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Topic - Max Baer
Justice Max Baer noted that the term "royalty" and the method of calculating a one-eighth share is not defined by the state's Guaranteed Minimum Royalty Act.
However, he cited various texts on the industry that say a royalty is paid from the net amount remaining after deduction of certain production and well development costs and noted that many land leases in Pennsylvania calculate the royalties minus the post-production cost to bring the gas to market.