Oil & Gas, Postproduction Costs

Texas Royalty Owner Bears Postproduction Costs on Gas Sold at the Wellhead

Gray Reed on 8/27/2025

City of Crowley v. TotalEnergies E&P USA, is a post-production cost (PPC) case with a predictable result. The Fort Worth Court of Appeals confirmed its reasoning in Shirlaine W. Props. Ltd. v. Jamestown Res., L.L.C from 2021,...more

Another Louisiana Post-production Cost Case … and More

Gray Reed on 7/18/2025

Dow Construction, LLC v. BPX Operating Company resolved a bundle of issues arising out of a drilling unit established by the Louisiana Commissioner of Conservation: who has the right to a drilling cost report, the operator’s...more

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

McGinnis Lochridge on 5/8/2025

A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more

Ohio Court of Appeal Addresses Whether Gathering and Transportation Are Separate and Distinct Post-Production Activities

Houston Harbaugh, P.C. on 12/20/2024

As we approach the 20th anniversary of the Marcellus Shale play, one issue remains constant: the ongoing debate over the deduction of post-production costs. Landowners all across Pennsylvania have spent countless hours...more

Texas Appellate Court Rules That ‘Free of Cost’ Clause In 1960 Deed Prohibits The Deduction of Post-Production Costs

Houston Harbaugh, P.C. on 12/6/2024

Let’s assume you own a 135 acre farm in Tioga County, Pennsylvania. In 2020, you negotiate a new oil and gas lease with XYZ Drilling Company. During the negotiations, you insist on a cost free, no deduction royalty of 17%. ...more

West Virginia Appellate Court Rules That Estate Misconception Theory Did Not Apply To 1902 Deed

Houston Harbaugh, P.C. on 2/1/2024

The calculation of production royalties and the deduction of post-production costs remains a troubling issue for Pennsylvania landowners. But there is another frustrating and often confusing royalty-related issue which can,...more

Federal Court In Ohio Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on 9/26/2023

Let’s assume you own 95 acres in Greene County, Pennsylvania. In 2019, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

Federal Appeals Court Rules That Driller Must Establish Marketability of Each Gas Product under Market Enhancement Clause

Houston Harbaugh, P.C. on 1/13/2023

Many Pennsylvania oil and gas leases have what is commonly known as a “market enhancement” royalty clause (“MEC”). These MEC leases typically prohibit the deduction of any post-production costs that are incurred transforming...more

Oil & Gas › Postproduction Costs

Texas Royalty Owner Bears Postproduction Costs on Gas Sold at the Wellhead

Another Louisiana Post-production Cost Case … and More

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

Ohio Court of Appeal Addresses Whether Gathering and Transportation Are Separate and Distinct Post-Production Activities

Texas Appellate Court Rules That ‘Free of Cost’ Clause In 1960 Deed Prohibits The Deduction of Post-Production Costs

West Virginia Appellate Court Rules That Estate Misconception Theory Did Not Apply To 1902 Deed

Federal Court In Ohio Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Federal Appeals Court Rules That Driller Must Establish Marketability of Each Gas Product under Market Enhancement Clause

Pennsylvania Superior Court Rules that Royalty Clause Referencing Both ‘Gross Proceeds’ and ‘At the Well’ Was Ambiguous

Are Your Royalties Going Up in Flames?

Texas Supreme Court Weighs in on Post-Production Costs

Prohibition of Post-Production Expenses on Flat Rate Royalty Leases in West Virginia

Ohio Supreme Court Rules in Landowner Royalty Case

Oil & Gas › Postproduction Costs

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