Nobe Baker (individually and as Administrator of the Estate of Joann Baker) v. Magnum Hunter Production, Inc.

Summary

The Kentucky Supreme Court affirmed the Court of Appeals' dismissal of the landowners' claims, holding that Kentucky follows the “at‑the‑well” rule for royalty calculations—allowing deduction of post‑production costs—and that the leases remain in effect because paying quantities of gas are being produced. The Court rejected the landowners' “marketable product” approach and their argument that the leases had expired.