Martin Booher, Michael Meuti, Kendall Kash Article Examines Ruling in Oil, Gas Lease Dispute

Articles / February 12, 2018

Partners Martin Booher and Michael Meuti and Associate Kendall Kash authored an article that was published Feb. 9, 2018, by Law360. The article, “How Courts are Clarifying Ohio Law on Gas Royalties,” is a discussion of the recent decision by the U.S. District Court for the Northern District of Ohio in Lutz et al v. Chesapeake Appalachia LLC, a putative class-action case addressing leases with language commonly found in oil-and-gas leases valuing the price of royalties at the well.

The District Court ruled that Ohio follows the “netback” method for calculating royalties when a contract sets the value “at the well,” permitting gas companies to deduct fees from the royalties they pay to lessors. Booher, Meuti, and Kash discuss the Lutz ruling concluding: “[B]oth landowners and gas producers should carefully review the language in oil and gas leases because the express intent of the parties, demonstrated through the particular words used in a lease, will carry great weight with courts when interpreting oil and gas leases.”

Read the article (registration required).

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