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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 context of antiquated oil and gas conveyances including a double fraction that includes “one-eighth,” the Court affirmed this principle by holding that such language gives rise to a rebuttable presumption that “one-eighth” refers to the entire mineral estate. Dils Co. , 2d 904 (Tex. Dawkins , 483 S.W.3d Element Petroleum Props.,

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The Continued Struggle to Rebut the Van Dyke Presumption

Producer's Edge

This article discusses a couple more cases in 2024. In each of these cases, one side successfully argued that the Van Dyke presumption applied, and the other side unsuccessfully argued that it was rebutted. Many anticipate that double-fraction cases will continue to steadily flow through Texas courts for the foreseeable future.

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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

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.

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Fixed vs. Floating Royalty Considered by Texas Supreme Court

Texas Oil & Gas Attorney

The Plaintiff sold land to a third party and reserved a 1/8 royalty nonparticipating royalty interest (fixed royalty language). The Court of Appeals reversed and held that the stipulation of interest should not be considered, and that the Plaintiff owned a 1/8 fixed royalty. ConocoPhillips Co.,

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Who Owns the Void? Oral Arguments at SCOTX Regarding Underground Storage Rights

Producer's Edge

The Texas Supreme Court heard oral arguments last week in a case that could substantially clarify, or even fundamentally reshape, the characterization and ownership of underground storage rights in Texas. The case was Myers-Woodward v. The case remains pending before the Texas Supreme Court on petition for review.

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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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