Blog, Royalty and Royalty Interest

Texas Supreme Court Holds that Add-Back Provision in Oil and Gas Lease Required Royalties to be Paid on Prices in Excess of the Producers’ Gross Proceeds

The Energy Law

MARCH 15, 2023

2023), in which it held that lessees owed royalties in excess of their gross proceeds, specifically “adding back” costs incurred by third-party buyers that were enumerated in the sales contract and subtracted from the sales price. The lessees owned working interests in certain oil and gas leases that were executed in 2007. 2d 118 (Tex.

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Fixed vs. Floating Royalty Considered by Texas Supreme Court

Texas Oil & Gas Attorney

JUNE 30, 2024

Whether a royalty granted or reserved in a deed is a “fixed” or “floating” royalty has resulted in a lot of litigation in Texas. The Plaintiff sold land to a third party and reserved a 1/8 royalty nonparticipating royalty interest (fixed royalty language). 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

APRIL 4, 2023

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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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

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.” Dils Co. , 2d 904 (Tex.

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Texas Court Subjects Override to Non-Consent Penalties

The Energy Law

MAY 24, 2007

James Boldrick is an assignee of an overriding royalty interest in property subleased to BTA. BTA, the assignor and creator of Boldrick’s interest, elected non-consent status regarding the well at issue, proposed and drilled by Chevron. The District Court granted summary judgment in favor of BTA and Boldrick appealed.

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Court Addresses Sufficiency of Demand Letter Under Mineral Code Articles 212.21-23

The Energy Law

JANUARY 25, 2008

12/19/07), the court addressed the payment of royalties and penalties under Mineral Code article 212.23(c) In exchange, the defendant agreed to transfer an overriding royalty interest in the subject prospect to the plaintiff in the event defendant acquired an interest in the prospect. In CLK Company, L.L.C. 31:212.21).

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Texas Appeals Court Interprets Mineral Conveyances

The Energy Law

MAY 25, 2007

Morris Resources, Ltd., Hamilton v. Morris Res., 04-05-00904-CV, 2007 WL 460648 (Tex. San Antonio Feb. 14, 2007).

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Texas Court Upholds Lease Cancellation for Failure to Pay Shut-In Payments To Proper Party

The Energy Law

MAY 10, 2010

—Tyler 5/5/2010), the Tyler Court of Appeals upheld a trial court’s findings of fact and conclusions of law with respect to the termination of an oil and gas lease for failure to pay shut-in royalty payments to the proper party. Van Hovenberg (“Van Hovenberg”) conveyed by royalty deed to O.B. In 1976, Karin H. In 1976, Karin H.

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Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

The Energy Law

JUNE 12, 2017

the Louisiana Second Circuit upheld a trial court’s ruling that the holder of a security interest in mineral leases was solidarily liable for damages under the Louisiana Mineral Code stemming from its mineral lessees/mortgagors’ actions. [1] in unpaid royalties and an additional double damages penalty of $484,058.52 4] $242,029.26

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Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

The Energy Law

APRIL 19, 2021

Factual and Procedural Background TRO-X and Eagle entered into an agreement to buy and sell certain leases, sharing the cash and mineral interest proceeds derived from such sales (the “Agreement”). When the suit went to trial, the leases subject to the Chesapeake sale had not generated any royalty income.

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Fifth Circuit Reverses District Court Ruling Protecting Mineral Owner’s Rights of Ingress and Egress Over National Park Service Land

The Energy Law

JANUARY 18, 2011

Dunn-McCampbell Royalty Interest Inc. Nat’l Park Serv. , 09-40187 (5th Cir. The case involved land in the Padre Island National Park, created in 1963. The conflict arose between the National Park Service (“Service”), owner of surface estates, and Plaintiffs who were owners of mineral estates.

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Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

The Energy Law

APRIL 19, 2021

TRO-X and Eagle entered into an agreement to buy and sell certain leases, sharing the cash and mineral interest proceeds derived from such sales (the “Agreement”). When the suit went to trial, the leases subject to the Chesapeake sale had not generated any royalty income. The jury awarded TRO-X $7,680,000 in damages.

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EPA and BSEE Team Up to Resolve Offshore Environmental Violations

The Energy Law

NOVEMBER 7, 2014

Recently, when there was talk about Houston-based ATP Oil and Gas’ (ATP) legal problems, it was inevitably about its bankruptcy and its effort to bring the overriding royalty interests it had conveyed back into the bankrupt estate as debt instruments.

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Emerging on the Other Side of the Coronavirus Pandemic: Raising Structured Capital for Small and Mid-Size Businesses

The Energy Law

APRIL 7, 2020

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Texas Supreme Court Holds that Add-Back Provision in Oil and Gas Lease Required Royalties to be Paid on Prices in Excess of the Producers’ Gross Proceeds

Fixed vs. Floating Royalty Considered by Texas Supreme Court

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

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

Texas Court Subjects Override to Non-Consent Penalties

Court Addresses Sufficiency of Demand Letter Under Mineral Code Articles 212.21-23

Texas Appeals Court Interprets Mineral Conveyances

Texas Court Upholds Lease Cancellation for Failure to Pay Shut-In Payments To Proper Party

Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

Fifth Circuit Reverses District Court Ruling Protecting Mineral Owner’s Rights of Ingress and Egress Over National Park Service Land

Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

EPA and BSEE Team Up to Resolve Offshore Environmental Violations

Emerging on the Other Side of the Coronavirus Pandemic: Raising Structured Capital for Small and Mid-Size Businesses

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