MAGNOLIA POINT MINERALS VS CHK LA AND PXP LA - CIVIL ACTION NO. 11-00854 (Decision On No Cost Royalty Language)

CONCLUSION


The Court finds that the Lease language at issue is sufficiently clear and
unambiguous. The intent on the face of the document demonstrates that the production
payments are to be determined using the benchmark calculation of “market value at the
well.” The “no cost” provision in the Exhibit to the Lease does not alter the meaning of
this term of art but applies to any other costs incurred after calculating the “market value
at the well.” Therefore, Chesapeake may deduct post-production costs, including
transportation costs, as set out in determining the “market value at the well.”
Accordingly,
IT IS ORDERED that Chesapeake’s Cross Motion for Partial Summary Judgment
(Record Document 31) be and hereby is GRANTED.
IT IS FURTHER ORDERED that Magnolia’s Motion for Partial Summary
Judgment (Record Document 23) be and hereby is DENIED.
THUS DONE AND SIGNED, in chambers, Shreveport, Louisiana on this 30th

 

Magnolia%2052%20Court%20Ruling.pdf

Views: 6186

▶ Reply to This

Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 17, 2012 at 5:04

Thank you for the kind words, Jim.  I have great respect for Keith and Anna and the vast majority of GHS members.  The paradigm of energy exploration and production has been drastically altered for the better by technological advances.  It is my hope that the Internet will perform a like service for the land/mineral owner who seeks to negotiate a good lease and manage their mineral assets.

RSS

Support GoHaynesvilleShale.com

Top Content 

1 Seller Beware!!! How Mineral Companies Work Together.

Seller Beware!!! How Mineral Companies Work Together.
2 Haynesville Drilled Along Section Line

Haynesville Drilled Along Section Line
3 Flywheel Energy - Fayetteville Shale

Flywheel Energy - Fayetteville Shale
4 Haynesville Fairway could support drilling into the 2050s?

Haynesville Fairway could support drilling into the 2050s?
5 Mitsubishi Corp in talks to acquire Aethon Energy Management

Mitsubishi Corp in talks to acquire Aethon Energy Management
6 What is the meaning of a Unit Well?

What is the meaning of a Unit Well?
7 Tuscaloosa Trend Sits On Top Of Poorest Neighbourhood For Decades - Yet No Royalties Ever Paid To The Community -- Why??

Tuscaloosa Trend Sits On Top Of Poorest Neighbourhood For Decades - Yet No Royalties Ever Paid To The Community -- Why??

Blog Posts

Tuscaloosa Trend Sits On Top Of Poorest Neighbourhood For Decades - Yet No Royalties Ever Paid To The Community -- Why??

In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of)  nor local residents appear to have received any compensation for the minerals extracted from their land.

This area has suffered immense environmental degradation…

Continue

Posted by Char on May 29, 2025 at 14:42 — 1 Comment

Not a member? Get our email.

Groups



© 2025   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service