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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.
This case presents two critical questions: Who owns subsurface caverns created by salt mining operations, and How should in-kind royalties be calculated for salt production? 2017), where the Court emphasized that “the surface owner owns and controls the mass of earth undergirding the surface.” 3d 39 , 47 (Tex.
Given the fact that oil and gas operators often utilize concursus actions in disputes over mineral proceeds/royalties, the Court’s application of Article 4659 ensures that operators can continue to rely on the deposit of funds as satisfying not only their financial obligation to concursus claimants but also to the Court. 31:59 (2017)). [24]
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