Greetings. The Ohio Supreme Court has accepted a question of state law from a federal judge in Ohio in the gas royalty case of Lutz v. Chesapeake Appalachia LLC. The question is whether post production costs may be deducted from gas royalties when the lease does not expressly address how they are to be paid. Gas producing states are fairly evenly split on this issue. Attached for your information is the 27 page brief that I wrote on behalf of the landowners in the Lutz case. My Ohio co-counsel filed this brief yesterday in the Ohio Supreme Court.

Best regards to all,

Robert C. Sanders.

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Ron Hale posted this in April 2015 on

"In the Appalachian Basin, the Chesapeake VP for this area gave us a quote in the September 2013 Farm & Dairy paper:  'It's a good business practice to not pay landowners royalties then go to court and only pay what the judge orders.'"


    Find a copy of Farm & Dairy September 12th 2013, a reprint of Unfair Share a story about Don Feusner the Dairy Farmer being taken by CHK that appeared in the Aug 13, 2013

The person who made the quote was the CHK NE VP for the Utica & Marcellus shale plays, which was quoted by Farm & Dairy from a newspaper in PA. That quote wasn't available when the propublica story ran, so it does not appear in the Aug 13th story.

I'm sure you'll see this quote used against your company from time to time, which is why I kept the background of where it came from.

Brief was fairly persuasive until I got to the section at page 14 arguing about the qualifications of an expert concerning airbags?  What the ....?

Makes the rest of the brief suspect, and likely will require the court to vette every citation very carefully, for fear of similar errors.

Yes, that glitch occurred as we were running up to the deadline. It certainly needs correcting. We have filed a motion to file a substitute brief and, if that motion is granted, will be file the substitute. Thank you for your interest and attention. Robert


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