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Yetter Coleman Favorably Settles Royalty Dispute Between Texas LNG Companies

Yetter Coleman represented a Texas-based liquefied natural gas processer in a royalty dispute with a competitor, who was also a former investor and partner.  The dispute centered on whether our client was responsible to pay an annual royalty on volumes of LNG produced through liquefaction, in addition to volumes produced by regasifying LNG, and how to allocate a contractually-mandated minimum annual payment.  The potential liability exceeded several hundred million dollars.  At a pre-trial hearing, a Harris County district court granted our client’s summary judgment motion in part and denied the summary judgment motions brought by the competitor, substantially reducing our client’s potential liability, and paving the way for a successful settlement.

George Fibbe led the firm’s efforts, supported by Marc Tabolsky and Bryce Callahan.