Texas Supreme Court Takes Up Chesapeake Gas Royalty Feud

Law360, New Orleans (January 30, 2015, 9:18 PM EST) -- The Texas Supreme Court on Friday agreed to hear a case over whether gas post-production costs may be deducted from royalties, in a lawsuit against Chesapeake Exploration LLC for allegedly underpaying royalties to a landowner’s estate.

In March the Fourth Court of Appeals affirmed a $1 million trial verdict for the lease owners, who claimed their contract barred Chesapeake from deducting post-production costs and expenses. Siding with the estate of Elton M. Hyder, the appellate court said that while overriding royalties are normally subject to post-production...
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