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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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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

BlueStone primes the Court to resolve a Texas appellate court split regarding whether a lease provision requiring royalties to be paid based on “gross” profits or value received from the sale of oil and gas production nullifies an “at the well” valuation point elsewhere in a lease. Heritage Res., NationsBank , 939 S.W.2d 2d 118, 120-21 (Tex.

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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. The meaning of the word is hotly contested, the death of a lease potentially worth millions of dollars largely depending on the interpretation of a single conjunction.

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Department of Interior Proposes New Financial Assurance and Decommissioning Regulations

The Energy Law

The path to this Proposed Rule has been long and winding, beginning in 2014 with BOEM resisting making changes through formal notice and comment rulemaking pursuant to the Administrative Procedures Act, and instead continuing to regulate this issue through Notice to Lessee (“NTL”) guidance documents.