Texas Appeals Court Interprets Mineral Conveyances
The Energy Law
MAY 25, 2007
04-05-00904-CV, 2007 WL 460648 (Tex. 14, 2007). Morris Resources, Ltd., Morris Resources, Ltd., Hamilton v. Morris Res., San Antonio Feb.
2007 Gas Royalty Interest 
40 
Texas Supreme Court Holds that Add-Back Provision in Oil and Gas Lease Required Royalties to be Paid on Prices in Excess of the Producers’ Gross Proceeds
The Energy Law
MARCH 15, 2023
2023), in which it held that lessees owed royalties in excess of their gross proceeds, specifically “adding back” costs incurred by third-party buyers that were enumerated in the sales contract and subtracted from the sales price. The lessees owned working interests in certain oil and gas leases that were executed in 2007.
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