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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

On June 2, 2017 the Louisiana Second Circuit Court of Appeal affirmed a trial court’s judgment cancelling a mineral lease under Mineral Code article 140 and provided further clarity on a production in paying quantities analysis under Louisiana Mineral Code article 124. [1] 1] The dispute in Gloria’s Ranch, L.L.C. Tauren Exploration, Inc.

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Louisiana Second Circuit Addresses: (1) Creation of Mineral Servitudes Via Notarial Acts of Correction; (2) Obstacles Suspending the Prescription of Nonuse from Running Against Mineral Servitudes; and (3) Payment of Court Costs in Concursus Actions

The Energy Law

1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was operating. 31:59 (2017)). [24] Flat River Farms, L.L.C. , which governs notarial acts of correction: A. (1) b) The notary who actually prepared the act containing the error. [13] 13] See id.

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