The Energy Law Blog

FEBRUARY 28, 2023

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.

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Texas Oil & Gas Attorney

SEPTEMBER 8, 2023

The Texas Supreme Court is going to hear a case in which the issue is whether the interest to be paid on past due royalties is simple or compound interest. In the case of Samson Exploration, LLC v. Bordages, 662 S.W.3d 3d 501 (Tex. App.Beaumont 2022, pet. App.Beaumont 2022, pet.

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Texas Oil & Gas Attorney

JUNE 14, 2024

In a recent case, the Texas Supreme Court considered whether interest on late royalty payments was supposed to be simple or compound interest. When Samson paid previously unpaid royalties to the Plaintiff, it included simple interest. In Samson Exploration, LLC v. Bordages, 662 S.W.3d 3d 501, 2024 (Tex.

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Oil and Gas Lawyer

JANUARY 13, 2025

In 2002 Hahn conveyed the tract to William and Lucille Gips, reserving an undivided one-half non-participating interest in and to all of the royalty [Hahn] now owns (same being an undivided one-half of [Hahn’s] one-fourth or an undivided one-eighth royalty) … Continue reading

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The Energy Law Blog

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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The Energy Law Blog

JUNE 8, 2020

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

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The Energy Law Blog

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. Element Petroleum Props., 11-21-00103-CV (Tex.

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The Energy Law Blog

FEBRUARY 19, 2008

15, 2008), the Texas Supreme Court again addressed the propriety of class actions for gas royalty claims. The class affirmed the denial of two subclasses, but reversed the denial of a third subclass of royalty claimaints. Phillips Petroleum Co. , 03-0824 (Feb.

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The Energy Law Blog

MARCH 31, 2021

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.

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Vorys Energy

FEBRUARY 4, 2022

The Court held that the lessees’ payment of royalties based on amounts they received from sales to their affiliates at the well was proper and followed the language of the lease. By using the netback method to determine those royalties, “Plaintiffs’ royalties are based on the wellhead value of the gas sold.

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The Energy Law Blog

FEBRUARY 22, 2024

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.

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The Energy Law Blog

JANUARY 4, 2007

The Miesch case, set for argument on February 13, is one of two related cases decided by the Corpus Christi Court of Appeals last year. The royalty owners intervened and asserted claims against Exxon for, among others, common law waste, statutory waste, negligence per se, tortious interference, and failure to develop.

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The Energy Law Blog

NOVEMBER 12, 2020

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.

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Vorys Energy

OCTOBER 31, 2022

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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Producer's Edge

DECEMBER 3, 2024

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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The Energy Law Blog

SEPTEMBER 21, 2016

On September 2, 2016, the Texas Supreme Court agreed to review three oil and gas cases involving issues pertinent to the industry and land and mineral owners. is another top-lease case from the Amarillo Court of Appeals. BP America Production Company v. Red Deer Resources, LLC In BP America Production Company v. Laddex, Ltd.

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The Energy Law Blog

JANUARY 12, 2017

the Third Circuit addressed the question of whether or not a mineral lessee must pay its lessor full lease-basis royalties for production undertaken during the effective period of a conditional allowable but prior to the effective date of a unit order. [1] Anglo-Dutch Energy, L.L.C. , Anglo-Dutch Energy, L.L.C. , Anglo-Dutch Energy, L.L.C. ,

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The Energy Law Blog

MARCH 31, 2021

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.

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Texas Oil & Gas Attorney

SEPTEMBER 21, 2024

In 2022, in a case decided by the Corpus Christi Court of Appeals , the issue was who owns the right to use underground salt caverns: the mineral owner or the surface owner? In this case, Myers-Woodward, LLC v. 30, 2024), the Court also considered how a salt royalty should be calculated. granted (Aug. granted (Aug. 2d 686 (Tex.

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The Energy Law Blog

JUNE 28, 2018

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.

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The Energy Law Blog

NOVEMBER 12, 2020

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.

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The Energy Law Blog

JUNE 12, 2017

10] Gloria’s Ranch amended its petition to include a claim for failure to pay royalties on production in Section 15 (from the unit well drilled by Chesapeake). 11] The trial court also found that defendants failed to pay royalties in Section 15 and awarded Gloria’s Ranch the royalties owed plus punitive damages. [12]

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The Energy Law Blog

MARCH 31, 2021

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.

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Producer's Edge

NOVEMBER 1, 2024

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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The Energy Law Blog

APRIL 3, 2023

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.

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The Energy Law Blog

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. CXY Energy, Inc. ,

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The Energy Law Blog

JUNE 18, 2015

The 5-4 decision, authored by Justice Hecht, is the latest in a series of cases from high courts across the country addressing the sharing of “post-production costs” between royalty owners and oil and gas lessees. 14-0302 , was highly anticipated, but left many of us scratching our heads. NationsBank , 939 S.W.2d 2d 118 (Tex.

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The Energy Law Blog

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

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The Energy Law Blog

AUGUST 8, 2017

Tauren Exploration, Inc. , A detailed summary of that decision is available here. On August 7, in a 3-2 decision, a panel of five Second Circuit judges denied the defendants’ application for rehearing.

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The Energy Law Blog

DECEMBER 11, 2007

Faced with competing claims for royalty payments from the PPG and State of Louisiana, Chevron, as sublessee of the 1938 BLD lease, filed a petition for concursus and deposited royalty payments into the court registry. Ultimately, the Fourth Circuit affirmed the trial court’s finding that the State’s claims were barred by res judicata.

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The Energy Law Blog

SEPTEMBER 12, 2008

By Jonathan Hunter: In a highly anticipated decision, the Tenth Circuit held this week that the district court had subject matter jurisdiction over a qui tam action filed by an MMS auditor concerning royalty payments on crude oil produced from offshore federal leases.

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Producer's Edge

JANUARY 27, 2025

In this case, CT Land and Cattle and Cattle Co., Citing two Fifth Circuit cases, CT Land also argued that the burial provision ran with the land, meaning that it could be enforced by successive surface owners. The lease provided for a royalty calculated based on the “market value at the well.”

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Producer's Edge

NOVEMBER 4, 2024

If you're already a valued subscriber to one or both of our existing publications, then rest assured, you'll continue to receive the same high-quality case updates and insightful articles — now through our new ProducersEdge.law domain.  This To mark this launch, we're pleased to share our latest content: Vol.

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The Energy Law Blog

JANUARY 6, 2009

The Texas Supreme Court decided the case on contract construction grounds, deeming the unit to be a pooling of lands under the terms of the agreement, not just leases.

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The Energy Law Blog

MAY 8, 2009

In the past, the State hired outside counsel to pursue claims for allegedly underpaid royalties and severance taxes and paid those outside lawyers on a contingency basis. Challenges were often raised to the contingency fee structure in those cases as violating the Louisiana Supreme Court’s decision in Meredith v. Ieyoub, 96-1110 (La.

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The Energy Law Blog

JUNE 12, 2017

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] in unpaid royalties and an additional double damages penalty of $484,058.52

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The Energy Law Blog

JUNE 21, 2016

On June 17, 2016, the Texas Supreme Court ruled that an oil and gas producer (“Southwest”) was not entitled to a statutory exemption from sales taxes on its purchases of casing, tubing and pumps used in the production of oil and gas (the “Equipment”). At issue in Southwest Royalties, Inc.

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