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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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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 Blog

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 support of that notion, the Court cited the 1957 Texas Supreme Court case Garrett v. Dils Co. , 2d 904 (Tex. Element Petroleum Props., 11-21-00103-CV (Tex.

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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 Blog

The current proposed bill, however, would require operators to remit all royalty payments directly to the lessors on behalf of nonparticipating working interest owners prior to well payout, i.e., during the recoupment of costs, and the statutorily authorized risk charge.

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

The Energy Law Blog

CXY Energy, Inc. , 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. 31:212.21).

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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 Blog

Dunn-McCampbell Royalty Interest Inc. The case involved land in the Padre Island National Park, created in 1963. Nat’l Park Serv. , 09-40187 (5th Cir.

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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

The Energy Law Blog

The Texas Supreme Court recently released its opinion in Devon Energy Production Company, L.P. 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.

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

The Energy Law Blog

—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. The case involved a dispute between the original lessee and a top lessee. In 1976, Karin H.

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