DVD : Supreme Court of Ohio - Case No. 2015-0545 Regis F. Lutz, et al. v. Chesapeake Appalachia, LLC
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U.S. District Court for the Northern District of Ohio

ISSUES:

-Does Ohio follow the "at the well" rule, which would allow a drilling company to deduct post-production expenses when calculating oil and gas royalty payments to landowners?

-Does Ohio follow a version of the "marketable product" rule, which doesn't allow the gas company to deduct the expenses for preparing the oil and gas for sale in the market?

-Should Ohio courts not select a rule and attempt to determine the cost allocation based on the interpretation of oil and gas leases on a case-by-case basis?
January 5, 2016