Gentry Locke Attorneys

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  • Established in 1923
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  • Gentry Locke is a dynamic law firm fiercely driven to achieve success for our clients through uncommon thinking.
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Gas/Coal Bed Methane

Virginia was in the forefront with developing this once discarded by-product of coal mining. In 1990, the Virginia General Assembly passed the Gas and Oil Act, clearing the way for the development of coal bed methane. Now, there are thousands of coal bed methane wells in Virginia, with aggressive development increasing each year.

As the coal bed methane industry has matured, Gentry Locke has been there to assist clients in sorting out the legal issues and, where necessary, litigating unsettled areas of the law such as:

Royalty Deductions:

  • See Levisa Coal Company, et al. v. Consolidation Coal Company. Gentry Locke recovered a verdict of $10,679,807 establishing: (1) that the gas operator was not entitled to calculate royalty deductions so as to recover an after-tax rate of return or even any cost of capital for post-production costs such as gathering, compressing and transporting gas; (2) that capital costs for gathering and compression assets must be amortized over 30 years; and (3) that capital costs for pipeline assets must be amortized over 40 years.

Ownership of coalbed methane:

This thorny area of disputes has had a long life in Virginia.

  • See Harrison-Wyatt, LLC v. Donald Ratliff, et al. In this landmark case, Gentry Locke represented coal owners in resolving the long-unsettled issue of whether coal or gas owners properly claimed the coal bed methane; and
  • See John Sheffield, Trustee, et al. v. CNX Gas Company, LLC, et al. In this case, Gentry Locke represented owners of the gas estate against claims by the owners of “other minerals,” establishing that the gas owners are the rightful owners of coal bed methane.
  • See Hale v. CNX Gas Company, LLC et al. In this class action case, Gentry Locke represented coal owner interests, particularly regarding whether the law in Harrison-Wyatt applied to FRAC gas where coal mining has not occurred.

Rights of Competing Gas Operators:

  • See GeoMet v. CNX Gas Company, LLC:
  • Supreme Court opinion on appeal from Buchanan County (injunction reversed as inappropriate where one operator placed pipeline over acreage leased by another for gas production)
  • Supreme Court opinion on appeal from Tazewell County (injunction reversed as inappropriate where one gas operator purchased an interest in property then sought injunction to prevent pipeline)
  • Complaint in Antitrust case against CNX Gas Company LLC (can dominant operator take actions to exclude competition in the Oakwood Field?)
  • Virginia Supreme Court opinion finding in favor of property owner, ruling that a CBM gas lessee cannot exclude a competitor’s pipeline on a 20,000 acre tract under an “exclusive” CBM lease with the property owners.

Duties of Operators to protect coal bed methane:

  • In Yukon Pocahontas Coal Company, et al. v. Consolidation Coal Company, et al, Gentry Locke asserted that its gas owner clients were owed a duty by the gas operator, CNX, to protect the gas owner’s interests. Gentry Locke successfully asserted the existence of a duty to act as a reasonably prudent gas operator, surviving pre-trial motions designed to exclude such a duty. The case settled for $75 million immediately prior to trial.

“Consent to Stimulate” coal bed methane:

  • In Virginia, coal bed methane operators must obtain the coal owner or lessee’s “consent” to stimulate the coal in order to produce the gas. This has provided a substantial advantage to gas operators affiliated with coal lessee’s. Gentry Locke has been very active in addressing these issues.
  • Decision of Director of the Virginia Division of Gas and Oil, May 4, 2008: (finding Island Creek Coal Company, which has no active mines or mine permits, is not a coal “operator” entitled to oppose CBM development under the consent to stimulate law in Virginia). Decision was subsequently reversed by the Virginia Gas & Oil Board.

Contract disputes:

  • In Gasco Drilling, Inc. v. Knox Energy, LLC and Consol Energy, Inc., Gentry Locke represented CNX Gas Company, LLC against claims asserted by a services vendor.

As a result of our active involvement in these and many other disputed issues, Gentry Locke is known as the legal leader in all aspects of the coal bed methane industry.

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  • 5.0/5.0 Review for Mr. Noah P. Sullivan by a Attorney on 08/11/23 in Government

    Noah Sullivan was one of the best attorneys I've worked with in my +20+ years of assisting the Virginia Governor's Office with the regulatory review process. He understands the law and regulations and how to get things done. Very high emo... Read more

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  • 5.0/5.0 Review for Mr. Noah P. Sullivan by a Partner on 07/31/23 in Litigation

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Diversity

Diversity is and will always be a focus of our law firm. Gentry Locke understands that each person has unique attributes and backgrounds, and we benefit from these diverse qualities. We value differences, including life and work experiences, personal and religious values, work practice, family responsibilities, age, race, gender, ethnicity, disability and cultural backgrounds. We strive to recruit attorneys and staff with outstanding legal skills and ethics, as well as diverse backgrounds, to allow us to better serve our clients.

EQUAL EMPLOYMENT OPPORTUNITY IS THE LAW

Gentry Locke Rakes & Moore, LLP is an equal opportunity employer. We embrace diversity and offer employment opportunities regardless of race, gender, age, national origin, religion or disability. We are committed to promoting a diverse workplace that represents the rich and varied perspectives reflected in our community.

Gentry Locke Rakes & Moore recruits, hires, promotes, pays and retains its employees solely on the basis of their qualification and performance without regard to race, color, sex, age, religion, disability, national origin, and any other characteristic protected by law. Further, Gentry Locke Rakes & Moore does not discriminate against any individual (other than an unauthorized alien) with respect to recruitment, hiring or discharging of the individual from employment because of such individual's citizenship status. This provision applies with respect to "citizens" and "intending citizens" as those terms have been defined in the Immigration Reform and Control Act of 1986.

  1. Matter Budgeting and Financial Management

    • Does the firm establish formal budgets for client engagements? Yes
    • Are bills submitted electronically? Yes
  2. Quality Management

    • Does the firm conduct end of matter reviews? Yes
  3. Litigation General Best Practices

    • Does the firm have a formalized new associate litigation training/mentoring program? Yes
    • Does the firm's litigation department have a structured approach to early case assessment? For example: Does your firm implement a standard approach to determine risks and strengths early in a case to assess trial or settlement options? Yes
    • Does the firm have an established records management team to assist clients with records retention, compliance and litigation preparedness? Yes
  4. Litigation eDiscovery Best Practices

    • Does the firm have an established eDiscovery Committee? Yes
    • Does your firm have any educational programs designed to address the changing federal rules of civil procedure? Yes
    • Does the firm have a standardized litigation hold program in place for its clients? Yes
    • Does your firm have a standardized protocol to guide client data collection? (i.e. Maintaining chain of custody, utilizing forensically sound procedures) Yes
    • Does the firm have a standardized protocol to guide processing clients' edata? (i.e. all data produced in PDF, meta data preserved?) Yes
    • Does the firm have a standardized approach for document reviews across practice groups (i.e. established protocol for eDiscovery review depending on the needs of the case) No
  5. Vendor Management

    • Does the firm have preferred vendor relationships? Yes
  6. Knowledge Management

    • Does the firm have a knowledge management program? No
  7. Disaster Recovery

    • Does the firm have a disaster recovery plan in place? Yes

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