The Energy Law

MARCH 31, 2021

19-0459, 2021 WL 936175 (Tex. While the Court is no stranger to interpreting (and often muddling) the familiar royalty clause interpretation questions surrounding the first issue, in a case of first impression, the Court also analyzed the breadth of a lease’s free-use clause.

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The Energy Law

MARCH 7, 2023

In the 1920s—the time the deed at issue was executed—lessors commonly reserved a one-eighth royalty interest when they executed oil and gas leases. That rationale led to the Court’s holding that the mere use of one-eighth in a double fraction is some evidence that the parties were operating under the estate misconception theory.

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The Energy Law

FEBRUARY 22, 2024

Jan 12, 2024) concerns how three related provisions in an oil and gas lease interact: (1) a royalty clause; (2) a free-use clause; and (3) an off-lease clause. When parties to an oil and gas lease reserve royalties, they stipulate where those royalties are to be valued—sometimes referred to as the “valuation point”—in the royalty clause.

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The Energy Law

MARCH 31, 2021

19-0459, 2021 WL 936175 (Tex. While the Court is no stranger to interpreting (and often muddling) the familiar royalty clause interpretation questions surrounding the first issue, in a case of first impression, the Court also analyzed the breadth of a lease’s free-use clause. Factual and Procedural Background.

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The Energy Law

MARCH 31, 2021

Free-Use Clause and Further Interprets Conflicting Royalty Clause Provisions The Texas Supreme Court recently issued its anticipated decision in BlueStone Natural Resources II, LLC v. 19-0459, 2021 WL 936175 (Tex. In 2006, however, BlueStone acquired the lease and became responsible for paying royalties on production thereunder.

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Producer's Edge

JANUARY 27, 2025

This lease royalty case involved a dispute over whether the lessee was permitted to deduct volumes of gas used off the premises to power post-production activities on other gas produced from the same well. The lease provided for a royalty calculated based on the “market value at the well.” Randle, 620 S.W.3d

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The Energy Law

MARCH 10, 2021

TMR Exploration, Inc , 2021 WL 267916, the First Circuit affirmed a district court ruling on summary judgment applying the good faith purchaser defense provision set forth in La. The Hills claim that TMR, and its successor operators, produced and sold minerals from underneath their property without their knowledge or consent.

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