Charleston, W.Va. (May 30, 2017) – The following is a statement from Anne Blankenship, Executive Director of the West Virginia Oil & Natural Gas Association, regarding the West Virginia Supreme Court’s ruling on the Leggett case:
“The Leggett case is complicated and is specific to old, flat-rate leases governed by state statute. In reversing its previous decision, the West Virginia Supreme Court of Appeals has clearly analyzed the issue exhaustively and correctly determined that post production costs under such leases may be deducted, and that the previous decision in Tawney, which addressed non flat-rate leases not subject to statutory interpretation, is not applicable to the flat-rate leases addressed in Leggett.
It is encouraging to know our state justice system is looking at these matters closely and carefully and understands the complexity of these types of leases. It’s always good for our producers to get clarity regarding the conduct of all aspects of our operations. WVONGA producers enjoy mutually beneficial partnerships with thousands of West Virginia mineral owners. We’ll keep working to help local royalty owners create wealth for their families.”
For additional information, contact Anne Blankenship at (304) 343-1609.