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Brief on Post Production Costs in Ohio

Started this discussion. Last reply by 0ym9x5ag7ury2 Oct 2, 2015. 16 Replies

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…Continue

Tags: in, Ohio, Costs, Production, of

Older Ohio Royalty Clauses

Started this discussion. Last reply by Robert Sanders May 8, 2015. 6 Replies

Most new leases either expressly allow for the deduction of costs either by listing the costs to be deducted or by providing for a royalty on the "net proceeds." Does anyone have one of the older…Continue

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D.C. Harris replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"Ron Hale posted this in April 2015 on gohaynesvilleshale.com: "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…"
Sep 29, 2015
Utica Watcher replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"Agree that is pretty damning.  Which CHK VP said that?  And do you know when specifically it was said?  Earnings call? I'd like to hear or read the transcripts from that call, because that is bad."
Sep 28, 2015
Robert Sanders replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"I've seen that quote from the CHK V.P. before. It really says it all! Reminds me of some automakers who, when deciding whether to use a more expensive, but safer component, run the following math: increased cost of the safer component v.…"
Sep 28, 2015
Robert Sanders replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"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…"
Sep 28, 2015
clair white replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"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…"
Sep 28, 2015
William G. Williams replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"Ron:  our law firm also filed a Brief with the Supreme Court in the Lutz case to protect all Lessors who signed a Krugliak/Williams Group lease.  I remember you being in one of our Groups.  All Group members will be receiving…"
Sep 27, 2015
Robert Sanders replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"Will do."
Sep 26, 2015
Nancy Mosley replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"Yes I saw some odd things. And, true that it can be challenging but yours was written in a way that a layman with some familiarity with the topic can follow it. Maybe could you post a corrected version when available? And please keep us posted on…"
Sep 26, 2015
Robert Sanders replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"Thanks Nancy. Reading legal briefs can be arduous. There are a few glitches in the version I posted (such as some lines of text that shouldn't be there). We will be filing a corrected version with the court."
Sep 26, 2015
Nancy Mosley replied to Robert Sanders's discussion 'Brief on Post Production Costs in Ohio'
"i just took the time to read the brief. Thank you very much for posting this. Very important topic."
Sep 26, 2015
Robert Sanders commented on Keith Mauck (Site Publisher)'s group 'Ohio Landowners'
"I posted a brief that I filed yesterday in the Ohio Supreme Court on the GoMarcellus but I'm not sure that this means it was also posted on this Ohio site. The brief is on the subject of the deduction of expenses on gas royalties. Would…"
Sep 23, 2015
G.H. replied to Robert Sanders's discussion 'Brief by Robert C. Sanders on Post Production Costs in Ohio'
"I like your position.  :) Thanks for posting."
Sep 23, 2015
Robert Sanders replied to Robert Sanders's discussion 'Brief by Robert C. Sanders on Post Production Costs in Ohio'
"No Cliff Notes available, Eric. The short version (if you don't want to wade through the brief) is this: We argue that gas producers sign a lease they make an implied covenant (promise) to market the gas -- which means they have…"
Sep 23, 2015
Eric replied to Robert Sanders's discussion 'Brief by Robert C. Sanders on Post Production Costs in Ohio'
"how about some cliff notes.."
Sep 23, 2015
Robert Sanders posted a discussion

Brief by Robert C. Sanders on Post Production Costs in Ohio

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…See More
Sep 23, 2015
Robert Sanders and Jim White are now friends
May 19, 2015

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Introduce Yourself
I am a lawyer who handles gas royalty cases on behalf of landowners. I recently won a $1M jury verdict for a class of 1,000 landowners against Energy Corp. of America in federal court in Pittsburgh and have three other active gas royalty cases (against Chesapeake, Atlas, CNX). I am joining not to drum up business, but to get help in locating lease forms used by various gas producers in Ohio.
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Which state(s) are you following?
Ohio
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All Shale Plays

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