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Houston Court Rejects Weighted Average Royalty Payment Calculations Under Lease Agreement

The Energy Law

February 25, 2010, no pet. Ross alleged that Shell failed to pay royalties in accordance with the lease agreement and that it fraudulently deprived him of royalties by making payments “based on an arbitrary amount even below the internal transfer price.” —Houston [1st Dist.]

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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

9] Unsatisfied with the response, Gloria’s Ranch sent a letter on January 28, 2010 demanding a recordable act evidencing the expiration of the lease, to which the defendants refused. 11] The trial court also found that defendants failed to pay royalties in Section 15 and awarded Gloria’s Ranch the royalties owed plus punitive damages. [12]

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Proposal Encourages Oil & Gas Exploration in South Louisiana

The Energy Law

The Louisiana Mineral and Energy Board is currently reviewing an incentive proposal that would offer a “royalty relief incentive” on new drilling leases along the Louisiana coast. Specifically, the proposal would offer royalties for a period of three years for wells drilled to a depth of fifteen thousand feet along the coastal zone.

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Texas Court Upholds Lease Cancellation for Failure to Pay Shut-In Payments To Proper Party

The Energy Law

Tyler 5/5/2010), the Tyler Court of Appeals upheld a trial court’s findings of fact and conclusions of law with respect to the termination of an oil and gas lease for failure to pay shut-in royalty payments to the proper party. Van Hovenberg (“Van Hovenberg”) conveyed by royalty deed to O.B. Circle Ridge Production, 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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EPA and BSEE Team Up to Resolve Offshore Environmental Violations

The Energy Law

Recently, when there was talk about Houston-based ATP Oil and Gas’ (ATP) legal problems, it was inevitably about its bankruptcy and its effort to bring the overriding royalty interests it had conveyed back into the bankrupt estate as debt instruments. 110.4 & NPDES General Permit, Part I, Section C.3