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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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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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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. May 30, 2014). Environmental Protection Agency , the United States Court of Appeals for the District of Columbia Circuit vacated EPA’s policy limiting the reach of the Sixth Circuit’s decision in Summit Petroleum Corp.

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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 Resources , 939 S.W.2d 2d at 120-21. II, LLC v.

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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. The well at issue (the SWD5) was originally drilled for oil and gas production in 1957, but it was converted into a saltwater-disposal well around 2007.

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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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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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