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CABOT OIL & GAS CORP. v. FOLLOWILL

No. 02-283.

93 P.3d 238 (2004)

2004 WY 80

CABOT OIL & GAS CORPORATION, a Delaware corporation, Appellant (Defendant), v. Dorman FOLLOWILL, Emil Hecht, Eva Hecht, Eva Oil and Gas, LLC, C. Dennis Irwin, PDI Trust Dated February 23, 1994, Barton Johnson, Everett Johnson, Larry Mizel, Yosemite Creek Oil and Gas, LLC, Marvin Wolf, the Melvin and Elaine Wolf Foundation, INC., and Norita M. Weigand, Appellees (Plaintiffs).

Supreme Court of Wyoming.

July 8, 2004.

Attorney(s) appearing for the Case

Representing Appellant: Thomas F. Reese, Morris R. Massey, and Drake D. Hill of Brown, Drew & Massey, LLP, Casper, Wyoming. Argument by Messrs. Reese and Massey.

Representing Appellee: Dennis N. Carnes and Carolyn J. Mitchell of Kuhn, Carnes, & Anderson, P.C., Denver, Colorado; Nancy D. Freudenthal and John C. McKinley of Davis & Cannon, Cheyenne, Wyoming. Argument by Mr. Carnes.

Before HILL, C.J., and GOLDEN, LEHMAN, and VOIGT, JJ., and JAMES, D.J.

GOLDEN, Justice.

[¶ 1] In response to a complaint disputing royalty payments for natural gas sales from federal oil and gas leases, the federal district court for Wyoming certified questions of law concerning the interpretation of Wyoming statutes governing the Wyoming Royalty Payment Act (Act). The statutes at issue, Wyo. Stat. Ann. § 30-5-301 through § 30-5-305 (LexisNexis 2004), provide that "gathering" costs are "costs of production" and not deductible...

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