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Louisiana Third Circuit Affirms Dismissal of Royalty and Other Claims Based Upon Prescription

The Energy Law

In a straightforward application of Louisiana’s prescriptive principles, the Louisiana Court of Appeal for the Third Circuit affirmed the trial court’s grant of exceptions of prescription, finding plaintiff’s claims for fraud, under the Louisiana Unfair Trade Practices Act (LUTPA), and for unpaid royalties all prescribed in Karen May v.

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Louisiana Third Circuit Affirms Dismissal of Royalty and Other Claims Based Upon Prescription

The Energy Law

In a straightforward application of Louisiana’s prescriptive principles, the Louisiana Court of Appeal for the Third Circuit affirmed the trial court’s grant of exceptions of prescription, finding plaintiff’s claims for fraud, under the Louisiana Unfair Trade Practices Act (LUTPA), and for unpaid royalties all prescribed in Karen May v.

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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 Supreme Court Grants Writs from Second Circuit Decision Finding Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Resulting from the Mineral Lessees’ Breach of Contractual and Statutory Obligations

The Energy Law

These applications sought review of the Louisiana Second Circuit’s June 2, 2017 decision affirming the trial court’s ruling that Wells Fargo, a mortgage lender with a security interest in a mineral lease, was solidarily liable with its borrowers (the mineral lessees) for a breach of the mineral lessees’ contractual and statutory obligations to produce (..)

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Haynesville shale gas production is increasing again; Will Haynesville-related litigation increase again, too?

The Energy Law

Although the recent Haynesville production increases are a positive sign for the Louisiana energy industry, the August 2018 daily production average is still below the previous Haynesville peak production average, which was 7.403 billion cubic feet per day in January 2012. For example, in Alyce Gaines Johnson Special Trust v.

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Strong Dissent Warns of “Devastating Economic Repercussions” of Second Circuit’s Decision in Oil & Gas Case

The Energy Law

The defendants will have until September 7, 2017 to seek a writ from the Louisiana Supreme Court. Tauren Exploration, Inc. , A detailed summary of that decision is available here. On August 7, in a 3-2 decision, a panel of five Second Circuit judges denied the defendants’ application for rehearing. Chief Judge Henry Brown, Jr.,

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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

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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