This is a case that has been working it’s way through the court system and my understanding some judgements have been made but parts are headed or in Federal Court now. Antero deducted post production costs from certain leases for royalty payments. Courts have determined the wording on the leases did not allow for post production deductions. I was not a member of his class action suit (and don’t know why) but I have an original share of the lease that was involved with this case. If I understand the details correctly - we’re talking about 15 to 20K under payment when you add back in these charges. I have reached out to the law firm (Masters) that was listed online as representing the people in this suit but so far (10 days) have not heard back from them. Does anybody know anything about this case? This is the clause in lease regarding oil and then gas - Apparently the court said they can’t deduct post production costs based on that wording.
- (a) Lessee covenants and agrees to deliver to the credit of Lessor, his heirs or assigns, free of costs, in the pipe line to which said Lessee may connect its wells, a royalty of one-eighth (1/8) of native oil produced and saved from the leased premises. (b) Lessee covenants and agrees to pay Lessor as a royalty for the native gas from each and every well drilled on said premises producing native gas, an amount equal to one-eighth (1/8) of the gross proceeds received from the sale of same at the prevailing price for gas sold at the well, for all native gas saved and marketed from the said premises, payable quarterly.
I think, in the analysis of the the judgements - “free of cost” in the first paragraph and “1/8th of the gross proceeds” in the second paragraph were the points of interest. I am unsure of the remaining issues to be dealt with in federal court.
Any feed back appreciated. If I don’t here back from the first law group I will contact another. Lease was at turtle tree fork in tenmile. Lease was from late 70’s, couple of vertical wells were placed their around that time and then Antero got the lease and fracked from around 2014 until today - checks still coming and their aint nothong better than mailbox money.