Louisiana Operators Are Not Responsible For Making Non-Participants’ Royalty Payments Before Payout
The Energy Law
AUGUST 1, 2007
By Dana Douglas The Louisiana First Circuit Court of Appeal recently held that an operator is not responsible for payment of a non-operator’s royalties and overriding royalties before payout. In Gulf Explorer, LLC v. 6/8/07), the operator completed a well that was plugged and abandoned without reaching payout.
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