Hanna Oil and Gas Co. v. Taylor

Robert H. Dudley, Justice.

The sole issue presented by this appeal is whether appellant, Hanna Oil and Gas Company, is entitled to deduct a pro rata share of its compression costs from appellee’s, David Taylor’s, royalties. The chancellor held that appellant was not entitled to deduct the costs. We affirm.. In 1975, appellee, David Taylor, entered into an oil and gas lease with appellant, Hanna Oil and Gas Company. The leased land was pooled with other land to form a production unit. In 1976, appellant completed a producing natural gas well. Gas from the well was sold to Arkansas Louisiana Gas…