American Oil and Gas Reporter - March 2016 - 19

IndustryDigest
making its statutorily required 90-day
finding, the service has instead launched
a five year status review of the beetle,"
the notification reads.
According to the litigants, USFWS
listed the American burying beetle in
1989 in part because of claims the
beetle's range had shrunk to a tenth of
its former size. "Claims of a 90 percent
reduction in the historical range of the
species were the foundation of the
service's decision to list the beetle as
endangered-yet scientifically
defensible, rangewide studies of
presence/absence or abundance have
never been completed for this highly
variable and eclectically distributed
species," the IPAA filing contends.
"While anecdotal evidence of a
historical decline in the range and
distribution of the beetle exists in the
public record . . . there is no evidence
that the beetle is in danger of extinction
across all or a significant portion of its
contemporary range."
The notification goes on to cite
further evidence that the co-plaintiffs
say supports a delisting, including an
expanding range and population, and
the lack of any proven threats. ❒

and the justices decided it did.
The justices rejected Chesapeake's bid
for rehearing on the same vote, reissuing
the opinion with minor word changes.
TIPRO had filed an amicus brief on
Chesapeake's behalf, warning that the
court's June 2015 decision could affect
thousands of ORRIs across Texas
(AOGR, January 2016, pg. 152). "If
allowed to stand, the ruling . . . will
result in substantial unintended
windfalls for ORRI owners," worried
TIPRO President Ed Longanecker. "It
also may call into question the
commercial viability of marginal wells."
Chesapeake had argued that under the
precedent of Heritage Resources v.
NationsBank, it could deduct
postproduction costs. The firm contended
the words "cost-free" in the lease language
meant free of production costs, while the
Hyders maintained that term meant free of
production as well as postproduction costs
(AOGR, January 2016, pg. 152).
In rejecting Chesapeake's motion for
rehearing, the Texas Supreme Court
replied, "Chesapeake argues that 'costfree overriding royalty' is merely a
synonym for overriding royalty, and a
number of lease provisions discussed in
other cases support that view. The
exception for production taxes, which we

have said are postproduction expenses,
cuts against Chesapeake's argument. It
would make no sense to state that the
royalty is free of production costs, except
for postproduction taxes."
The exception for taxes might be
taken to indicate that "cost free" refers
only to postproduction costs, the
justices write, but it is not uncommon
for a lease to include a tax exception
from production costs. ❒

AFPM, API Seek Review
Of EPA Biofuel Mandate
WASHINGTON-The U.S.
Environmental Protection Agency's
renewable fuel standard rule making has
sparked legal responses from two
industry groups.
The American Fuel & Petrochemical
Manufacturers filed a petition for
review with the U.S. Court of Appeals
for the District of Columbia Circuit on
Feb. 10, asserting the EPA had failed to
comply with federal requirements to
establish biofuel volume requirements.
A day later, the American Petroleum
Institute filed for a review in the U.S.
Court of Appeals in Washington.
"Despite the agency's best efforts,
certain aspects of the final RFS rule still

Texas Supreme Court
Rejects Chesapeake Bid
To Rehear Hyder Case
DALLAS-The Texas Supreme Court
has rejected Chesapeake Energy Corp's
motion for rehearing in a case that the
Texas Independent Producers & Royalty
Owners Association worries could have
negative consequences for producers.
On Jan. 29, the court declined to rehear
its June 2015 ruling that upheld a 2014
appeals court decision involving lease
language for a Barnett Shale operation
that awarded a Fort Worth family at least
$1 million in royalties and attorney fees.
In its June 2015 ruling in Chesapeake
v. Hyder, the Texas Supreme Court, in a
5-4 vote, affirmed that Chesapeake
improperly deducted post-production
costs from gas royalties paid to the
landowners. According to the court, an
overriding royalty on oil and gas
production generally is free of production
costs, but must bear its share of
postproduction costs unless both parties
agree otherwise. The only question the
court had to resolve was whether the
lease expressed a different agreement,

Jim McKinney (left), senior vice president and manager at EnerVest Ltd., accepts the Independent Oil and Gas Association of West Virginia's 2016 Gunslinger Award for lifetime
service from 2015 winner, George Patterson, during IOGAWV's winter meeting in
Charleston, W.V. In making the presentation, Patterson described McKinney as one possessing "a broad base of knowledge about our industry, an uncanny ability to understand any new issues, and special people skills that move organizations, including this
one." McKinney served as IOGAWV president in 2013-14, as vice president and program
chairman in 2012-13, and has been involved with the association's Environmental and
Safety, Governmental Affairs, and Commerce committees. IOGAWV winter meeting coverage begins on page 92.

MARCH 2016 19



American Oil and Gas Reporter - March 2016

Table of Contents for the Digital Edition of American Oil and Gas Reporter - March 2016

Contents
American Oil and Gas Reporter - March 2016 - Cover1
American Oil and Gas Reporter - March 2016 - Cover2
American Oil and Gas Reporter - March 2016 - 3
American Oil and Gas Reporter - March 2016 - Contents
American Oil and Gas Reporter - March 2016 - 5
American Oil and Gas Reporter - March 2016 - 6
American Oil and Gas Reporter - March 2016 - 7
American Oil and Gas Reporter - March 2016 - 8
American Oil and Gas Reporter - March 2016 - 9
American Oil and Gas Reporter - March 2016 - 10
American Oil and Gas Reporter - March 2016 - 11
American Oil and Gas Reporter - March 2016 - 12
American Oil and Gas Reporter - March 2016 - 13
American Oil and Gas Reporter - March 2016 - 14
American Oil and Gas Reporter - March 2016 - 15
American Oil and Gas Reporter - March 2016 - 16
American Oil and Gas Reporter - March 2016 - 17
American Oil and Gas Reporter - March 2016 - 18
American Oil and Gas Reporter - March 2016 - 19
American Oil and Gas Reporter - March 2016 - 20
American Oil and Gas Reporter - March 2016 - 21
American Oil and Gas Reporter - March 2016 - 22
American Oil and Gas Reporter - March 2016 - 23
American Oil and Gas Reporter - March 2016 - 24
American Oil and Gas Reporter - March 2016 - 25
American Oil and Gas Reporter - March 2016 - 26
American Oil and Gas Reporter - March 2016 - 27
American Oil and Gas Reporter - March 2016 - 28
American Oil and Gas Reporter - March 2016 - 29
American Oil and Gas Reporter - March 2016 - 30
American Oil and Gas Reporter - March 2016 - 31
American Oil and Gas Reporter - March 2016 - 32
American Oil and Gas Reporter - March 2016 - 33
American Oil and Gas Reporter - March 2016 - 34
American Oil and Gas Reporter - March 2016 - 35
American Oil and Gas Reporter - March 2016 - 36
American Oil and Gas Reporter - March 2016 - 37
American Oil and Gas Reporter - March 2016 - 38
American Oil and Gas Reporter - March 2016 - 39
American Oil and Gas Reporter - March 2016 - 40
American Oil and Gas Reporter - March 2016 - 41
American Oil and Gas Reporter - March 2016 - 42
American Oil and Gas Reporter - March 2016 - 43
American Oil and Gas Reporter - March 2016 - 44
American Oil and Gas Reporter - March 2016 - 45
American Oil and Gas Reporter - March 2016 - 46
American Oil and Gas Reporter - March 2016 - 47
American Oil and Gas Reporter - March 2016 - 48
American Oil and Gas Reporter - March 2016 - 49
American Oil and Gas Reporter - March 2016 - 50
American Oil and Gas Reporter - March 2016 - 51
American Oil and Gas Reporter - March 2016 - 52
American Oil and Gas Reporter - March 2016 - 53
American Oil and Gas Reporter - March 2016 - 54
American Oil and Gas Reporter - March 2016 - 55
American Oil and Gas Reporter - March 2016 - 56
American Oil and Gas Reporter - March 2016 - 57
American Oil and Gas Reporter - March 2016 - 58
American Oil and Gas Reporter - March 2016 - 59
American Oil and Gas Reporter - March 2016 - 60
American Oil and Gas Reporter - March 2016 - 61
American Oil and Gas Reporter - March 2016 - 62
American Oil and Gas Reporter - March 2016 - 63
American Oil and Gas Reporter - March 2016 - 64
American Oil and Gas Reporter - March 2016 - 65
American Oil and Gas Reporter - March 2016 - 66
American Oil and Gas Reporter - March 2016 - 67
American Oil and Gas Reporter - March 2016 - 68
American Oil and Gas Reporter - March 2016 - 69
American Oil and Gas Reporter - March 2016 - 70
American Oil and Gas Reporter - March 2016 - 71
American Oil and Gas Reporter - March 2016 - 72
American Oil and Gas Reporter - March 2016 - 73
American Oil and Gas Reporter - March 2016 - 74
American Oil and Gas Reporter - March 2016 - 75
American Oil and Gas Reporter - March 2016 - 76
American Oil and Gas Reporter - March 2016 - 77
American Oil and Gas Reporter - March 2016 - 78
American Oil and Gas Reporter - March 2016 - 79
American Oil and Gas Reporter - March 2016 - 80
American Oil and Gas Reporter - March 2016 - 81
American Oil and Gas Reporter - March 2016 - 82
American Oil and Gas Reporter - March 2016 - 83
American Oil and Gas Reporter - March 2016 - 84
American Oil and Gas Reporter - March 2016 - 85
American Oil and Gas Reporter - March 2016 - 86
American Oil and Gas Reporter - March 2016 - 87
American Oil and Gas Reporter - March 2016 - 88
American Oil and Gas Reporter - March 2016 - 89
American Oil and Gas Reporter - March 2016 - 90
American Oil and Gas Reporter - March 2016 - 91
American Oil and Gas Reporter - March 2016 - 92
American Oil and Gas Reporter - March 2016 - 93
American Oil and Gas Reporter - March 2016 - 94
American Oil and Gas Reporter - March 2016 - 95
American Oil and Gas Reporter - March 2016 - 96
American Oil and Gas Reporter - March 2016 - 97
American Oil and Gas Reporter - March 2016 - 98
American Oil and Gas Reporter - March 2016 - 99
American Oil and Gas Reporter - March 2016 - 100
American Oil and Gas Reporter - March 2016 - 101
American Oil and Gas Reporter - March 2016 - 102
American Oil and Gas Reporter - March 2016 - 103
American Oil and Gas Reporter - March 2016 - 104
American Oil and Gas Reporter - March 2016 - 105
American Oil and Gas Reporter - March 2016 - 106
American Oil and Gas Reporter - March 2016 - 107
American Oil and Gas Reporter - March 2016 - 108
American Oil and Gas Reporter - March 2016 - 109
American Oil and Gas Reporter - March 2016 - 110
American Oil and Gas Reporter - March 2016 - 111
American Oil and Gas Reporter - March 2016 - 112
American Oil and Gas Reporter - March 2016 - 113
American Oil and Gas Reporter - March 2016 - 114
American Oil and Gas Reporter - March 2016 - 115
American Oil and Gas Reporter - March 2016 - 116
American Oil and Gas Reporter - March 2016 - 117
American Oil and Gas Reporter - March 2016 - 118
American Oil and Gas Reporter - March 2016 - 119
American Oil and Gas Reporter - March 2016 - 120
American Oil and Gas Reporter - March 2016 - 121
American Oil and Gas Reporter - March 2016 - 122
American Oil and Gas Reporter - March 2016 - 123
American Oil and Gas Reporter - March 2016 - 124
American Oil and Gas Reporter - March 2016 - 125
American Oil and Gas Reporter - March 2016 - 126
American Oil and Gas Reporter - March 2016 - 127
American Oil and Gas Reporter - March 2016 - 128
American Oil and Gas Reporter - March 2016 - 129
American Oil and Gas Reporter - March 2016 - 130
American Oil and Gas Reporter - March 2016 - Cover3
American Oil and Gas Reporter - March 2016 - Cover4
https://www.nxtbook.com/nxtbooks/aogr/202403
https://www.nxtbook.com/nxtbooks/aogr/202402
https://www.nxtbook.com/nxtbooks/aogr/202401
https://www.nxtbook.com/nxtbooks/aogr/202312
https://www.nxtbook.com/nxtbooks/aogr/202311
https://www.nxtbook.com/nxtbooks/aogr/pbios_202310
https://www.nxtbook.com/nxtbooks/aogr/202309
https://www.nxtbook.com/nxtbooks/aogr/202308
https://www.nxtbook.com/nxtbooks/aogr/202307
https://www.nxtbook.com/nxtbooks/aogr/202306
https://www.nxtbook.com/nxtbooks/aogr/202305
https://www.nxtbook.com/nxtbooks/aogr/202304
https://www.nxtbook.com/nxtbooks/aogr/202303
https://www.nxtbook.com/nxtbooks/aogr/202302
https://www.nxtbook.com/nxtbooks/aogr/202301
https://www.nxtbook.com/nxtbooks/aogr/202212
https://www.nxtbook.com/nxtbooks/aogr/202211
https://www.nxtbook.com/nxtbooks/aogr/202210
https://www.nxtbook.com/nxtbooks/aogr/202209
https://www.nxtbook.com/nxtbooks/aogr/202208
https://www.nxtbook.com/nxtbooks/aogr/202207
https://www.nxtbook.com/nxtbooks/aogr/202206
https://www.nxtbook.com/nxtbooks/aogr/202205
https://www.nxtbook.com/nxtbooks/aogr/202204
https://www.nxtbook.com/nxtbooks/aogr/202203
https://www.nxtbook.com/nxtbooks/aogr/202202
https://www.nxtbook.com/nxtbooks/aogr/202201
https://www.nxtbook.com/nxtbooks/aogr/202112
https://www.nxtbook.com/nxtbooks/aogr/202111
https://www.nxtbook.com/nxtbooks/aogr/pbios_202110
https://www.nxtbook.com/nxtbooks/aogr/202109
https://www.nxtbook.com/nxtbooks/aogr/202108
https://www.nxtbook.com/nxtbooks/aogr/202107
https://www.nxtbook.com/nxtbooks/aogr/202106
https://www.nxtbook.com/nxtbooks/aogr/202105
https://www.nxtbook.com/nxtbooks/aogr/202104
https://www.nxtbook.com/nxtbooks/aogr/202103
https://www.nxtbook.com/nxtbooks/aogr/202102
https://www.nxtbook.com/nxtbooks/aogr/202101
https://www.nxtbook.com/nxtbooks/aogr/202012
https://www.nxtbook.com/nxtbooks/aogr/202011
https://www.nxtbook.com/nxtbooks/aogr/202010
https://www.nxtbook.com/nxtbooks/aogr/202009
https://www.nxtbook.com/nxtbooks/aogr/202008
https://www.nxtbook.com/nxtbooks/aogr/202007
https://www.nxtbook.com/nxtbooks/aogr/202006
https://www.nxtbook.com/nxtbooks/aogr/202005
https://www.nxtbook.com/nxtbooks/aogr/202004
https://www.nxtbook.com/nxtbooks/aogr/202003
https://www.nxtbook.com/nxtbooks/aogr/202002
https://www.nxtbook.com/nxtbooks/aogr/202001
https://www.nxtbook.com/nxtbooks/aogr/201912
https://www.nxtbook.com/nxtbooks/aogr/201911
https://www.nxtbook.com/nxtbooks/aogr/201910
https://www.nxtbook.com/nxtbooks/aogr/201909
https://www.nxtbook.com/nxtbooks/aogr/201908
https://www.nxtbook.com/nxtbooks/aogr/201907
https://www.nxtbook.com/nxtbooks/aogr/201906
https://www.nxtbook.com/nxtbooks/aogr/201905
https://www.nxtbook.com/nxtbooks/aogr/201904
https://www.nxtbook.com/nxtbooks/aogr/201903
https://www.nxtbook.com/nxtbooks/aogr/201902
https://www.nxtbook.com/nxtbooks/aogr/201901
https://www.nxtbook.com/nxtbooks/aogr/201812
https://www.nxtbook.com/nxtbooks/aogr/201811
https://www.nxtbook.com/nxtbooks/aogr/201810
https://www.nxtbook.com/nxtbooks/aogr/pbios_201810
https://www.nxtbook.com/nxtbooks/aogr/201809
https://www.nxtbook.com/nxtbooks/aogr/201808
https://www.nxtbook.com/nxtbooks/aogr/201807
https://www.nxtbook.com/nxtbooks/aogr/201806
https://www.nxtbook.com/nxtbooks/aogr/201805
https://www.nxtbook.com/nxtbooks/aogr/201804
https://www.nxtbook.com/nxtbooks/aogr/201803
https://www.nxtbook.com/nxtbooks/aogr/201802
https://www.nxtbook.com/nxtbooks/aogr/201801
https://www.nxtbook.com/nxtbooks/aogr/201712
https://www.nxtbook.com/nxtbooks/aogr/201711
https://www.nxtbook.com/nxtbooks/aogr/201710
https://www.nxtbook.com/nxtbooks/aogr/201709
https://www.nxtbook.com/nxtbooks/aogr/201708
https://www.nxtbook.com/nxtbooks/aogr/201707
https://www.nxtbook.com/nxtbooks/aogr/201706
https://www.nxtbook.com/nxtbooks/aogr/201705
https://www.nxtbook.com/nxtbooks/aogr/201704
https://www.nxtbook.com/nxtbooks/aogr/201703
https://www.nxtbook.com/nxtbooks/aogr/201702
https://www.nxtbook.com/nxtbooks/aogr/201701
https://www.nxtbook.com/nxtbooks/aogr/201612
https://www.nxtbook.com/nxtbooks/aogr/201611
https://www.nxtbook.com/nxtbooks/aogr/201610
https://www.nxtbook.com/nxtbooks/aogr/pbios2016_programguide
https://www.nxtbook.com/nxtbooks/aogr/201609
https://www.nxtbook.com/nxtbooks/aogr/201608
https://www.nxtbook.com/nxtbooks/aogr/201607
https://www.nxtbook.com/nxtbooks/aogr/201606
https://www.nxtbook.com/nxtbooks/aogr/201605
https://www.nxtbook.com/nxtbooks/aogr/201604
https://www.nxtbook.com/nxtbooks/aogr/201603
https://www.nxtbook.com/nxtbooks/aogr/201602
https://www.nxtbook.com/nxtbooks/aogr/201601
https://www.nxtbook.com/nxtbooks/aogr/201512
https://www.nxtbook.com/nxtbooks/aogr/201511
https://www.nxtbook.com/nxtbooks/aogr/201510
https://www.nxtbook.com/nxtbooks/aogr/201509
https://www.nxtbook.com/nxtbooks/aogr/201508
https://www.nxtbook.com/nxtbooks/aogr/201507
https://www.nxtbook.com/nxtbooks/aogr/201506
https://www.nxtbook.com/nxtbooks/aogr/201505
https://www.nxtbook.com/nxtbooks/aogr/201504
https://www.nxtbook.com/nxtbooks/aogr/201503
https://www.nxtbook.com/nxtbooks/aogr/201502
https://www.nxtbook.com/nxtbooks/aogr/201501
https://www.nxtbook.com/nxtbooks/aogr/201412
https://www.nxtbook.com/nxtbooks/aogr/201411
https://www.nxtbook.com/nxtbooks/aogr/201410
https://www.nxtbook.com/nxtbooks/aogr/201409
https://www.nxtbook.com/nxtbooks/aogr/pbios2014_programguide
https://www.nxtbook.com/nxtbooks/aogr/201408
https://www.nxtbook.com/nxtbooks/aogr/201407
https://www.nxtbook.com/nxtbooks/aogr/201406
https://www.nxtbook.com/nxtbooks/aogr/201405
https://www.nxtbook.com/nxtbooks/aogr/201404
https://www.nxtbook.com/nxtbooks/aogr/201403
https://www.nxtbook.com/nxtbooks/aogr/201402
https://www.nxtbook.com/nxtbooks/aogr/201401
https://www.nxtbook.com/nxtbooks/aogr/201312
https://www.nxtbook.com/nxtbooks/aogr/201311
https://www.nxtbook.com/nxtbooks/aogr/201310
https://www.nxtbook.com/nxtbooks/aogr/201309
https://www.nxtbook.com/nxtbooks/aogr/201308
https://www.nxtbook.com/nxtbooks/aogr/201307
https://www.nxtbook.com/nxtbooks/aogr/201306
https://www.nxtbook.com/nxtbooks/aogr/201305
https://www.nxtbook.com/nxtbooks/aogr/201304
https://www.nxtbook.com/nxtbooks/aogr/201303
https://www.nxtbook.com/nxtbooks/aogr/201302
https://www.nxtbook.com/nxtbooks/aogr/201301
https://www.nxtbook.com/nxtbooks/aogr/201212
https://www.nxtbook.com/nxtbooks/aogr/201211
https://www.nxtbook.com/nxtbooks/aogr/201210
https://www.nxtbook.com/nxtbooks/aogr/201209
https://www.nxtbook.com/nxtbooks/aogr/2012_pbios
https://www.nxtbook.com/nxtbooks/aogr/201208
https://www.nxtbook.com/nxtbooks/aogr/201207
https://www.nxtbook.com/nxtbooks/aogr/201206
https://www.nxtbook.com/nxtbooks/aogr/201205
https://www.nxtbook.com/nxtbooks/aogr/201204
https://www.nxtbook.com/nxtbooks/aogr/201203
https://www.nxtbook.com/nxtbooks/aogr/201202
https://www.nxtbook.com/nxtbooks/aogr/201201
https://www.nxtbook.com/nxtbooks/demo/aogr_clone
https://www.nxtbook.com/nxtbooks/aogr/201112
https://www.nxtbookmedia.com