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7th District Court of Appeals Issues First Decision Addressing the Enforceability of “Anti-Washout” Provision in Assignments of Overriding Royalty Interests

Vorys Energy

Ohio’s Seventh District Court of Appeals recently held that an “anti-washout” provision found in multiple assignments of overriding royalty interests covering leases that subsequently expired was not binding on the original lessee’s assignees, which had taken new leases to those same lands, as there was no privity of contract.

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Fixed vs. Floating Royalty Considered by Texas Supreme Court

Texas Oil & Gas Attorney

3d , 2022 WL 17351596 (Tex.Civ.App.Corpus Christi 2022, pet. The Plaintiff sold land to a third party and reserved a 1/8 royalty nonparticipating royalty interest (fixed royalty language). The Corpus Christi Court of Appeals considered the issue again in Hahn v. ConocoPhillips Co.,

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Louisiana Legislature to Consider Amendments to Forced Pooling Regime Requiring Operators to Pay Lessors of Nonparticipating Working Interest Owners Directly

The Energy Law

While 30:10 was amended during the 2022 legislative session, the amendment preserved the limited obligation of remitting the royalty and overriding royalty burdens to the nonparticipating owner for the benefit of the royalty and overriding royalty owners.

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