Royalties

EQT Suing West Virginia Over Flat-Rate Leases, Royalties

EQT Corp. has filed a lawsuit in federal court arguing that West Virginia’s flat-rate lease statute is unconstitutional. Legislators last month passed a bill prohibiting post-production expenses from being deducted from flat-rate royalties.

April 16, 2018

West Virginia Landowners Ask Supreme Court to Hear NatGas Royalties Case

A group of West Virginia landowners has appealed to the U.S. Supreme Court to review a May opinion by the state’s highest court that found natural gas producers can deduct post-production costs from royalty payments.

September 14, 2017

Brief — Pennsylvania Protest

Roughly 150 protesters were at the Pennsylvania Capitol in Harrisburg on Tuesday for a rally urging lawmakers to pass legislation that would make it difficult for oil and gas companies to deduct post-production costs from royalty checks. Lawmakers have tried but failed for years to pass legislation to clarify the state’s Guaranteed Minimum Royalty Act of 1979, which sets forth the minimum payment to landowners but doesn’t address marketing costs and how they should be factored into royalties. Bradford County, PA, has launched a campaign to pressure lawmakers into passing state HB 1391, which may be considered in October (see Shale Daily,Sept. 9). The industry has fought against the legislation, claiming contractual disputes should be settled in court.

September 28, 2016

Outraged PA Township Limiting NatGas Production, Citing Dwindling Royalties

A small Northeast Pennsylvania township in one of the epicenters of the Marcellus Shale passed a resolution late Tuesday to limit natural gas production because angry landowners contend that some operators are deducting “exorbitantly” high post-production costs from royalty checks.

September 7, 2016
Chamber: Ban on Energy Production from Federal Lands and Waters Would Be Ruinous

Chamber: Ban on Energy Production from Federal Lands and Waters Would Be Ruinous

If policies inspired by “Keep it in the Ground” and other anti-fossil fuel movements lead to a ban on energy production from federal lands and waters, the United States would lose billions in royalties and hundreds of thousands of jobs, according to a report by the U.S. Chamber of Commerce’s Institute for 21st Century Energy.

August 24, 2016

Brief — Chesapeake Settlement

The Fort Worth, TX, city council has voted 9-0 to authorize a $15 million settlement with Chesapeake Energy Corp. regarding underpaid natural gas royalties for Barnett Shale volumes. Fort Worth originally had sought $33.5 million in the lawsuit for royalties from more than 260 leases on 5,800 acres of property in Tarrant and Johnson counties. Chesapeake, which has leased land with the city since 2006, agreed to make the full payment by Tuesday (May 31). Going forward, royalty payments for the Barnett gas will be calculated using Houston Ship Channel prices, without any deductions for post-production costs and expenses. Revenue would be retroactive to April 1, 2016. The city council in March settled a similar lawsuit for $6 million with Chesapeake’s Barnett 25% partner Total E&P USA (see Shale Daily,March 23). Chesapeake and Total also agreed to pay $52.5 million to settle lawsuits with more than 13,000 people owning land in the Barnett, who had claimed they were underpaid royalties for their gas leases (see Shale Daily,May 23).

May 25, 2016

Pennsylvania Water Authority Claims Consol, Noble Wrongfully Deducting Post-Production Fees

A water authority in Southwest Pennsylvania has filed a lawsuit against Consol Energy Inc. and Noble Energy Inc., alleging the operators are wrongfully deducting natural gas post-production costs from royalties and those of private landowners nearby.

April 27, 2016

Pennsylvania Water Authority Claims Consol, Noble Wrongfully Deducting Post-Production Fees

A water authority in Southwest Pennsylvania has filed a lawsuit against Consol Energy Inc. and Noble Energy Inc., alleging the operators are wrongfully deducting natural gas post-production costs from royalties and those of private landowners nearby.

April 27, 2016

Total Agrees to Pay Fort Worth $6M for Underpaying Barnett NatGas Royalties

Total E&P USA agreed to pay $6 million to the city of Fort Worth, TX for underpaying natural gas royalties in the Barnett Shale on leases it co-owns with Chesapeake Energy Corp.

March 23, 2016
Chesapeake Sued For Underpaying Royalties in Eagle Ford

Chesapeake Sued For Underpaying Royalties in Eagle Ford

Chesapeake Energy Corp., which has faced multiple lawsuits across the country regarding alleged royalty underpayments, now is facing allegations that it cheated landowners in the Eagle Ford Shale of South Texas of more than $9.4 million.

March 11, 2016