Sternberger v. Marathon Oil Co.

How courts have described this case

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

• holding that operator could share with royalty owners costs of transporting gas to off-lease market where market did not exist at the wellhead and operator did not need to further prepare gas for market
• explaining that Kansas applies the marketable product rule and once the marketable product is obtained, “[t]he lessee has the burden of proving the reasonableness of the costs”
• determining that, although expenses in making the product marketable were not deductible, where the gas is marketable at the wellhead, but for the lack of a purchaser at that location, the costs of transportation may be properly deducted
• discussing the necessity of a pipeline to carry gas from the well to the market, as well as the associated transportation costs
• oil and gas leases in Kansas, Texas, and Oklahoma raising issues where Oklahoma and Texas law were in accord with Kansas
• “The lessee has the duty to produce a marketable product, and the lessee alone bears the expense in making the product marketable.”

Source: CourtListener parenthetical corpus (CC0).