Range Resources Settles Royalty Lawsuit from Landowners for $22 Million

In 2008, Pennsylvania landowners filed lawsuits to have their lease agreements, signed in 2007 with Range Resources, invalidated because the royalty payments they were receiving fell below the 12 1/2 percent level that is guaranteed under PA’s Guaranteed Minimum Royalty Act (GMRA). The landowners separately were joined together into a class action lawsuit representing some 25,000 landowners. The case became known as Frederick v. Range Resources. The landowners challenged the method of calculating royalties that deducts expenses after the gas leaves the wellhead (processing, delivery, other fees). Their argument was that said fees should come from the driller’s side of the ledger sheet and not the landowner.

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