Phillips Petroleum Co. v. Ochsner

HUTCHESON, Circuit Judge.

The suit was for royalty on dry sweet gas produced by appellant from lands of appellee in Moore. County, Texas. The claim was: (1) That within the meaning of the lease, “the gas was used off the premises” for light and fuel purposes; (2) that the gas had no market value for such purposes at the well; and (3) that, therefore, lessor was entitled to be paid its “value at the mouth of the well” for light and fuel purposes by resort to, and proof of, all relevant factors. The defense was: (1) that though there was no market at the well for the gas for light and fuel…