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Tag Archives: Royalty

West Virginia Supreme Court of Appeals Holds Certain Lessees May Deduct Post-Production Costs

Posted in Energy
On Friday, May 26, 2017, the West Virginia Supreme Court of Appeals released its decision in Patrick D. Leggett, et al. v. EQT Production Company, et al. and held that lessees subject to West Virginia Code § 22-6-8 may deduct post-production costs actually incurred from the lessor’s royalty.  The reasonableness of post-production expenses, however, is a question of fact.… Continue Reading

PA: Landowner Royalties Exceed $1B

Posted in Energy
The Houston Chronicle is reporting that landowner royalties in Pennsylvania alone could exceed $1 billion in 2012:  "In Pennsylvania alone, royalty payments could top $1.2 billion for 2012, according to an Associated Press analysis that looked at state tax information, production records and estimates from the National Association of Royalty Owners. *** For some landowners,… Continue Reading

Who’s Entitled to Royalties?

Posted in Energy
That’s the question raised in this article by the WSJ:  "As energy companies race to lock up every available oil-producing acre, the state of North Dakota has been leasing mineral rights to the land beneath and along the river. Now, landowners say they deserve a share of the tens of millions of dollars in proceeds,… Continue Reading

Tawney Stopped at the Ohio Border

Posted in Energy
Building on the royalty-interest owners’ success in Estate of Garrison G. Tawney v. Columbia Natural Resources, LLC (West Virginia), plaintiffs filed a nearly-identical suit in Ohio asserting class-action claims for the deliberate and fraudulent underpayment of natural gas royalties by CNR and its successors.  See Lutz v. Chesapeake Appalachia, LLC, Case No. 4:09CV2256 (United States District Court, Northern… Continue Reading

PA Royalty Decision

Posted in Energy
The Pennsylvania Supreme Court recently upheld the lower court’s decision in Kilmer v. Elexco Land Services, Inc., Docket No. 63-MAP-2009, which found that the net-back method for calculating natural gas royalties did not violate the state’s Guaranteed Minimum Royalty Act (GMRA) (which requires that leases guarantee a landowner-lessor at least a 1/8th royalty).  See here… Continue Reading

ND Royalty Opinion

Posted in Energy
The North Dakota Supreme Court held this week that deductions for natural gas processing of sour gas made by Petro-Hunt, LLC, were properly deducted from royalty payments in Bice v. Petro-Hunt, L.L.C. (Case No. 20080265).  The leases at issue paid royalties based on the market-value of the gas "at the well," and the court found… Continue Reading

Deepwater Lease Royalty Case

Posted in Energy
The U.S. Court of Appeals for the Fifth Circuit recently upheld a lower court decision finding that the federal government could not collect royalties on certain deepwater leases held by Anadarko in the Gulf of Mexico.  The issue involved whether the Department of Interior had the authority to suspend royalty relief established by Congress under the… Continue Reading

Devon Loses Appeal

Posted in Energy
In Devon Energy Corp. v. Kempthorne, Devon challenged an order of the Department of the Interior requiring it to retroactively recalculate royalties owed to the United States under a coalbed methane lease in Wyoming’s Powder River Basin.  At issue were certain deductions taken by Devon for compression and dehydration-related costs when calculating royalties under the agency’s marketable… Continue Reading