HANNA OIL AND GAS CO. v. TAYLOR

No. 88-144.

759 S.W.2d 563 (1988)

297 Ark. 80

HANNA OIL AND GAS COMPANY, Appellant, v. David Patton TAYLOR, Appellee.

Supreme Court of Arkansas.

November 14, 1988.


Attorney(s) appearing for the Case

Dorsey Ryan, Fort Smith, for appellant.

Michael G. Thompson, M. Gayle Corley, Little Rock, for appellee.


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...

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