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Huge Victory for Energy Industry
Spilman filed an amicus brief on behalf of two oil and gas industry associations supporting the position of an international energy company in an appeal before the Fourth Circuit Court of Appeals. In its Opinion and Final Judgment Order, the Fourth Circuit reversed the District Court's decision in favor of the Plaintiffs, holding that the method of calculating the deduction of post-production expenses in the energy company's lease satisfied the third prong of the test set out in the 2006 Tawney decision of the Supreme Court of Appeals of West Virginia. This is a huge victory for the energy industry in that it prevents challenges to the method of calculating royalties commonly stated in Appalachian leases.
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