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Texas Court Upholds Lease Cancellation for Failure to Pay Shut-In Payments To Proper Party

The Energy Law Blog

Ultimately the original lessee lost its lease because it made shut in payments to its lessee, rather than the current royalty owner, to whom those payments were owed. Van Hovenberg (“Van Hovenberg”) conveyed by royalty deed to O.B. Mobley (“Mobley”) “her entire 8/8 Royalty Interest” in a 105.8 In 1976, Karin H.

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