3rd Circuit: Fracking Company Properly Paid ‘Shut-In’ Royalties Under Lease

Mealey's (June 18, 2015, 3:09 PM EDT) -- PHILADELPHIA — A panel of the Third Circuit U.S. Court of Appeals on July 17, 2014, affirmed a lower court’s dismissal of a landowner’s lawsuit against an oil and gas exploration company engaged in hydraulic fracturing on grounds that it did not violate the lease agreement when it made shut-in royalty payments to the property owner based on the terms of the contract, which gave the company permission to drill on the property in question (Edgar H. Messner v. SWEPI LP, No. 13-3813, 3rd Cir.; 2014...
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