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Texas Supreme Court Holds Producer Not Required to Share in Natural Gas Pipeline Compression Costs

The Energy Law Blog

Michael Lillis (“Lillis”) was one of the producers who sold natural gas to Kachina, dating back to 2001. If Lillis’ wells failed to do so, then the Agreement provided Kachina with two options: “[i]t may do nothing, in which case the well will be released from the Agreement. Chief Justice Hecht also echoed this point in his dissent.