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

The Energy Law

Mineral lessees may be particularly concerned with whether recent production levels have maintained their leases beyond their primary terms. In Louisiana, as in most jurisdictions, production of oil or gas must be in “paying quantities” to maintain a mineral lease beyond its primary term. [1] Lea Exploration Co. , 2d at 1220. [4]

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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

On June 2, 2017 the Louisiana Second Circuit Court of Appeal affirmed a trial court’s judgment cancelling a mineral lease under Mineral Code article 140 and provided further clarity on a production in paying quantities analysis under Louisiana Mineral Code article 124. [1] Tauren Exploration, Inc. Tauren Exploration, Inc.

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EPA and BSEE Team Up to Resolve Offshore Environmental Violations

The Energy Law

The Violation In March 2012, BSEE conducted an inspection of ATP’s floating production platform facility, known as the ATP Innovator, while it was moored to the sea floor about 45 nautical miles offshore of southeastern Louisiana (about 125 miles south of New Orleans) and engaged in the production of oil and natural gas.

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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

Tauren Exploration, Inc. , The mortgagee directed the mineral lessees to perform specific workovers and completions on other properties collateralized in the mortgage. Tauren Exploration, Inc., The Lease, which contained vertical and horizontal Pugh clauses was originally granted to Tauren Exploration, Inc. 2010-2011 (La.

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