Opinion ID: 1777204
Heading Depth: 1
Heading Rank: 9

Heading: Clyde v. Wilmena

Text: The bonus was payable to Wilmena pursuant to the conveyance from Clyde to Wilmena in 1974. She was liable to Clyde for one-fourth (1/4) of the bonus, being the 5% overriding royalty, which she obtained from Launius pursuant to the Wilmena/Launius side-letter agreement. The executive owner's rights are limited by a duty of utmost good faith and fair dealing. Wilmena breached that duty and concealed the bonus. She sold and disposed of her 5% overriding royalty and did not give Clyde his share. Clyde, therefore, is entitled to one-fourth (1/4) of the 5% overriding royalty, and the production obtained from that 5% overriding royalty from January 14, 1983, the date Wilmena acquired the overriding royalty. Clyde further is entitled to one-fourth (1/4) of one-half (1/2) of the 3% working interest, less production costs, retained by Launius pursuant to the farmout agreement from Coquina. That working interest will be figured from July 7, 1983, the last date before his death that Launius could have transferred to Wilmena one-half (1/2) of the 3% working interest.