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IN RE OSYKA CORP.

No. 08-31467.

426 B.R. 653 (2010)

In re OSYKA CORPORATION and Osyka Permian, LLC, Debtor(s).

United States Bankruptcy Court, S.D. Texas, Houston Division.

March 18, 2010.

Attorney(s) appearing for the Case

Andrew E. Jillson, Hunton & Williams LLP, Daniel P. Winikka, Robert J. Jud, Jones Day et al., Dallas, TX, H. Rey Stroube, III, Attorney at Law, Houston, TX, for Debtors.

MEMORANDUM OPINION

MARVIN ISGUR, Bankruptcy Judge.

This case arises out of a sale of assets and assignment of oil and gas leases ("Sale and Assignment") by Osyka Permian, LLC and Osyka Corporation ("Debtors") to Legado Resources, LLC ("Legado"). The question the Court must resolve is the extent to which the Sale and Assignment was "subject to" Bruce Houff's ("Houff") overriding royalty interest ("ORI"). As set forth below, the Court holds that Debtors...

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