Tags: Civil Litigation
A wellhead measurement determines the volume of the gas produced at the wellhead for the purpose of calculating the amount of the royalty due. See Bowden v. Phillips Petroleum Co., 247 S.W.3d 690, 704 (Tex. 2008). Paragraph 4(B) requires that the royalty be calculated on such a measurement.The royalty is therefore owed on the substance so measured: raw gas, including all of its components.
Land Office of Texas v. Longfellow Ranch