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Environment & Energy Report

Landowners Lose Early Arbitration Rulings Over Oil Royalties

Feb. 13, 2020, 11:22 PM

Pennsylvania landowners lost their effort to get a court to declare that their claims over oil and gas royalties can’t be arbitrated, or, if they can, that they can be arbitrated on a class basis, according to a Third Circuit opinion.

Landowners Alan and Carol Marbaker and two others sought a declaratory judgment that Statoil USA Onshore Properties Inc., now known as Equinor, waived its right to enforce arbitration clauses related to claims the company underpaid them royalties on their oil and gas leases.

The landowners’ arguments weren’t ripe because the company hasn’t yet moved for arbitration based on the...

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