By Ilya Batikov on Posted in EnergyOn May 21, 2020, the Sixth Circuit Court of Appeals ruled for a lessee in an oil and gas lease dispute, finding that the lessee properly considered post-production costs when calculating the landowners’ royalties. See Henceroth v. Chesapeake Exploration, LLC, 6th Cir. No. 19-3942. The lessee, Chesapeake Exploration (Chesapeake), produced oil and gas from the… Continue Reading
By Ilya Batikov on Posted in EnergyIn a decision released yesterday, the United States District Court for the Northern District of Ohio concluded that Ohio would adopt the “at the well” rule regarding the deduction of post-production costs, the first time the issue has been squarely addressed under Ohio law. Lutz v. Chesapeake Appalachia, L.L.C., N.D.Ohio No. 4:09-cv-2256 (Oct. 25, 2017).… Continue Reading
By Ilya Batikov on Posted in EnergyOn August 24, 2017, the United States District Court for the Northern District of West Virginia granted summary judgment to producers in a class action lawsuit concerning the deduction of flat-rate post-production costs. In Kinney v. CNX Gas Company, LLC, et al., the parties’ leases provided that the lessors would receive a percentage of the… Continue Reading
By Ilya Batikov on Posted in EnergyIn companion decisions released on August 20, 2015, the Supreme Court of Kentucky confirmed that Kentucky follows the “at the well” rule with respect to post-production costs, but held that the payment of severance taxes must be borne solely by the producer. In Baker v. Magnum Hunter Prod., Inc., the Court affirmed the lower court’s… Continue Reading
