Marcia Fuller French v. Occidental Permian Ltd.

One method of enhanced oil recovery is to inject carbon dioxide (C02) into a reservoir to sweep the oil to the production wells. The C02 returns to the surface entrained in casinghead gas produced with the oil. 1 In this case, royalty owners contend that the royalty due on the casing-head gas under the parties’ agreements must be determined as if the injected C02 were not present, and that they are not required to share with the working interest the expense of removing the C02 from the gas. We disagree and therefore affirm the judgment of the court of appeals. 2

I

A

Petitioners, collectively…