10th Circuit Reverses Ruling Disallowing Deductions On Royalty Calculations

( May 6, 2026, 8:52 AM EDT) -- DENVER — A divided panel of the 10th Circuit U.S. Court of Appeals reversed and remanded a lower court’s ruling in a royalty dispute between an energy company and the U.S. Department of the Interior (DOI) related to gas production under a federal lease.  The majority said that an order by the DOI that disallowed certain deductions from royalty payments was “arbitrary and capricious” and reversed the lower court’s decision affirming the order....