Phillips Petroleum Co. v. Johnson

When gas was brought in on the property of the plaintiff the defendant laid pipes to the well and commingled the gas in the pipes with the gas from many other wells in the Panhandle Gas Field, and conveyed it through the pipes to distant points where it was partly used and partly sold, after certain treatment of the raw gas. That is, the defendant used a part of the raw gas by certain treatment and thereafter it sold the residue for different and other purposes. The evidence leads to the conclusion that it was the refuse which was sold.

That part of the lease contract which is important here…