On February 15, 2023, the Pennsylvania Supreme Court agreed to hear the appeal of PennEnergy Resources, LLC in the Dressler Family, LP v. PennEnergy Resources, LLC matter. The Pennsylvania Supreme Court’s review of this...more
Many Pennsylvania landowners have leases with “market enhancement” royalty clauses. These clauses typically prohibit the deduction of any post-production costs that are incurred transforming the gas into marketable form. Once...more
Deducting fuel costs from landowner royalties continues to be an ongoing and widespread practice. Not only are landowners denied a royalty on the fuel gas volume, but they are also having that same “cost” deducted from their...more
10/19/2022
/ Appellate Courts ,
Gas Royalties ,
Land Owners ,
Leaseholds ,
Mineral Leases ,
Natural Gas ,
Oil & Gas ,
PA Supreme Court ,
Royalties ,
Texas ,
Third-Party
Let’s assume that you own 125 acres in Tioga County. In 2017, you negotiate a new oil and gas lease with XYZ Drilling. During the negotiations, you insist on a “gross royalty” which prohibits the deduction of...more
Let’s assume you own 114 acres in Tioga County Pennsylvania. In 2012, you signed an oil and gas lease with XYZ Drilling. Two years later they drill and complete the MUSKIE #1H Well. The royalty clause in the 2012 lease...more
2/25/2022
/ GMRA ,
Leaseholds ,
Leases ,
Oil & Gas ,
Oil Wells ,
PA Supreme Court ,
Payment-In-Kind ,
Pipelines ,
Postproduction Costs ,
Royalties ,
Well Drilling