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

The Energy Law

Michael Lillis (“Lillis”) was one of the producers who sold natural gas to Kachina, dating back to 2001. Kachina utilized its pipeline to transport gas it purchased to Davis Gas Processing’s Plant (“Davis Plant”) where it was re-sold. In 2005, Kachina (the Buyer) and Lillis (the Seller) entered into a new Gas Purchase Agreement (“Agreement”).