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Production in Paying Quantities: Maintaining Mineral Leases Beyond Their Primary Terms with Production of Oil or Gas

The Energy Law

4] Paying quantities cases usually focus on what expenses constitute “operating expenses.” “Operating expenses”—or “lifting expenses” as they are sometimes referred—are “ordinary, recurring expenses” that are attributable to the expense of production, after the well is drilled and completed. [5] McKinney , 545 So. 2d 1216, 1220 (La.

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Department of Interior Proposes New Financial Assurance and Decommissioning Regulations

The Energy Law

In most cases of default of a current lessee or owner of operating rights, BSEE will call upon a prior interest owner to perform the required decommissioning. A prior lessee could be held liable for decommissioning a hurricane-toppled platform years after its exit and completion of all lease decommissioning obligations.

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Department of Interior Proposes New Financial Assurance and Decommissioning Regulations

The Energy Law

In most cases of default of a current lessee or owner of operating rights, BSEE will call upon a prior interest owner to perform the required decommissioning. A prior lessee could be held liable for decommissioning a hurricane-toppled platform years after its exit and completion of all lease decommissioning obligations.

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Louisiana Second Circuit Addresses: (1) Creation of Mineral Servitudes Via Notarial Acts of Correction; (2) Obstacles Suspending the Prescription of Nonuse from Running Against Mineral Servitudes; and (3) Payment of Court Costs in Concursus Actions

The Energy Law

1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was operating. Flat River Farms, L.L.C. , the Louisiana Second Circuit addressed issues affecting the creation and preservation of mineral servitudes and payment of court costs in a concursus action. [1]

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