Gas Balancing: Accounting; Conversion

摘要

This case involves a gas balancing dispute between Chaparral, a non-operator, and Pioneer, the operator. Chaparral and the operator disagree as to whether the conveyance under which Chaparral acquired its interest transferred to Chaparral the "underproduction" account of the assignor that accrued prior to July 1, 2000. The operator computed the gas imbalance attributable to Chaparral without crediting it with that portion of the underproduction. Chaparral sues the operator for an accounting, in-kind or cash balancing, breach of contract, conversion and violation of the Natural Gas Market Sharing Act ("NGMSA"), 52 O.S. 2001 § § 581.1—581.10. Chaparral asserts that the operator tortiously converted the historic underproduction imbalance of Chaparral when it zeroed-out the imbalance instead of transferring the imbalance from the assignor to Chaparral. The trial court grants summary judgment in favor of the operator as to Chaparral's conversion claim and denies Pioneer's motion for summary disposition as to the NGMSA claim based upon Chaparral's voluntary dismissal of that claim. The trial court also dismisses Chaparral's breach of contract claim based upon its ruling at a hearing not included in the appellate record. After a separate hearing on damages, the trial cpurt rules that the amount of historic imbalance from the subject wells attributable to Chaparral and converted by Pioneer was 6,559 mcf and 19,364 mcf, respectively.