Tag: Gas Royalties

U.S. Supreme Court Asked to Hear W.Va. Gas Case

Landowners have asked the U.S. Supreme Court to review the reversal by West Virginia’s highest court concluding natural gas companies can deduct post-production costs from the royalties paid landowners for mineral rights.

In May, the West Virginia Supreme Court reversed its November ruling in the case after Justice Beth Walker was elected and replaced Justice Brent Benjamin.

In their petition, the landowners say the reversal could have been significant for energy companies in which Walker’s husband owned stock.

The issue is whether Walker therefore should have recused herself from the case.

The state court first ruled 3-2 against deductions by EQT Production Co.

In January, the court agreed 3-2 to rehear the case.

The Charleston Gazette-Mail reports Walker in a May 1 court memo said her husband divested energy stocks.

West Virginia Top Court Reverses Ruling on Gas Royalties

West Virginia’s highest court has reversed its November decision and ruled that natural gas companies can deduct post-production costs from the royalties paid to landowners for mineral rights.

The Supreme Court split 4-1 in its Friday reversal.

At stake is whether landowners or production companies will get more money.

West Virginia gas production is starting to boom.

Chief Justice Allen Loughry writes that the court majority now concludes the intent of state legislators and the West Virginia Code language permits deduction “of reasonable post-production expenses actually incurred” by the gas company leasing mineral rights.

The court split 3-2 in its November ruling favoring West Virginia landowners suing EQT Production Co. of Pittsburgh.

A 1982 state law set minimum royalties of 12.5 percent of gas produced at the wellhead.

Gas Company Wants New Ruling on W.Va. Roylaties

A Pittsburgh-based natural gas producer has asked West Virginia’s top court to reconsider its recent ruling that gas companies cannot take deductions for post-production costs from royalty payments to the state’s landowners for mineral rights.

The State Journal reports EQT Production Co. wants the Supreme Court to withdraw its November ruling and rehear the case.

The ruling was requested by the U.S. District Court for the Northern District of West Virginia, where Patrick Leggett and several other mineral rights owners sued EQT, arguing the company was improperly deducting fees from royalty payments.

Leggett owns a farm in Doddridge County where EQT has about 20 wells. He says the company deducted 25 to 30 percent from royalty payments for years.

EQT’s lawyers argue the court misinterpreted state law.

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