article thumbnail

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

The Energy Law Blog

7] Other examples of capital expenditures may include equipment costs, overhead, depreciation of original equipment, and workover expenses. [8] Dore , 2010 U.S. 2d at 1027; Dore , 2010 U.S. 5] They include fixed or periodic cash expenditures incurred in the daily operation of a well. [6] 5] See id. 2d at 719.

Oil 40
article thumbnail

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 Blog

The mortgagee directed the mineral lessees to perform specific workovers and completions on other properties collateralized in the mortgage. 2010-2011 (La. The mortgagee retained the right to approve the location and depth of the wells drilled under the Lease and other mineral leases subject to the mortgage. 10] See id. at 22-33. [11]

Royalty 40