Earlier this year, the West Virginia Supreme Court of Appeals issued its first opinion in 11 years on the question of whether post-production costs can be deducted in calculating gas royalties. The Leggett decision marks the first time that the West Virginia court has spoken on royalty calculation since the well-known Tawney decision in 2006. But, West Virginia isn’t the only state that has recently addressed questions about post-production cost deductions. Courts in Ohio, Texas, and Colorado have also addressed this problem.
In this webcast, Andy Graham will review the state of the play in the Appalachian Basin, as well as other oil and gas producing states, on the source of the deduction problem and where the states stand on this notoriously thorny issue. Among the topics for discussion:
- What does the Leggett case mean for West Virginia producers in light of Tawney?
- Why did the Supreme Court of Ohio decide to not decide a case on post-production deductions?
- Has the marketable product rule reached a high-water mark in Colorado?