Property owners who leased the oil and gas rights to their land cannot recover royalties for gas lost or used prior to the point of sale, the Superior Court has ruled in an issue of first impression.

A unanimous three-judge panel held April 7 in Hall v. CNX Gas that a lease assigning a one-eighth royalty of the net amount realized from the sale of oil and gas does not consider royalties for gas lost due to evaporation or leakage as it is transported to sale, nor volumes of gas used along the pipeline in processing raw gas into marketable gas.

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