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Western District of Louisiana Holds that Unit Operators May Not Recover Post-Production Costs from an Unleased Mineral Owner’s Share of Production Proceeds

The Energy Law

District Court for the Western District of Louisiana held that a unit operator may not recover post-production costs from an unleased mineral owner’s share of production proceeds in Allen Johnson, et al. 30:10 governed whether a unit operator may deduct post-production costs against UMO’s share of production proceeds. [3]

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Unpacking Proximate Cause in SWD Failure

Producer's Edge

A recent SWD failure case dives into critical questions of proximate cause and explores whether the reasonable prudent operator defense may shield against surface damage claims. In this case, Lee v. Investigation revealed that there was severe degradation of the well’s tubing and casing. Memorial Prod.

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Trans Energy Settlement Shows Need for E&P Wetlands Compliance Strategy

The Energy Law

On September 2, 2014, the Department of Justice announced a settlement in United States v. The Trans Energy settlement shows that exploration and production (E&P) companies need a rigorous compliance strategy for wetlands permit requirements. Trans Energy, Inc. , 14-117 (N.D.W.Va.),

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Trudging the Rocky Landscape of Royalty Dispute Litigation with the Texas Supreme Court Yet Again in BlueStone

The Energy Law

With the prevalence of cases involving royalty disputes in Texas, the state’s Supreme Court has never hesitated to address these issues. One aspect of royalties that gets a significant amount of attention from Texas royalty owners is post-production costs. Heritage Resources , 939 S.W.2d 2d at 120-21. Heritage Resources , 939 S.W.2d

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Air Permitting Update: D.C. Circuit Decision Helps E&P Facilities

The Energy Law

On May 30, 2014, in an unanimous decision in National Environmental Development Association’s Clean Air Project v. The EPA had argued that an operationally interdependent relationship (in the Summit case, spanning a 43-square mile area) was enough to find that pollutant-emitting activities were “adjacent.” May 30, 2014).

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Nigeria Oil Industry Overview

Drillers

Recently, the Nigerian government demanded more than $60 billion in back royalties under a production sharing agreement with the supermajors operating in the country. History of oil in Nigeria Oil was first discovered in Nigeria in the mid-1950s after decades of fruitless exploration. How did this happen? Exxon comes next: the U.S.

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The Meaning of “And” Determines Outcome of Oil and Gas Feud

The Energy Law

Oil and gas operator, Delaware Basin Resources LLC (DBR), entered into 13 leases with 13 mineral owners in February 2014, all of which were essentially the same. Thus, the entire case hinges on the power of the conjunction “and” to conjoin two noncontiguous sections into a single tract. described as follows: Section 6. and Section 2.”

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