Burlington Resources Oil & Gas Company Lp v. Texas Crude Energy, LLC and Amber Harvest, Llc

Amber Harvest, an affiliate of Texas Crude Energy, owns overriding royalty interests in oil and gas leases operated by Burlington Resources. For several years, Burlington made royalty payments only after charging the royalty holder its proportionate share of the post-production costs expended to bring the products from the wells to the point of sale. Texas Crude later sued Burlington, alleging that the parties' contracts prohibit Burlington from charging post-production costs to the royalty holder. Burlington contends that the contracts require the royalty holder to bear its share of…