Okla. Jury Sides With Operator In Royalty Deduction Dispute

Law360 (July 11, 2019, 6:53 PM EDT) -- After a two-week trial, an Oklahoma jury has unanimously rejected accusations by 11 oil and gas royalty owners that Range Resources Corp. made improper deductions from its royalty payments, according to a Wednesday judgment confirming the verdict.

The judgment cements a March verdict that cleared the company of allegations it made "sham" transactions to reduce the amount of money it had to pay royalty owners. Well operators typically can't deduct costs incurred to transform the raw gas into a so-called marketable product. The royalty owners accused the company of making deductions from their royalty payments before the gas at issue had...

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