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Texas Supreme Court Update: The Court Decides Issue of First Impression Related to the Scope of an Oil and Gas Lease’s

The Energy Law

By way of background, the lessor royalty owners originally entered into a form lease agreement in 2003; the lease provided that royalty payments were based on “the market value at the well.” produced from said land in all operations which Lessee may conduct hereunder [.]” Burlington Resources Oil & Gas Co., 3d 198, 211 (Tex.

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Texas Supreme Court Update: The Court Decides Issue of First Impression Related to the Scope of an Oil and Gas Lease’s Free-Use Clause and Further Interprets Conflicting Royalty Clause Provisions

The Energy Law

By way of background, the lessor royalty owners originally entered into a form lease agreement in 2003; the lease provided that royalty payments were based on “the market value at the well.” produced from said land in all operations which Lessee may conduct hereunder [.]” Burlington Resources Oil & Gas Co., 3d 198, 211 (Tex.

Royalty 52
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Texas Supreme Court Update: The Court Decides Issue of First Impression Related to the Scope of an Oil and Gas Lease’s Free-Use Clause and Further Interprets Conflicting Royalty Clause Provisions

The Energy Law

By way of background, the lessor royalty owners originally entered into a form lease agreement in 2003; the lease provided that royalty payments were based on “the market value at the well.” produced from said land in all operations which Lessee may conduct hereunder [.]” Burlington Resources Oil & Gas Co., 3d 198, 211 (Tex.

Royalty 40
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Texas Supreme Court Holds Producer Not Required to Share in Natural Gas Pipeline Compression Costs

The Energy Law

Kachina”) operates a natural gas gathering system, as well as a gas pipeline. In 2003, Kachina installed the “Barker Central Compression Station” (“Compression Station”) on its pipeline, which allowed it to resell the gas in the pipeline at its high-pressure inlet, increasing its re-sale value to Davis. emphasis by Court).