Energy & Environmental Law Blog

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Tag Archives: Royalties

Sixth Circuit Rules for Producer in Royalty Dispute

Posted in Energy
On 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

Federal Court Rejects Class Action Alleging Improper Deduction of Post-Production Costs

Posted in Energy
On 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

Ohio Court Elaborates on Paying Quantities Test

Posted in Energy
On June 16, 2017, Ohio’s Seventh District Court of Appeals issued its decision in Paulus v. Beck Energy Corp. 2017-Ohio-5716, which addresses a number of issues concerning Ohio’s standard for determining whether an oil and gas lease is producing in “paying quantities,” a test that must ordinarily be met in order to continue a lease during its… Continue Reading