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“Production in Paying Quantities”: Louisiana Appellate Court Decides When and What Should be Considered in Determination

The Energy Law

APRIL 29, 2016

EP Energy E&P Company, L.P., EP Energy E&P Company, L.P., The Second Circuit next turned to defendants’ second argument: the lower court erred in finding the unitized well failed to produce in paying quantities as the evidence demonstrated that a reasonably prudent operator would have continued production.

Workover

Workover Operator E&P E&A

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

The Energy Law

MARCH 3, 2016

EP Energy E&P Co., First, the court recognized that the plaintiffs’ calculation of expenses included extraordinary expenses for the installation of a compressor and workover operations and instructed that “such nonrecurring expenses are not considered as operating expenses for the purpose of determining production in paying quantities.”

Exploration and Production

Exploration and Production Operator E&P Workover

“Production in Paying Quantities”: Louisiana Appellate Court Decides When and What Should be Considered in Determination

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

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