Texas Justices To Weigh If Bluestone Underpaid Gas Royalties

By Morgan Conley (September 24, 2021, 6:15 PM EDT) -- The Texas Supreme Court on Friday agreed to review a Barnett Shale mineral interest owner's dispute with BlueStone Natural Resources that challenges whether the company is allowed to reduce royalties to account for costs incurred transporting gas via a gathering system.

The justices will consider Nettye Engler Energy LP's challenge of a ruling that BlueStone Natural Resources II LLC can deduct the costs of transporting gas via a third party's gathering system from Engler's royalty payments. Engler's interest in the 645 acre tract of land in Tarrant County was reserved under the terms of a 1986 deed through which Engler's predecessors...

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