I haven't checked myself, but wanted to ask. Are you sure you're not confusing PTSC expenses and PDS expenses? I would think PTSC's expenses include those required for the Fish & Gifforn settlements, as well as other legal issues PTSC is dealing with. PDS expenses come off the revenues that PTSC/TPL split prior to figuring the split.
So, again since I haven't looked for it, I'm not sure, but I doubt the 10q paragraph you're referring to has to do with PDS expenses, and I'd suspect those expenses have plenty of legal fees included that deal with licensing and settlement with the J's. I'll try to confirm this later today but perhaps others can comment/help.