6th Circ. Tosses Gas Royalty Suit, Affirms $29M Deal

Law360, New York (February 17, 2011, 4:16 PM EST) -- The Sixth Circuit ruled Thursday that a company leasing natural gas in Kentucky can deduct certain costs from royalty payments, and rejected objections to a $28.8 million settlement in a similar class action.

The U.S. Court of Appeals for the Sixth Circuit upheld the U.S. District Court for the Eastern District of Kentucky's findings in the cases and rejected the objections of Poplar Creek Development Co., which owns natural gas resources in the region.

At issue for the Sixth Circuit was whether Kentucky law required the...
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