Thank you Ms. Malone.
As I scan the case, it appears that this is in response to an overriding royalty interest and whether or not it was appropriate for CHK to allocate costs.
the difference for me is that my interest is a royalty interest and even if they can allocate costs, the lease says “..actual reasonable costs…” I know of few if any businesses, and virtually none that last a very long time in which costs equal or exceed revenues.
I have spoken with another mineral owner and he has been told by the oil company that actual costs are well in excess of what they are showing but they cannot recapture these costs against the oil royalty.
Thanks again for providing the article.