Landowner Royalties
Shale Law Weekly Review—Week of April 15, 2024
National Energy Policy: USDA Funds Clean Energy Projects for PA Farmers and Rural Businesses ⚡
On March 28, 2024, the U.S. Department of Agriculture (USDA) announced it will be investing $5.69 million in 31 energy efficiency and renewable energy projects across 12 Pennsylvania counties. This investment is part of the March announcement of $120 million in Inflation Reduction Funds being allocated across 44 states through the Rural Energy for America Program (REAP). The USDA stated that selected REAP projects help farmers and rural business owners “lower energy costs, generate new income and create jobs” by utilizing clean energy and increasing […]
Shale Law Weekly Review—Week of February 5, 2024
Oil and Gas Leasing: BOEM Publishes Final Procedures for Bid Adequacy in Lease Sales ⚡
On Monday, January 22, 2024, the Bureau of Ocean Energy Management (BOEM) published final revisions to the bid adequacy procedures for offshore oil and gas lease sales. The final procedures yielded no significant changes from the proposed revisions that were published and available for comment in the Federal Register in January 2023. BOEM states that these revisions will simplify bid adequacy determinations by eliminating steps in the existing process, including tract classification. This methodology update evaluates a tract’s fair market value and uses that to […]
Shale Law Weekly Review—Week of November 13, 2023
GHG Emissions: PA Commonwealth Court Finds State Membership in Carbon Emissions Trading Alliance Illegal ⚡
On Wednesday, November 1, 2023, the Commonwealth Court of Pennsylvania granted a request for declaratory and injunctive relief filed by numerous private companies and individuals in the fossil fuel industry acting as petitioners in a lawsuit against the Pennsylvania Department of Environmental Protection (DEP). Bowfin Keycon Holdings, LLC v. Pennsylvania Department of Environmental Protection (No. 247 M.D. 2022.) The original petition for declaratory and injunctive relief was brought against the DEP for its allegedly illegal participation in a carbon emissions trading alliance known as the […]
Shale Law Weekly Review—Week of October 30, 2023
Pipelines: 4th Circuit Court of Appeals Rules that Maryland Cannot Refuse Pipeline Construction on State Land ⚡
On Wednesday, October 11, 2023, the 4th Circuit Court of Appeals affirmed the district court’s decision to dismiss the State of Maryland’s case against Columbia Gas Transmission, LLC. Columbia Gas Transmission, LLC v. 0.12 Acres of Land, More or Less, in Washington, (No. 23-1069). The lower court held that Maryland cannot assert sovereign immunity as grounds to refuse a conveyance of land for the construction of a pipeline. The district court found that, based on the binding precedent in PennEast Pipeline Co. […]
Shale Law Weekly Review—Week of October 16, 2023
Offshore Drilling: Bureau of Ocean Energy Management Publish Proposed Final Program for Lease Sales in Gulf of Mexico ⚡
On October 2, 2023, Bureau of Ocean Energy Management (BOEM), DOI, published a Notice of Availability for the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Proposed Final Program (PFP) and Final Programmatic Environmental Impact Statement (EIS). 88 Fed. Reg. 67,798 (Oct. 2, 2023). The PFP proposes three lease sales in the Gulf of Mexico Program Area – scheduled for 2025, 2027, and 2029. The PFP includes various lease requirements that are meant to provide protection to sensitive […]
Shale Law Weekly Review—Week of September 04, 2023
Landowner Royalties: Appeals Court Upholds 2016 Regulations on Oil and Gas Royalty Calculations for Federal and Tribal Lands ⚡
On August 25, 2023, the U.S. Tenth Circuit Court of Appeals filed its decision in a case brought by the American Petroleum Institute (API) against the Federal Government with respect to a set of 2016 amendments affecting how royalties for oil and gas production on federal lands are calculated. American Petroleum Institute v. United States Department of Interior et al, No. 21-8076 (10th Cir.). The amendments at issue included the adoption of a default variation method, the elimination of certain cost […]
Shale Law Weekly Review – Week of September 20, 2021
State Regulation: Los Angeles County Board of Supervisors Unanimously Votes to Phase Out Oil and Gas Development ⚡
On September 15, 2021, the County of Los Angeles Board of Supervisors unanimously voted on a motion to prohibit new oil and gas development within the county. In that regard, the Board requested the Los Angeles County Department of Regional Planning (DRP) to modify the pending Draft Oil Well Ordinance for unincorporated Los Angeles County to reflect that ban. Additionally, the Board also agreed to initiate a process to phase out existing oil and gas drilling in the unincorporated areas of the […]
Shale Law Weekly Review – Week of March 15, 2021
Landowner Royalties: Pennsylvania Attorney General Settles Lawsuit Against Chesapeake Energy ⚡
On March 8, 2021, Pennsylvania Attorney General, Josh Shapiro, announced a settlement with Chesapeake Energy to settle litigation related to Chesapeake’s business practices with landowners. The Attorney General initially filed a complaint against Chesapeake alleging that Chesapeake engaged in deceptive and unfair acts that induced landowners to sign leases with them. (Commonwealth of Pennsylvania v. Chesapeake Energy Corp., No. 2015IR0069). The settlement requires Chesapeake to pay landowners a total of $5.3 million in restitution and will allow landowners to change the terms of their existing leases with regard […]
Shale Law Weekly Review – June 8, 2020
Pipelines: Court of Appeals Denies Stay of Court Order in Pipeline Permit Case
On May 28, 2020, the U.S. Court of Appeals for the Ninth Circuit declined to stay a district court order that enjoined the use of Nationwide Permit 12 (NWP 12) for the construction of new oil and gas pipelines. (Northern Plains Resource Council v. U.S. Army Corps of Engineers, No. 20-35412). The U.S. Army Corps of Engineers (Corps) filed its Motion for Stay Pending Appeal on May 13, 2020. The Corps argued that the district court order was “improper” because it granted relief that was not requested by the Plaintiffs. Plaintiffs, […]
North Dakota Supreme Court Rules that Post-Production Costs Cannot be Deducted from Royalties Paid to State
Written by Chloe Marie – Research Specialist
Case Summary: Newfield Exploration Company et al. v. State of North Dakota et al., No. 2019 ND 193
On July 11, 2019, the Supreme Court of North Dakota concluded that post-production costs relating to the processing of gas into a marketable form could not be subtracted from royalties paid to the State of North Dakota. This article provides a comprehensive summary of this case.
Background
Newfield, an oil and gas company, entered into several natural gas leases with the State of North Dakota containing provisions that required royalties […]
