31 Jan 2014
SHELL (PETROLEUM MINING) COMPANY LTD & ANOR v VECTOR GAS CONTRACTS LTD [2014] NZHC 31
- Citation
- [2014] NZHC 31
- Court
- High Court
Appeal dismissed. The KGC and the 1997 sealed orders must be read as dividing the raw gas reserves equally prior to treatment; liquids removed by Buyer are not part of the Buyer's 50% allocation but Buyer is obliged under Order 27 to compensate Sellers for the energy shrinkage produced by treatment. Post‑contractual conduct was equivocal and not determinative. The Processing Fee Award (PFA) had implicitly used a 15% notional shrinkage as an essential step in fixing the processing fee and that assumption is binding for the related reserves allocation/quantum calculation. The price for shrinkag…