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LINDAUER v. WILLIAMS PRODUCTION RMT CO.

Court of Appeals No. 14CA2502.

381 P.3d 378 (2016)

2016 COA 39

Ivo LINDAUER; Sidney Lindauer; Ruth Lindauer; and Diamond Minerals, LLC, on behalf of themselves and all others similarly situated, Plaintiffs-Appellees, v. WILLIAMS PRODUCTION RMT COMPANY, n/k/a WPX Energy Rocky Mountain, LLC, Defendant-Appellant.

Colorado Court of Appeals, Div. VII.

Announced March 10, 2016.

Attorney(s) appearing for the Case

Dufford, Waldeck, Milburn & Krohn, LLP, Nathan A. Keever , Grand Junction, Colorado, for Plaintiffs-Appellees.

Holland & Hart LLP, John F. Shepherd , Christopher A. Chrisman , Denver, Colorado, for Defendant-Appellant.

Opinion by JUDGE RICHMAN

¶ 1 This case raises two undecided questions of Colorado law regarding the payment of royalties to lessors of oil and gas leases. First, must costs incurred to transport natural gas to markets beyond the first commercial market "enhance" the value of that gas, such that actual royalty revenues increase, in order to be deductible from royalty payments? Second, if the enhancement test applies to such transportation costs,...

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