Federal Court OKs Chevron Post-Production Deductions in PA

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Once again the infamous 2010 Pennsylvania Supreme Court case, Kilmer v. Elexco, rears its ugly head. In a decision filed by the U.S. District Court in Western PA, the judges invoke Kilmer v. Elexco as the excuse to grant Chevron the right to deduct a cumulative $54,834 from royalty payments to a Greene County, PA landowner (out of $266,196) even though the original lease says royalties should be paid “at the wellhead” price.

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