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Contracts Keyed to Epstein
Municipal Authority of Westmoreland County v. CNX Gas Company, L.L.C.
Citation:
380 F.Supp.3d 464 (W.D. Pa. 2019)Facts
In January 2002, MAWC entered into an oil and gas lease with CNX’s predecessor Dominion Exploration & Production, Inc. for gas production on approximately 2,255 acres MAWC owns in western Pennsylvania. The parties agree that the Lease ordinarily would permit lessees to deduct post-production costs from royalties owed to MAWC. During the eight years that CNX’s predecessor Dominion extracted gas and paid MAWC royalties under the Lease, Dominion did not deduct any post-production costs. The non-deduction of post-production costs continued for nine months into CNX’s tenure as lessee. Beginning in 2011, CNX began to charge MAWC for its pro rata share of post-production costs. MAWC asserts that from the time lessees began charging these costs, lessees have deducted over $3.5 million from its royalties.
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Topic Resources
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ContractsTopic Refresher Course
Modification: UCC and Common Law PartTopic Charts & Notes
Common Law v Ucc