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?