Moving Through the Rocky Legal Terrain to Find a "Safe" Royalty Clause or a "New" Market at the Well

Authors

Patricia Proctor
J. Kevin West
Gregory P. Neil

Publication Date

10-1-2012

Document Type

Symposium

Abstract

This Article will explore whether re-emergence of a market at the wellhead is legally viable considering judicial rulings related to the issue and specifically, whether such a development would be held to run afoul of the implied covenant to market. This Article will review the law of each state with potential for developing Marcellus and Utica Shale gas, while keeping in mind that some states have no law on the issue, again creating uncertainty because of the divergent rulings by other states' courts. Finally, this Article will discuss the merits of completely abandoning the "at the well" approach to valuation for purposes of royalty calculation in new leases as the preferred way of avoiding litigation over this issue.

DOI

10.37419/TWLR.V19.I1.7

First Page

145

Last Page

184

Recommended Citation

Patricia Proctor, J. K. West & Gregory P. Neil, Moving Through the Rocky Legal Terrain to Find a "Safe" Royalty Clause or a "New" Market at the Well, 19 Tex. Wesleyan L. Rev. 145 (2012).
Available at: https://doi.org/10.37419/TWLR.V19.I1.7