pjc-oil-and-gas-2022-lib

PJC 313.11

D AMAGES

Regarding other deductions from market value that may be allowable for a good faith trespasser, the Texas Supreme Court has analogized to cotenancy accounting rules, which permit the producing cotenant to deduct “necessary and reasonable costs of production and marketing.” Sheppard , 282 S.W.3d at 426 (citing Byrom v. Pendley , 717 S.W.2d 602 (Tex. 1986)); see also White v. Smyth , 214 S.W.2d 967 (Tex. 1948) (upholding operating cotenant’s right to deduct “payrolls, salaries, depreciation, repairs, insurance, commissions” as well as reasonable compensation for operator’s personal services).

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