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Louisiana Operators Are Not Responsible For Making Non-Participants’ Royalty Payments Before Payout

The Energy Law

In Gulf Explorer, LLC v. 2007 WL 1651090 (La. 6/8/07), the operator completed a well that was plugged and abandoned without reaching payout. A non-participating working interest owner sued, asking the court to declare that its royalty and overriding royalty owners were entitled to their share of production.

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