Currents - Energy Industry Insights - June 2018

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State Files Motion to Dismiss Federal Lawsuit by EQT -

"Lawyers representing the Secretary of the state Department of Environmental Protection have filed a motion to dismiss a lawsuit by the natural gas company EQT over a new West Virginia royalties law."

Why this is important: When the Supreme Court of Appeals of West Virginia issued its decision in Leggett in May 2017, EQT could claim it had snatched victory from the jaws of defeat: the Court reversed a decision issued only months prior and held that EQT had the right to deduct post-production expenses from royalty payments. Then, however, the West Virginia legislature passed a bill abrogating Leggett's holding and requiring payment of minimum 1/8 royalties without allowance for post-production expenses....

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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