The Energy Law Blog
JULY 1, 2021
Sheppard is a royalty dispute between several lessees, Devon Energy Production Co., concerning a novel royalty term that may have a huge impact on the way oil and gas royalties are paid in the future. The royalty clause at issue required the lessees to pay to the lessors 1/5th of the “gross proceeds” as a royalty.
The Energy Law Blog
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 Blog
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. In addition to the estate misconception theory, the Court analyzed the “legacy of the one-eighth royalty.” Eastland June 1, 2021). Dils Co. , 2d 904 (Tex. Element Petroleum Props.,
The Energy Law Blog
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.
The Energy Law Blog
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.
The Energy Law Blog
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.
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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