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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 leases contained the following royalty provisions: 3. Sheppard , — S.W.3d NationsBank”, 939 S.W.2d
Sheppard is a royalty dispute between several lessees, Devon Energy Production Co., concerning a novel royalty term that may have a huge impact on the way oil and gas royalties are paid in the future. The royalty clause at issue required the lessees to pay to the lessors 1/5th of the “gross proceeds” as a royalty.
million judgment for reimbursement of mineral royalties. million in mineral royalties attributable to ownership of these banks. The Court distinguished those cases, pointing to constitutional and statutory provisions that mandate appropriation under those specific circumstances. 1/1/23), So.
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.
With the prevalence of cases involving royalty disputes in Texas, the state’s Supreme Court has never hesitated to address these issues. But the Court’s sporadic holdings regarding royalty clauses, each so specific to the particular language of the lease, have left lessees on unsteady footing. Heritage Resources , 939 S.W.2d
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. Element Petroleum Props., 11-21-00103-CV (Tex.
While the Court is no stranger to interpreting (and often muddling) the familiar royalty clause interpretation questions surrounding the first issue, in a case of first impression, the Court also analyzed the breadth of a lease’s free-use clause. after deductions), resulting in lower royalty payments for the royalty owners.
Jan 12, 2024) concerns how three related provisions in an oil and gas lease interact: (1) a royalty clause; (2) a free-use clause; and (3) an off-lease clause. When parties to an oil and gas lease reserve royalties, they stipulate where those royalties are to be valued—sometimes referred to as the “valuation point”—in the royalty clause.
In a straightforward application of Louisiana’s prescriptive principles, the Louisiana Court of Appeal for the Third Circuit affirmed the trial court’s grant of exceptions of prescription, finding plaintiff’s claims for fraud, under the Louisiana Unfair Trade Practices Act (LUTPA), and for unpaid royalties all prescribed in Karen May v.
While the Court is no stranger to interpreting (and often muddling) the familiar royalty clause interpretation questions surrounding the first issue, in a case of first impression, the Court also analyzed the breadth of a lease’s free-use clause. after deductions), resulting in lower royalty payments for the royalty owners.
In a straightforward application of Louisiana’s prescriptive principles, the Louisiana Court of Appeal for the Third Circuit affirmed the trial court’s grant of exceptions of prescription, finding plaintiff’s claims for fraud, under the Louisiana Unfair Trade Practices Act (LUTPA), and for unpaid royalties all prescribed in Karen May v.
hands a victory to financiers of oil and gas operations and settles a long-running controversy over the amount of damages available for failure to pay mineral royalties. in unpaid royalties, plus an additional double damages penalty of $484,058.52. in unpaid royalties, plus an additional double damages penalty of $484,058.52.
Free-Use Clause and Further Interprets Conflicting Royalty Clause Provisions The Texas Supreme Court recently issued its anticipated decision in BlueStone Natural Resources II, LLC v. For almost a decade, the original lessee to the agreements never subtracted post-production costs from the royalty owners’ royalty payments.
When the dispute involves the nonpayment of royalties, the renewable energy lessee would be afforded 30 days to pay the royalties or respond in writing stating a reasonable cause for nonpayment (compare to La. Communications include firm news, insights, and events.
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. CXY Energy, Inc. ,
for a one-fourth (1/4) mineral royalty and as much as ten thousand ($10,000) dollars per acre bonus royalty.” In that case, the plaintiff-lessors argued, the lease should be rescinded based on their error. Communications include firm news, insights, and events. 9/22/10); 48 So. 3d 341, 342-43.
Earlier information about this case can be found here. *In Communications include firm news, insights, and events. Although not yet final, this reversal is long-awaited victory for unit operators in Louisiana. Johnson Ruling Reversing Prior PPC Ruling. Self-Granting of 12b6 Motion to Dismiss.
The Eagle II case is the second case that arose between TRO-X, L.P. (“TRO-X”) Several years later, Eagle purchased several leases and sold them to Chesapeake Exploration, LLC (“Chesapeake”), reserving an overriding royalty interest and a back-in working interest (the “Interests”). TRO-X, L.P. , 19, 2021) (“ Eagle II ”).
The Eagle II case is the second case that arose between TRO-X, L.P. (“TRO-X”) Several years later, Eagle purchased several leases and sold them to Chesapeake Exploration, LLC (“Chesapeake”), reserving an overriding royalty interest and a back-in working interest (the “Interests”). TRO-X, L.P. , 19, 2021) (“ Eagle II ”).
30:10 was inapplicable to the case because the costs outlined in the statute comprised only pre-production and production costs. 30:10] simply means that, for all of this, he is given the equivalent of a “no cost” royalty clause on production proceeds. Communications include firm news, insights, and events.
and Veren’s website at www.vrn.com by selecting “Investors” , then “Presentations & Events”. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties.
Investors are attracted to preferred equity because, in the event the SMB fails and is liquidated, those investors by agreement are repaid after payment of all secured and unsecured creditors and administrative expenses, but before any payments to holders of the common equity of the company.
The Court found that the Plaintiff States demonstrated a substantial threat of irreparable harm due to “reduced funding for bonuses, ground rent, royalties, and rentals,” and “damage for reduced funding” for various state programs. Communications include firm news, insights, and events. Louisiana v. June 15, 2021). at 38-40. (2)
The Court found that the Plaintiff States demonstrated a substantial threat of irreparable harm due to “reduced funding for bonuses, ground rent, royalties, and rentals,” and “damage for reduced funding” for various state programs. Communications include firm news, insights, and events. Louisiana v. June 15, 2021). at 38-40. (2)
The Court found that the Plaintiff States demonstrated a substantial threat of irreparable harm due to “reduced funding for bonuses, ground rent, royalties, and rentals,” and “damage for reduced funding” for various state programs. Communications include firm news, insights, and events. Louisiana v. June 15, 2021). at 38-40. (2)
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