Schroeder v. Terra Energy, Ltd.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• finding that 33 (4:15CV2449) leases using “at the wellhead” language must permit deduction of post-production costs to give effect to the language in the contract between the parties
• noting that “natural gas is not typically sold at the wellhead”
• noting rule in J.J. Fagan, but construing ambiguity in favor of the Defendant-lessee in part “because it better conforms to the parties’ intent as gleaned from the contractual language.”
• adopting the “at the well” rule because it “better conforms with the parties’ intent”
• “gross proceeds at the wellhead” contemplates the deduction of post-production costs from the sale price of the gas, based on the view that “at the wellhead” refers to location for royalty valuation purposes
• “ ‘At the well’ refers to proceeds minus refining and transportation costs, as opposed to proceeds at the point of sale, where refining and transportation costs are not deducted”

Source: CourtListener parenthetical corpus (CC0).