During the course of the court proceedings Phillips had admitted that it engaged in the sale of natural gas in interstate commerce by marketing casinghead gas derived from its oil production activities, and by purchasing gas from smaller producers for resale.
Natural gas came from a variety of sources including old or "flowing" wells, new land-based wells, casinghead gas, and increasingly, offshore fields.
casinghead gas could be claimed by the oil owners under Borys.
the production of oil (i.e., casinghead gas) could be claimed by the oil
It is estimated that this district accumulated approximately 2.78 TCF of casinghead gas
. During the year 2000, District 7B made 14.1 Million barrels of oil, 18.6 BCF of casinghead gas
and 45.3 BCF of unassociated gas.