Mobil Oil Exploration & Producing Southeast, Inc. v. United States

Summary

Oil companies sought restitution of $156 million bonus payments after Government denied permit approvals under new statute (OBPA) conflicting with OCSLA incorporated in leases. Court held Government breached and repudiated contracts by suspending approvals beyond OCSLA's 30-day limit, entitling companies to restitution regardless of financial gain. Justice Stevens dissented, arguing the breach was not material and damages, not restitution, were appropriate given State objections.