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Gas Company Wants New Ruling on W.Va. Roylaties

Tower for drilling horizontally into the Marcellus Shale Formation for natural gas, from Pennsylvania Route 118 in eastern Moreland Township, Lycoming County, Pennsylvania, USA
Ruhrfisch [GFDL (http://www.gnu.org/copyleft/fdl.html)
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A Pittsburgh-based natural gas producer has asked West Virginia's top court to reconsider its recent ruling that gas companies cannot take deductions for post-production costs from royalty payments to the state's landowners for mineral rights.

The State Journal reports EQT Production Co. wants the Supreme Court to withdraw its November ruling and rehear the case.

The ruling was requested by the U.S. District Court for the Northern District of West Virginia, where Patrick Leggett and several other mineral rights owners sued EQT, arguing the company was improperly deducting fees from royalty payments.

Leggett owns a farm in Doddridge County where EQT has about 20 wells. He says the company deducted 25 to 30 percent from royalty payments for years.

EQT's lawyers argue the court misinterpreted state law.


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