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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. Kachina utilized its pipeline to transport gas it purchased to Davis Gas Processing’s Plant (“Davis Plant”) where it was re-sold. Factual Background Kachina Pipeline Company, Inc. emphasis by Court).

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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 [.]” BlueStone Nat. the use of gas.

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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 [.]” BlueStone Nat. the use of gas.

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 [.]” BlueStone Nat. the use of gas.

Royalty 40