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Texas Supreme Court Holds that References to “One-Eighth” in Old Oil and Gas Conveyances Presumptively Refer to the Entire Mineral Estate

The Energy Law

According to the Court, the estate-misconception theory was so prevalent in instruments in and around 1924—the time of the deed at issue—that “courts have taken judicial notice of this widespread phenomenon.” In support of that notion, the Court cited the 1957 Texas Supreme Court case Garrett v. Dils Co. , 2d 904 (Tex.

Royalty 98
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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. 035 cents per mcf.

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One Man’s Waste is Another Man’s Treasure: Texas Appellate Court Holds that Produced Water Belongs to Mineral Owners

The Energy Law

In response, the Texas Legislature passed Texas Natural Resources Code § 122.002 on September 1, 2019, which grants title to produced water to whoever takes possession of it for the purpose of treating it for subsequent beneficial use, unless a conveyance instrument expressly provides otherwise.

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The Continued Struggle to Rebut the Van Dyke Presumption

Producer's Edge

Navigator Group that courts interpreting “antiquated instruments” that use 1/8 within a double fraction must begin with the rebuttable presumption that 1/8 refers to the entire mineral estate, Texas courts have wrestled with its implications. This article discusses a couple more cases in 2024. Brunelle, No.

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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

1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was operating. Flat River Farms, L.L.C. , the Louisiana Second Circuit addressed issues affecting the creation and preservation of mineral servitudes and payment of court costs in a concursus action. [1]

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Louisiana First Circuit Applies Subsequent Purchaser Doctrine to Property Transfer Involving Closely Held LLC

The Energy Law

The subsequent purchaser doctrine has been litigated extensively in Louisiana legacy cases involving claims for oilfield remediation. If the transferring instrument does not contain an explicit assignment of the personal right to sue for damages to the property, the right remains with the transferor.”

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Key Issues in OTC Derivatives Contracts as COVID-19 Disrupts Global Financial Markets

The Energy Law

In such cases, hedge counterparties may increase calls for margin and collateral posting both in frequency and amount. Often a default under a derivatives contract qualifies as a cross default to a company’s credit facility or other financial instrument, subject to certain dollar thresholds (if applicable).