By Robert J. Burnett and Brendan A. O’ Donnell Many oil and gas leases in Pennsylvania contain a royalty clause known as a “market enhancement” clause. These clauses generally prohibit deductions unless the driller can demonstrate certain conditions. Drillers,...
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Oil And Gas
The New Royalty Bill is Good for Pennsylvania Landowners
By Robert J. Burnett and Brendan A. O’Donnell On August 5, 2021, Rep. Eric Davanzo (R-Westmorland County) introduced HB 1763. The bill seeks to clarify Pennsylvania oil and gas law by defining the term “royalty”. It is important to emphasize that HB 1763 does not...
Is Your Driller Really Enhancing the Value of Your Gas?
By Robert J. Burnett and Brendan A. O’Donnell Many Pennsylvania oil and gas leases have what is commonly known as a “market enhancement” royalty clause. These clauses typically prohibit the deduction of any post-production costs that are incurred transforming the raw...
Texas Appellate Court Rules that Lease Terminated Due to Twelve Months of Non-Production
By Robert J. Burnett The modern producing gas well is a sophisticated and complex piece of equipment. The basic well head itself consists of several meters, valves and other components, each of which is under constant stress and pressure. In addition to the well head,...
Pennsylvania Supreme Court Issues Confusing and Troubling Decision for Landowners
By: Robert J. Burnett and Brendan A. O’Donnell In 2019, the Pennsylvania Superior Court issued a landmark decision in the SLT Holdings, LLC v. Mitch-Well Energy Inc, 217 A. 3d 1258 (Pa. Super. Ct. 2019) matter. The Superior Court affirmed the trial court’s decision in...
Federal District Court Injects Confusion into Definition of Gross Royalty Under Pennsylvania Law
By Robert J. Burnett As the Marcellus Shale development enters its seventeenth year, drillers are becoming more creative and aggressive in their effort to avoid lease language that was intended to prohibit or restrict the deduction of post-production costs. Many...
Ohio Appellate Court Issues Troubling Decision for Landowners and Drillers
By Robert J. Burnett Joint ownership of oil and gas rights is fairly routine here in Pennsylvania. But what happens when one co-tenant unilaterally signs an oil and gas lease without informing the others? Does that co-tenant have superior rights? Perhaps. Let’s...
Are February 2021 Production Royalty Payments Leaving you Out in the Cold?
By Brendan A. O'Donnell & Robert J. Burnett On March 8, 2021, the Pennsylvania Attorney General announced a settlement of the lawsuit filed against Chesapeake Energy Corporation that challenged several of Chesapeake’s business practices. One of the announced...
Texas Supreme Court Rules That Gross Royalty Clause Prohibits Driller From Deducting Post-Production Costs
By Robert J. Burnett As the Marcellus Shale development enters its seventeenth year, drillers are becoming more creative and aggressive in their effort to avoid express lease language that was drafted to prohibit or restrict the deduction of post-production costs....
Is Your Driller Trying to Re-Write History?
By Robert J. Burnett, Esquire and Brendan A. O’Donnell, Esquire Time travel. The idea of traveling back in time has been a fascinating part of popular culture for over a hundred years. From H.G. Wells’ classic novella The Time Machine in 1895 to Huey Lewis & the...
