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: 6109

▶ 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 Monster’ Gas: Aethon’s 16,000-foot Dive in Haynesville West

Monster’ Gas: Aethon’s 16,000-foot Dive in Haynesville West
2 Update: Companies Withdraw Plan to Set Arkansas Lithium Royalties

Update: Companies Withdraw Plan to Set Arkansas Lithium Royalties
3 Associated gas boom hurting gas-focused producers

Associated gas boom hurting gas-focused producers
4 U.S. natural gas trade will continue to grow with the startup of new LNG export projects

U.S. natural gas trade will continue to grow with the startup of new LNG export projects
5 Could a US lithium glut develop in the near future?

Could a US lithium glut develop in the near future?
6 Energy Transfer Accused of Boxing Out Louisiana Pipeline Rivals

Energy Transfer Accused of Boxing Out Louisiana Pipeline Rivals
7 Mild winter weather may lead to persistently high natural gas inventories through 2025

Mild winter weather may lead to persistently high natural gas inventories through 2025

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service