Davis v. Devon Energy Corp.

OPINION

CHÁVEZ, Chief Justice.

{1} In these consolidated class actions, Plaintiff royalty owners allege on behalf of themselves and those similarly situated that Defendant gas producers have improperly deducted from Plaintiffs’ royalty payments the costs of making coalbed methane (CBM) gas “marketable.” Plaintiffs claim that despite the differing language in the various royalty agreements, Defendants in every case have breached an implied covenant prohibiting Defendants from deducting the costs of gathering, treating, and otherwise making the CBM gas marketable once it has been produced.

{2}…