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Production in Paying Quantities: Maintaining Mineral Leases Beyond Their Primary Terms with Production of Oil or Gas

The Energy Law

4] Paying quantities cases usually focus on what expenses constitute “operating expenses.” “Operating expenses”—or “lifting expenses” as they are sometimes referred—are “ordinary, recurring expenses” that are attributable to the expense of production, after the well is drilled and completed. [5] at 718-19; see also Dore Energy Corp.

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Production in Paying Quantities: Second Circuit Holds Lower Courts Must Consider All Relevant Factors, Not Just Profit

The Energy Law

EP Energy E&P Co., While not particularly groundbreaking, Middleton does provide further guidance to mineral lessees and litigators with respect to the relevant factors and time period considered in a paying quantities case. 50,300-CA (La. Ultimately, the Second Circuit reversed the district court’s judgment on other grounds.

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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

1] In the case, a landowner sued its mineral lessees for: (1) failure to provide a recordable act evidencing the expiration of a mineral lease under Mineral Code articles 206-209 and (2) failure to pay royalties under Mineral Code articles 137-140. [2] The mineral lessees executed credit agreements with Wells Fargo Energy Capital, Inc.

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