Colorado Gas Company Fails to Collect More Royalties on Appeal

A Chevron Corp. subsidiary need not pay additional royalties to another gas company stemming from a settlement with one of its service providers, the Tenth Circuit held Tuesday.

According to the opinion, Chevron unit Noble Energy Inc. produces natural gas from land it leases from Phelps Oil and Gas LLC in Colorado, paying royalties to Phelps on 100% of the proceeds from its gas sales under a calculation method that became effective Jan. 1, 2008.

Noble also promised to pay 50% of proceeds retained by providers of post-wellhead services, including Phillips 66 unit DCP Midstream LP, which processes and ...