Phillips Petroleum Co. v. Bynum

WALLER, Circuit Judge.

This is another case involving the price that should be paid the royalty owner for gas taken from a well in the Panhandle Field of Texas. The royalty provisions in Plaintiffs’ contract1 are identical with those construed in Shamrock Oil & Gas Corporation v. Coffee, 5 Cir., 140 F.2d 409. The only substantial difference between this and the Shamrock case is that in the latter it was admitted that there existed in the field a market price for the gas, while in the present case the plaintiffs say, and insist that they have proven, that no market price for their gas had ever…