Gas Producer Sues WVDEP for Declaration that “Flat Rate Statute” Unconstitutionally Impairs Flat Rate Gas Leases
April 24, 2018
Historically, oil and gas leases have been of two types— those with flat rates and those with production-based royalties. In the “flat rate” leases, the lessees agreed to pay a flat annual fee to lessors for the right to extract oil and gas without regard to whether any mineral was extracted or the amount extracted. In the production-based leases, the lessees agreed to pay a percentage of the…
