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Gulf of Mexico Lease “Price Threshold” Conditions Held Unlawful

The Energy Law

A unanimous panel of the United States Court of Appeals for the Fifth Circuit has held that the United States Department of the Interior violated the Outer Continental Shelf Deep Water Royalty Relief Act (“RRA”) by imposing price threshold conditions that require federal lessees to pay royalties when commodity prices rise.

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Louisiana Second Circuit Provides Clarity on Production in Paying Quantities and Affirms Lease Cancellation Under Mineral Code Article 140 for Failure to Pay Royalties

The Energy Law

arose from a 2004 mineral lease covering nearly 1,400 acres in Sections 9, 10, 15, 16, and 21, Township 15 North, Range 15 West, in Caddo Parish. [2] 10] Gloria’s Ranch amended its petition to include a claim for failure to pay royalties on production in Section 15 (from the unit well drilled by Chesapeake). Tauren Exploration, Inc.

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Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

The Energy Law

1] In the case, a landowner sued its mineral lessees for: (1) failure to provide a recordable act evidencing the expiration of a mineral lease under Mineral Code articles 206-209 and (2) failure to pay royalties under Mineral Code articles 137-140. [2] in unpaid royalties and an additional double damages penalty of $484,058.52

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Fifth Circuit to Hold Oral Argument in Sojitz v. UNOCAL in April 2020

The Energy Law

UNOCAL also reserved a 3% overriding royalty. 2004), where the court held that, to the extent a surety company or co-lessee paid the decommissioning obligations of the bankrupt lessee, they would be subrogated to the government’s claim. 611 (Bankr. Next, Sojitz pointed to the district court’s factual findings (e.g.,

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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

17] Several years later, the Harts entered into a mineral lease with Spanoil Exploration with a three-year primary term that would conclude on May 9, 2004, even though the Harts’ mineral servitude would expire on March 3, 2004 if not used. [18] 20] The CUA permit was obtained on January 20, 2004. However, art.

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