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

The Energy Law

In 2005, Kachina (the Buyer) and Lillis (the Seller) entered into a new Gas Purchase Agreement (“Agreement”). 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.