained, and, in 2000, Sweet Lake sued J & J, claiming that the Old Lease was terminated.
According to Oleum, "Mr. Snell was able to fashion a release of the Old Lease and the creation of a new one." The New Lease was more onerous and less profitable to Oleum, but was necessary for it to avoid what it perceived to be a "disastrous potential liability[.]" Oleum describes a "distinct break between the Old Lease and the New Lease ... driven by an aggressive landowner with enormous leverage under the circumstances." Crucial to the claims of "bad faith" raised by the ORI owners in this litigation, Oleum argues that "it was those circumstances, and those alone, that led to the New Lease." This characterization is critical to the present claims in that Oleum concludes that "[w]hen the Old Lease ceased to exist[,] so did [the] overriding royalty interest[s]. Nevertheless, [the ORI owners] seek money damages equal to the value of the override as though it attached to the New Lease."
In contrast, the ORI owners describe the actions of Mr. Snell, culminating in the New Lease in 2008, quite differently. Initially, they assert that production was continuing on a lease that had "never terminated" when Sweet Lake made a demand on Oleum in 2008, "making the same allegations they had in 2003." The ORI owners posit that although "[i]n 2003 Oleum successfully refuted these unfounded allegations[,]" in 2008, it "took positive action to terminate a valid lease." Specifically, they argue that Oleum, through Mr. Snell, saw Sweet Lake's demand "as an opportunity to release the existing lease and enter a new lease rather than amend the existing lease as had been done in 2003[,]" all to their detriment. Moreover, they argue that an agreement as to the terms of the 2008 Release was reached between Oleum and Sweet Lake, the result of which was an attempt "to eliminate the rights of the overriding royalty interests which attached to the 1947 Amended Lease." Notably, as a result of the New Lease, what was once their ORI was transferred to Mr. Snell personally and "resulted in significant personal financial gain at [their] expense[.]" Again, germane to the issue of "bad faith," the ORI owners conclude that Oleum, "acting through Mike Snell, released the 1947 Amended Lease motivated by anger, ill will, and hatred ... and by a desire to take the revenues attributable to the [ORI owners] for themselves."
In the interim, following the 2003 settlement agreement, Oleum had continued to
What follows is a chronology of events occurring from the institution of the Old Lease through the scenario existing as of 2008 that are relevant to this litigation:
DATE DOCUMENT PARTIES 4/10/1947 Original 1947 J.A. Bonham Mineral Sweet Lake to J.A. Bonham Lease (Old Lease) 9/1/1989 Assignment & Bill of Sale BP Exploration, Inc. to Jerry Suire 9/1/1989 Assignment & Bill of Sale & Jerry Suire to Flash Oil & Gas Conveyance 9/1/1989 Assignment of ORI (Flash Override) Flash Oil & Gas to Jerry Suire-ORI of 3% 5/23/1991 Assignment of ORI (Flash Override) Flash Oil & Gas to Preston A. Price and Susan Price-ORI of 1.007650% Steven Haller and Paula Haller-ORI of 1.007650% 5/15/2000 Purchase and Sale Agreement J & J to Oleum 5/24/2000 Assignment & Bill of Sale J & J to Oleum 6/14/2000 Assignment of ORI (Suire Override) Oleum to Jerry Suire-ORI of 1.98% 5/28/2003 Amendment to Lease (1947 Amended Sweet Lake and Oleum Lease) 5/28/2003 Settlement Agreement and Release Sweet Lake, Oleum, and J & J 7/5/2005 Assignment & Bill of Sale Oleum to AKSM 7/5/2005 Assignment of ORI Oleum to Mike Snell-ORI of 5% 7/2/2008 Conveyance of NRI13 to the 1947 AKSM and Oleum to several persons J.A. Bonham Lease including Mike Snell individually ORI of 10% 7/2/2008 Act of Release (2008 Release) AKSM and Oleum 7/2/2008 New Oil and Gas Lease (New Lease) Sweet Lake to AKSM 7/29/2008 Act of Correction to Release AKSM and Oleum
Purportedly, the foregoing culminated in the 2008 Release by Defendants, Oleum and AKSM, of what was originally the 1947 mineral lease in which Plaintiffs, Jerry and Antonia Suire, and Intervenors, Preston Andrews and Susan R. Price and Steven and Paula Haller, had an ORI. Once released, a New Lease was entered into by Sweet Lake and AKSM, which wholly eliminated these ORIs and gave
As a result of these events, suit was instituted by the Suires against Oleum and AKSM, initially seeking unpaid ORI, penalties, and attorney fees. After the initial petition was filed, a number of incidental demands were made by and against the various parties. Claims of intervention were asserted by the Prices and the Hallers for their unpaid ORI, penalties, and attorney fees. Oleum filed a reconventional demand against the Suires, asserting that it was entitled to an offset and/or recoupment of ORI payments made to Mr. Suire and, further, that their ORI was subject to a reduction based upon the PRC. Oleum later supplemented its reconventional demand against the Suires, seeking damages for a misrepresentation of the condition of the C-8 wellbore.
Oleum also filed a third party claim against J & J, claiming that it was entitled to a reimbursement of the ORI payments erroneously made to J & J. Alternatively, Oleum asserted that if it were determined that it had improperly taken certain offsets, that these amounts were still owed by J & J to Oleum. Claims were also made against J & J for damages relative to the C-8 wellbore.
J & J filed a reconventional demand against Oleum, alleging that Oleum breached the terms of their May 15, 2000 Purchase and Sale Agreement, whereby J & J sold its interest in the 1947 Amended Lease to Oleum by failing to pay Mr. Suire his 1.98% ORI and in failing to provide J & J notice of its attempt to release the lease. Further, J & J contended that Oleum's failure to obtain J & J's agreement was a breach of the 2003 settlement agreement.
After a trial on the merits, the trial court recited oral reasons for judgment in favor of the ORI owners and dismissed the other ancillary claims between the parties.
Oleum filed a Motion for New Trial, which was denied by the trial court pursuant to judgment of February 20, 2013. Oleum has appealed the October 15, 2012 judgment from the trial on the merits as well as the February 20, 2013 judgment denying its Motion for New Trial.
On appeal, Oleum presents the following assignments of error for our review:
On appeal, the Suires present the following assignments of error for our review:
On appeal, the Prices and Hallers present the following assignments of error for our review:
On appeal, J & J presents the following assignments of error for our review:
This complex litigation stems from a mineral lease encumbering certain immovable property in Calcasieu Parish. The parties before this court pray for relief that includes (but is not limited to) a judicial declaration of the validity of the 2008 Release and the consequences thereof insofar as its purpose was to terminate the 1947 Amended Lease, as well as a declaration of the validity of the New Lease and the consequences thereof.
At all times relevant to this appeal, Sweet Lake has been the owner of the subject property, the lessor under the Old Lease, the lessor under the 1947 Amended Lease, and the lessor under the New Lease, which are at the core of this litigation.
With regard to the joinder of parties needed for just adjudication, La.Code Civ.P. art. 641 (emphasis added) provides:
An adjudication of whether the 2008 Release was valid and, consequently, whether the 1947 Amended Lease or the New Lease governs today, directly affect the immovable property owned by Sweet Lake. To effectuate complete adjudication, it is necessary that Sweet Lake be joined as a party to this litigation due to the effect that a judgment will have on which lease presently encumbers its property and the present operations under that lease. Certainly, Sweet Lake will be impacted by a judicial finding as to the continued validity of a lease, an effective release thereof, and/or the entry into a new lease in which it has an interest in as lessor. Cf. Nab Natural Res., L.L.C. v. Caruthers Producing Co., Inc., 33,726 (La. App. 2 Cir. 8/25/00), 765 So.2d 1241 (Owners of the mineral and leasehold interests in a lease, who would be impacted by an adjudication as to the validity of a lease, or a lapse thereof, were required to be joined in an action by an alleged owner of an unleased interest in an oil and gas well against the operator of the well.); City of Shreveport v. Petrol Indus., Inc., 550 So.2d 689 (La.App. 2 Cir.1989) (Lot owners within a forty-acre tract were indispensable parties in an action brought by the city against a unit operator seeking an increase in its pro rata share of production royalty.).
Louisiana Code of Civil Procedure Article 641 specifically provides that "a person shall be joined as a party in the action" if "[h]e claims an interest relating to the subject matter of the action and is so situated that the adjudication of the action in his absence may ... [a]s a practical matter, impair or impede his ability to protect that interest" or may "[l]eave any of the persons already parties subject to a substantial risk of incurring multiple or inconsistent obligations." In the case at bar, given the issues raised by those already parties to these proceedings, we find that Sweet Lake is a party needed for just adjudication pursuant to La.Code Civ.P. art. 641.
We are cognizant of the fact that Oleum filed a motion in the trial court seeking permission to file a third party demand against Sweet Lake and that its motion was denied by the trial court. However, the claim Oleum sought to assert against Sweet Lake was only for indemnification against the claims of the ORI owners.
The allegations underlying the claims asserted by the parties are not only relevant to the necessity of Sweet Lake being made a party, they are critical to the appeal before this court insofar as we are unable to consider several of the issues raised on appeal due to the failure of the parties to raise these issues in the trial court. The record establishes that this case was presented to the trial court and was tried within the framework of a 2008 Release and a New Lease, and the resultant consequences to the parties. Now, on appeal, the validity of these documents are being called into question. In other words, in the trial court, the ORI owners sought damages from Oleum not only for damages for past due royalties owed, but also for damages resulting from the release of the 1947 Amended Lease which terminated their ORIs. Whereas, subsequently on appeal, the ORI owners argue that their ORIs actually remain in effect because the 2008 Release was invalid.
"Generally, a court of appeal will not consider an issue which is raised for the first time on appeal. Stewart v. Livingston Parish Sch. Bd., 07-1881 (La.App. 1 Cir. 5/2/08), 991 So.2d 469; Uniform Rules — Courts of Appeal, Rule 1-3." Gremillion v. Gremillion, 10-05, p. 6 (La. App. 3 Cir. 7/7/10), 43 So.3d 1063, 1068, writ denied, 10-2125 (La. 12/10/10), 51 So.3d 726. Because these issues are being presented for the first time on appeal, we conclude that these issues have not been preserved for our consideration.
Having found Sweet Lake to be a party needed for just adjudication of certain issues raised by the parties on appeal, specifically the validity of the 2008 Release and the New Lease, and considering the failure of the parties to raise these issues in the trial court to the extent that they are not addressed in the judgment, we do not consider the following assignments of errors of the parties:
In its first assignment of error, Oleum asserts that the trial court erred in awarding damages based upon Oleum's release of the 1947 Amended Lease. We agree with Oleum that an award for damages resulting from the 2008 Release was erroneous. However, the damages awarded by the trial court to each of the ORIs were comprised of two components: (1) amounts for past due royalties owed; and (2) amounts the ORIs would have received but for the 2008 Release.
For the reasons hereinafter set forth addressing other assignments of error considered in this opinion, we find no error in the trial court's award of past due royalties owed by Oleum to the Suires. However, we affirm, as amended herein, the amount awarded by the trial court for past due royalties owed to the Hallers and the Prices. Finally, we reverse the trial court's awards of damages in favor of the Suires, the Hallers, and the Prices, based on the projected values of the ORIs had they attached to the New Lease.
As stated above, for the reasons hereinafter set forth addressing other assignments of error considered in this opinion, we find no error in the trial court's award of past due royalties owed the Suires by Oleum. Therefore, we affirm the judgment of the trial court in favor of the Suires for $283,282.79.
Considering the lack of any assignments of error raised relative to the amount of the past due royalties awarded to the Hallers, we need not and do not consider the amount of damages awarded by the trial court for these damages occurring prior to the 2008 Release and New Lease. However, because the judgment of the trial court renders a total amount to the Hallers, without specifying what portion of that amount constitutes past due royalties owed, we must and do amend that portion of the judgment to conform it with allowing only damages occurring prior to the 2008 Release and New Lease.
With respect to Steven Haller, the trial court rendered judgment "for the full sum" of $101,378.00. When reconciled with the trial court's oral reasons, it is clear that this figure represents the amount the trial court awarded Mr. Haller
A separate award is made in the judgment to Paula Haller, also designated "for the full sum of" $101,378.00. Again, considering the trial court's oral reasons, it is clear that this figure represents the amount the trial court awarded Mrs. Haller for the two elements of damages combined. Accordingly, we affirm the judgment of the trial court awarding Mrs. Haller past due royalties owed, but we amend said judgment to reflect that the correct amount owed by Oleum to Mrs. Haller for this component of damages is $13,475.00.
Considering the lack of any assignments of error raised relative to the amount of the past due royalties awarded to the Prices, we need not and do not consider the amount of damages awarded by the trial court for these damages occurring prior to the 2008 Release and New Lease. However, because the judgment of the trial court renders a total amount to the Prices, without specifying what portion of that amount constitutes past due royalties owed, we are forced to amend that portion of the judgment to conform it with allowing only damages occurring prior to the 2008 Release and New Lease.
With respect to the Prices, the trial court rendered judgment "for the full sum" of $202,857.00 in globo. When reconciled with the trial court's oral reasons, it is clear that this figure represents the amount the trial court awarded the Prices for the two elements of damages combined.
The second component of damages awarded by the trial court is an award for damages for the amounts that the ORI owners would have received had there not been a 2008 Release. These amounts are based upon projected values of the ORIs had they attached to the New Lease in July 2008 through trial. Because this second component of damages is inextricably tied to the validity, vel non, of the 2008 Release and the New Lease, which was not specifically ruled on by the trial court, and because a necessary party, Sweet Lake, was not a party to this litigation, we find the trial court erred in rendering these damage awards.
For the foregoing reasons, we reverse the judgment of the trial court in favor of the Suires in the amount of $868,872.43.
For the foregoing reasons, we reverse the judgment of the trial court in favor of Mr. Haller in the amount of $87,903.00 ($101,378.00-$13,475.00).
For the foregoing reasons, we reverse the judgment of the trial court in favor of Mrs. Haller in the amount of $87,903.00 ($101,378.00-$13,475.00).
For the foregoing reasons, we reverse the judgment of the trial court in favor of the Prices in the amount of $175,808.00 ($202,857.00-$27,049.00).
In its final assignment of error, Oleum asserts that the trial court erred in ruling that the PRC was invalid and did not serve to reduce Mr. Suire's 1.98% ORI. We find no merit in this assignment of error.
As set forth above, Oleum first delayed and, in June 2007, ultimately stopped paying Mr. Suire's 1.98% ORI. It contended that the PRC was the basis for its actions.
The applicability of the PRC was originally the subject of cross-motions for partial summary judgment filed by Oleum and Mr. Suire. Following a hearing, the trial court denied Oleum's motion and granted Mr. Suire's motion, ruling that Oleum was not entitled to take advantage of the PRC, which it relied upon to reduce the 1.98% ORI payment to Mr. Suire.
The PRC in question is contained within a May 1, 2000 document entitled "ASSIGNMENT OF ORRIDING [sic] ROYALTY INTEREST[.]" The document initially states that Oleum assigns an ORI in the Old Lease to Mr. Suire. It then sets forth that the assignment is subject to certain terms and conditions, including:
Oleum's interpretation of the foregoing provision is that an automatic reduction of the 1.98% ORI it granted to Mr. Suire would occur "if subsequent events caused the Lease to `cover less than full mineral ownership of the track leased.'" (emphasis added). Oleum concludes that the 2003 Settlement triggered the PRC by significantly reducing the scope of the lease.
In opposition to Oleum's motion, and in support of his own motion for partial summary judgment, Mr. Suire argued that the PRC was inapplicable and that he was entitled to full payment of the 1.98% ORI as a matter of law. Mr. Suire notes that despite Oleum's purported reliance on the 2003 Settlement as the trigger for the PRC, Oleum continued to pay him the 1.98% ORI for many years.
Mr. Suire advances two different grounds for the inability of Oleum to invoke the provisions of the PRC. First, the PRC is not contained within any contract between the parties, namely, he (and/or J & J) and Oleum. Second, even assuming there is a valid PRC, Mr. Suire argues that "the clause would not apply because [J & J] fulfilled all the terms of the [PRC]."
First, Mr. Suire identifies the two contracts in which J & J and Oleum had privity: (1) the Purchase and Sale Agreement; and (2) the Assignment and Bill of Sale. He notes that the Purchase and Sale Agreement contains no PRC, and the Assignment and Bill of Sale does not mention any PRC. These being the only two contracts between J & J and Oleum, Mr. Suire points out that the May 1, 2000 document relied upon by Oleum, and containing the PRC, is signed only by Oleum. Neither J & J nor Mr. Suire are signatories on that document. Therefore, Mr. Suire characterizes the May 1, 2000 document as a "unilateral, self-serving document produced by Oleum which first makes the assignment of 1.98% as mandated by the Purchase and Sale Agreement and Assignment and Bill of Sale, but then goes further to place conditions upon the payment of the [ORI] of 1.98%."
Mr. Suire refutes Oleum's contention that the 2003 Settlement, entered into by Sweet Lake, J & J, and Oleum, somehow triggered an "invalid" PRC, thereby reducing his 1.98% ORI. With respect to the 2003 Settlement, Mr. Suire notes that the 1.98% ORI was owed to him personally, and he was not a party to the 2003 Settlement. Additionally, the Settlement Agreement and Release does not mention any reduction of Mr. Suire's ORI, nor does it reference a PRC.
Second, even assuming the PRC is applicable, Mr. Suire asserts that J & J satisfied its terms. He asserts that "[t]here were two conditions placed upon [J & J] that were required to be fulfilled
The trial court's oral reasons reveal that it agreed with Mr. Suire that Oleum could not rely on "subsequent events" to trigger the PRC. When considering the cross motions for partial summary judgment, the trial court reasoned that "even if valid, [the PRC] is inoperable because [J & J] gave what [it] said [it] was going to give." Regardless of its applicability, the trial court concluded that J & J transferred 100% of what it owned as it was obligated to do at the time of the transfer.
We agree with Mr. Suire that the PRC is inapplicable given its absence from any contract between him (and/or J & J) and Oleum. Further, we agree that the obligations of J & J were fulfilled at the time of transfer. Therefore, we find no error in the trial court's grant of Mr. Suire's motion for partial summary judgment and its denial of Oleum's motion for partial summary judgment relative to the PRC.
In their first assignment of error, the Suires assert error in the trial court's failure to award penalties and attorney fees for Oleum's unreasonable failure to pay the ORI. We find no merit in this contention.
The Suires identify three differing periods that Oleum failed to pay the ORI, which they contend entitled them to an award of penalties and attorney fees: (1) Oleum's non-payment of the ORI of August 2006; (2) Oleum's nonpayment of the Suire Override (1.98%) from July 2007 through June 2008; and (3) Oleum's non-payment of the Flash Override (3.0%) from February 2008 through June 2008. In these instances of non-payment, the trial court awarded the Suires the amount of the ORI; however, the trial court did not award any amount of damages in the nature of penalties and attorney fees.
The relevant provisions contained within Louisiana's Mineral Code are found at La. R.S. 31:212.21 through La.R.S. 31:212.23. Louisiana Revised Statutes 31:212.21 (emphasis added) places a prerequisite upon a royalty owner seeking penalties and attorney fees, stating as follows:
Thereafter, the mineral lessee must respond pursuant to La.R.S. 31:212.22 (emphasis added), which provides as follows:
Lastly, La.R.S. 31:212.23(C) (emphasis added) provides, in pertinent part:
Id. at 1290 (emphasis added).
In the case at bar, the parties dispute whether Oleum had "reasonable cause"
In their first assignment of error, the Prices and the Hallers assert error in the trial court's failure to award penalties and attorney fees for Oleum's nonpayment of the ORI. They contend that they were entitled to an award of penalties and attorney fees for Oleum's non-payment their ORI from March 2008 through June 2008. For the non-payment of these ORIs, the trial court actually awarded $26,950.00 in favor of the Hallers and $27,049.00 in favor of the Prices; however, the trial court did not award any penalties and attorney fees. For the reasons set forth above in addressing the Suires' answer to appeal, we, likewise, find no merit in this contention.
J & J argues in its answer to appeal that the trial court erred in denying its claim that Oleum breached the Purchase and Sale Agreement and Assignment and Bill of Sale, which J & J asserted "resulted in voiding the sale, ab initio," and, thereby, entitled J & J to "an award of the profits wrongfully realized by [Oleum]." Having reviewed the scant evidence in the record relevant to this claim, we agree with the trial court that this claim was not proven.
Based on the foregoing, we affirm the trial court's damage award of $283,282.79 for past due royalties owed in favor of Jerry J. and Antonia G. Suire and against Oleum Operating Company, L.C. and AKSM, L.C., together with legal interest from the date each payment was due up through July 2, 2008. We affirm the trial court's award of damages for past due royalties owed in favor of Steven Haller and against Oleum Operating Company, L.C. and AKSM, L.C., but amend the amount of the award to $13,475.00, together with legal interest from the date each payment was due up through July 2, 2008. We affirm the trial court's award of damages for past due royalties owed in favor of Paula Haller and against Oleum Operating Company, L.C. and AKSM, L.C., but amend the amount of the award to $13,475.00, together with legal interest from the date each payment was due up through July 2, 2008. We affirm the trial court's award of damages for past due royalties owed in favor of Preston Andrews and Susan R. Price and against Oleum Operating Company, L.C. and AKSM, L.C., but amend the amount of the award to $27,049.00, together with legal interest from the date each payment was due up through July 2, 2008. We affirm the trial court's denial of penalties and attorney fees to the Suires, the Hallers, and the Prices. Finally, we reverse the trial court's award of damages and judicial interest in favor of the Suires, the Hallers, and the Prices, and against Oleum Operating Company, L.C. and AKSM, L.C., post 2008 Release and New Lease (i.e., July 2, 2008) in the amounts of $868,872.43, $175,806.00, and $175,808.00 respectively.
The costs of this appeal are assessed one-half to Plaintiffs, Jerry J. Suire and Antonia G. Suire; Plaintiff in Reconvention, J & J Onshore Production, Inc.; and, Intervenors, Preston Andrews Price and Susan R. Price and Steven Haller and Paula Haller — and one-half to Defendants, Oleum Operating Company, L.C. and AKSM, L.C.
GENOVESE, Judge.
Considering the applications for rehearing by Plaintiffs, Jerry J. and Antonia G. Suire and J & J Onshore Production, Inc., and Intervenors, Preston A. Price and Susan R. Price and Steven Haller and Paula Haller, we grant this rehearing limited solely to the issues of the award of legal interest on past due royalties owed and a remand of the matter to the trial court for further proceedings.
In our original opinion, we affirmed the judgment of the trial court awarding Plaintiffs, Jerry J. and Antonia G. Suire and J & J Onshore Production, Inc., damages for past due royalties owed. Similarly, we affirmed, as amended, the judgment of the trial court awarding Intervenors, Preston A. Price and Susan R. Price and Steven Haller and Paula Haller, damages for past due royalties owed. However, the opinion of this court improvidently modified the trial court's calculation of legal interest
The second issue raised on rehearing concerns the absence of an express remand despite this court's determination that "Sweet Lake is a party needed for just adjudication pursuant to La.Code Civ.P. art. 641[.]" Finding remand to be appropriate, on rehearing, we supplement our prior disposition of this matter by ordering a remand of the matter to the trial court for further proceedings.
Therefore, on rehearing, we hereby amend and supplement our prior disposition of this matter as follows:
Based on the foregoing, we affirm the trial court's damage award of $283,282.79 for past due royalties owed in favor of Jerry J. and Antonia G. Suire and against Oleum Operating Company, L.C. and AKSM, L.C., together with legal interest from the date each payment was due until paid. We affirm the trial court's award of damages for past due royalties owed in favor of Steven Haller and against Oleum Operating Company, L.C. and AKSM, L.C., but amend the amount of the award to $13,475.00, together with legal interest from the date each payment was due until paid. We affirm the trial court's award of damages for past due royalties owed in favor of Paula Haller and against Oleum Operating Company, L.C. and AKSM, L.C., but amend the amount of the award to $13,475.00, together with legal interest from the date each payment was due until paid. We affirm the trial court's award of damages for past due royalties owed in favor of Preston A. Price and Susan R. Price and against Oleum Operating Company, L.C. and AKSM, L.C., but amend the amount of the award to $27,049.00, together with legal interest from the date each payment was due until paid. Finally, we remand this matter to the trial court for further proceedings consistent with this opinion. All other aspects of our original judgment remain in full force and effect as stated therein.
Therefore, the difference, $175,806.00, is actually the second element of damages that the trial court awarded to the Hallers.
