Lease & Royalty Payments

Energy Companies | Lease & Royalty Payments | Lycoming County | Pennsylvania | Range Resources Corp

Range Leases Lycoming County-Owned Land for $5.4M + 2% Royalty
September 16, 2025September 16, 2025

Following three years of negotiations, Lycoming County Commissioners celebrated closing a deal with Range Resources to lease 1,350 acres in Jackson Township for shale drilling. The county is receiving a $5.4 million signing bonus, which works out to $4,000 per acre. Sweet. However, the county will receive just a 2% royalty for any oil/gas produced from the property. You read that right (not a typo)—just 2%, which has to be the lowest royalty rate we’ve ever seen negotiated, either with a private landowner or a municipality. Read More “Range Leases Lycoming County-Owned Land for $5.4M + 2% Royalty”
Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

Fresh Legal Look at Ohio Royalty Post-Production Deductions
August 27, 2025August 27, 2025

Back in April, MDN brought you news about an important decision issued in a federal court case (in Ohio) that potentially affects landowners and drillers with shale leases throughout the Marcellus/Utica (see 6th Circuit Upholds OH Landowner Claims Against Antero re Deductions). The case, The Grissoms, LLC v. Antero Resources Corporation, was decided by the United States Court of Appeals for the Sixth Circuit (6th Circuit) on April 2, 2025. The case involves a dispute between a certified class of 370 Ohio landowners and Antero. According to a law firm writing about the decision, “This case is more than just a win for those plaintiffs. It sets the stage for future mineral owners in their efforts to fight royalty deductions by clarifying a commonly used oil and gas lease provision.” Read More “Fresh Legal Look at Ohio Royalty Post-Production Deductions”
Carroll County | Encino Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio

OH Rights Owner Wins Case Against Encino re Post-Production Deductions
August 26, 2025August 26, 2025

Another important lawsuit involving whether or not a driller can deduct from royalty checks for post-production expenses was just decided by the Ohio Court of Appeals for the Seventh District in Carroll County. The rights owner in this case, Gateway Royalty II, sued Encino Energy (EAP Ohio) over the issue of deducting post-production expenses from the company’s overriding royalty interests. This is slightly different from the usual post-production issue for landowners/rights owners. Read More “OH Rights Owner Wins Case Against Encino re Post-Production Deductions”
Industrywide Issues | Lease & Royalty Payments | Wastewater

Do Landowners Get Money for Lithium Extracted from Wastewater?
July 3, 2025July 3, 2025

Lithium extracted from Marcellus shale wastewater (brine) has been in the news over the past week or so. Last week, we brought you the exciting news that a Boston-based company, Gradiant, is working on building a lithium production facility in an undisclosed PA location, which we were able to identify as Susquehanna County (see Integrated Lithium Production Plant Coming to PA Marcellus in 2026). Two days later we brought you the news that Vancouver-based Rain City Resources Inc. is already testing lithium-from-brine technology at a different facility in Susquehanna County (see Successful Lithium-from-Brine Pilot Test in Susquehanna County, PA). The news has sparked a flurry of inquiries to MDN asking this question: Will landowners receive compensation for wastewater sales that contain lithium? Read More “Do Landowners Get Money for Lithium Extracted from Wastewater?”
Industrywide Issues | Lease & Royalty Payments | Litigation | Statewide WV | West Virginia

Another Look at Recent Rulings by WV Supremes re Royalty Deductions
June 24, 2025June 24, 2025

The West Virginia Supreme Court recently issued two 3-2 decisions reinforcing that oil and gas producers generally cannot deduct post-production costs from royalty payments to mineral owners unless lease agreements explicitly permit such deductions. We previously reported on both decisions. On June 6, the Supremes ruled in Kaess v. BB Land LLC on “in-kind” royalty leases (see WV Supremes Rule on “In-Kind” Royalties & Post-Production Deductions). On June 11, the court ruled in Romeo v. Antero Resources Corporation on whether the “marketable product rule” applies up to the “point of sale” for gas and NGLs (see WV Supreme Court Grants Landowners Second Major Win in a Week). This post considers the rulings from both cases (which are related) and how those two rulings affect landowners and drillers in the Mountain State. Read More “Another Look at Recent Rulings by WV Supremes re Royalty Deductions”
Industrywide Issues | Lease & Royalty Payments | M&A

WhiteHawk Finally Gets PHX Minerals to the Altar; Merger Done
June 24, 2025June 24, 2025

Talk about shotgun weddings! WhiteHawk Energy has been smitten with PHX Minerals for two years. WhiteHawk repeatedly proposed marriage (M&A), yet PHX repeatedly gave WhiteHawk the cold shoulder (see our WhiteHawk/PHX articles here). After begging, pleading, threatening, and appealing to shareholders, WhiteHawk did it. In May, WhiteHawk, one of the largest royalty owners in the Marcellus Shale, announced a deal to acquire PHX Minerals Inc., a mineral rights owner with holdings in the Haynesville Shale and elsewhere, for $187 million, or $4.35 per share (see WhiteHawk Prevails, Gets PHX Minerals Down the Aisle for $187M). The deal closed yesterday, and PHX is now part of WhiteHawk. Read More “WhiteHawk Finally Gets PHX Minerals to the Altar; Merger Done”
Antero Resources | Energy Companies | Harrison County | Industrywide Issues | Lease & Royalty Payments | Litigation | Statewide WV | West Virginia

WV Supreme Court Grants Landowners Second Major Win in a Week
June 13, 2025June 13, 2025

In April, MDN told you that the West Virginia Supreme Court was scheduled to hear oral arguments in two important oil and gas royalty cases (see WV Supremes Hear Oral Arguments in 2 Important O&G Royalty Cases). Earlier this week, MDN reported the WV Supreme Court had ruled on the first of the two cases, ruling in favor of landowners on the issue of post-production deductions (see WV Supremes Rule on “In-Kind” Royalties & Post-Production Deductions). The other shoe just dropped. The Supremes have ruled in a second case, against Antero Resources, once again siding with landowners to disallow post-production deductions. As usual, it’s complicated… Read More “WV Supreme Court Grants Landowners Second Major Win in a Week”
Industrywide Issues | Lease & Royalty Payments | Litigation | Pleasants County | Statewide WV | West Virginia

WV Supremes Rule on “In-Kind” Royalties & Post-Production Deductions
June 10, 2025June 10, 2025

In April, MDN told you that the West Virginia Supreme Court was scheduled to hear oral arguments in two important oil and gas royalty cases (see WV Supremes Hear Oral Arguments in 2 Important O&G Royalty Cases). One of those two was Kaess v. BB Land LLC, a case we were not previously aware of. In Kaess v. BB Land LLC, the Supremes were asked to rule on two questions: (1) whether an implied duty to market applies to leases containing an “in-kind” royalty provision, and (2) whether the requirements for deducting post-production expenses apply to in-kind royalty leases. The Supremes ruled on Friday—in favor of landowners. Read More “WV Supremes Rule on “In-Kind” Royalties & Post-Production Deductions”
Bradford County | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania

PA Supremes Important Decision for Landowners re “Title Washing”
June 3, 2025June 3, 2025

Alice, get ready to go down the rabbit hole into litigation Wonderland. This post is about a Pennsylvania Supreme Court decision issued on May 30, 2025. In the case Commonwealth of Pennsylvania, Pennsylvania Game Commission v. Thomas E. Proctor Heirs Trust, the PA Supremes addressed a question from the Third Circuit Court of Appeals regarding whether a 1908 tax sale of an “unseated” (undeveloped) parcel of land, the Haines Warrant, constituted a “title wash” that divested the subsurface estate owners of their ownership interest. We think the case has broader implications for landowners and drillers with respect to who owns mineral rights that have been separated from surface rights. Read More “PA Supremes Important Decision for Landowners re “Title Washing””
Industrywide Issues | Lease & Royalty Payments | M&A

WhiteHawk Prevails, Gets PHX Minerals Down the Aisle for $187M
May 13, 2025May 13, 2025

WhiteHawk Energy is smitten with PHX Minerals. WhiteHawk has been trying to get PHX down the marriage aisle in any way it can for nearly two years. PHX has repeatedly given WhiteHawk the cold shoulder (see our WhiteHawk/PHX articles here). After begging, pleading, threatening, and appealing to shareholders, WhiteHawk has finally done it. WhiteHawk, one of the largest royalty owners in the Marcellus Shale, will acquire PHX Minerals Inc., a mineral rights owner with holdings in the Haynesville Shale and elsewhere, for $187 million ($4.35 per share). Read More “WhiteHawk Prevails, Gets PHX Minerals Down the Aisle for $187M”
Antero Resources | Energy Companies | Industrywide Issues | Jay-Bee Oil & Gas | Lease & Royalty Payments | Litigation | Statewide WV | West Virginia

WV Supremes Hear Oral Arguments in 2 Important O&G Royalty Cases
April 22, 2025April 22, 2025

The West Virginia Supreme Court was scheduled to hear two significant oil and gas royalty disputes during a morning session today. Both cases center on whether natural gas companies can deduct post-production costs from royalty payments and, if so, under what circumstances. The stakes are incredibly high for both landowners and drillers. The first case, Kaess v. BB Land LLC, we had not previously heard about. The second case, Romeo v. Antero Resources Corporation, we have heard about. We first reported on that case back in 2017 (see OH, WV Landowners Sue Antero re Post-Production Royalty Deductions). Read More “WV Supremes Hear Oral Arguments in 2 Important O&G Royalty Cases”
Antero Resources | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

6th Circuit Upholds OH Landowner Claims Against Antero re Deductions
April 4, 2025April 4, 2025

An important decision was recently issued in a federal court case (in Ohio) that potentially affects landowners and drillers with shale leases throughout the Marcellus/Utica. At least, we believe it has broader implications. The case, The Grissoms, LLC v. Antero Resources Corporation, was decided by the United States Court of Appeals for the Sixth Circuit (6th Circuit) on April 2, 2025. The case involves a dispute between a certified class of 370 Ohio landowners and Antero. The landowners alleged that Antero underpaid them $10 million in natural gas royalties by improperly deducting certain processing and fractionation costs from their royalty payments, violating their lease agreements. In 2023, the landowners won against Antero in the U.S. District Court for the Southern District of Ohio, Eastern Division (see OH Fed Court Ruling Further Clarifies Post-Production Deductions). Antero appealed the case to the 6th Circuit. Now, the 6th Circuit has also ruled in favor of the landowners. Read More “6th Circuit Upholds OH Landowner Claims Against Antero re Deductions”
Lease & Royalty Payments | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Large Appalachia Mineral/Royalty Packages Available for Bid Now
April 4, 2025April 4, 2025

Earlier this week, MDN told you about a mineral/royalty rights purchase made by WhiteHawk Energy, increasing its ownership interest in 475,000 gross acres in the Marcellus Shale for $118 million (see WhiteHawk Energy Doubles Ownership Interest in 475K Marcellus Acres). It appears there are more of those kinds of deals on the immediate horizon. According to Darin Zanovich, president and CEO of Mesa Minerals, “a couple of large, $100 million-plus transactions” in the Marcellus/Utica are coming to market now, apart from the WhiteHawk deal. Read More “Large Appalachia Mineral/Royalty Packages Available for Bid Now”
Carroll County | Encino Energy | Energy Companies | Lease & Royalty Payments | Ohio

Encino Selected to Frack Under 62 Acres in Leesville Wildlife Area
April 1, 2025April 1, 2025

GREAT news! The Ohio Oil and Gas Land Management Commission (OGLMC) met for about 15 minutes on Friday and voted to award Encino Energy the right to drill under (not on) 62.5 acres of Leesville Wildlife Area located in Carroll County. Encino will pay a $218,715 signing bonus and 18% royalties on any oil and gas produced. Landowners in Carroll County, pay attention: That works out to be a hefty $3,500 per acre for a signing bonus. Read More “Encino Selected to Frack Under 62 Acres in Leesville Wildlife Area”
Greene County (PA) | Industrywide Issues | Lease & Royalty Payments | M&A | Pennsylvania | Washington County

WhiteHawk Energy Doubles Ownership Interest in 475K Marcellus Acres
April 1, 2025April 9, 2025

WhiteHawk Energy, headquartered in Philadelphia and owning mineral and royalty interests for over 1 million gross unit acres with over 3,400 producing horizontal shale wells between the Marcellus and the Haynesville, announced yesterday that it has doubled its ownership in Marcellus assets in Washington and Greene counties in southwest Pennsylvania. WhiteHawk paid $118 million to increase ownership across 475,000 gross acres in the Marcellus Shale. The drillers operating on those acres include EQT, Range Resources, and CNX Resources.

4/8/25 UPDATE: San Jacinto Minerals announced that it was the seller of the mineral and royalty interests. See the press release below.

Read More “WhiteHawk Energy Doubles Ownership Interest in 475K Marcellus Acres”
Guernsey County | Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | Ohio

$9.6M Renovation Coming to Salt Fork State Park, Thx to Fracking
March 25, 2025March 25, 2025

Last week, MDN told you that fracking has begun under the park, and literally nobody noticed (see Drilling Begins Under Salt Fork State Park – “No Signs of Fracking”). The radical left has been stroking out over the prospect of drilling under (not on) Salt Fork and other state-owned parks and lands. The Big Green-backed Save Ohio Parks protested in Columbus earlier this month, wearing and using fossil fuels to protest fossil fuels and drilling under Ohio’s parks (see Antis Rally at OH Statehouse to Protest Fossil Fuels They Were Wearing). With the din of irrational antis now dying down comes word that Salt Fork State Park, Ohio’s biggest start park (in Guernsey County), is getting a $9.6 million makeover courtesy of the money the state received from the shale frackers who are now fracking underneath the park. Read More “$9.6M Renovation Coming to Salt Fork State Park, Thx to Fracking”