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Accordingly, auditing of royalty payments was left to the Mineral Board’s internal accountants, and when an issue arose as to whether royalty payments were made correctly, the Mineral Board’s land personnel and internal counsel would oversee sending demands and pursuing litigation against the State’s mineral lessees and well operators.
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
million judgment for reimbursement of mineral royalties. million in mineral royalties attributable to ownership of these banks. As there are no such provisions governing the Crooks plaintiffs’ mineral royalties claims, the legislature has retained its discretion to appropriate funds for those claims. 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.
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.
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.
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.
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.
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.
1, 2024), the Fifth Circuit held that an oil-and-gas royalties class action belongs in federal court based on its interpretation that the “principal injuries” prong of the CAFA local controversy exception requires all plaintiffs sustain their principal injuries in the forum state. Communications include firm news, insights, and events.
Of particular note is Arkansas’s unique payment structure for bromine production; rather than paying a royalty based on a percentage value for the brine or bromine, producers essentially pay a flat rental per acre to the landowners. Communications include firm news, insights, and events.
Communications include firm news, insights, and events. The order creating the unit will also name a unit operator and allocate unit costs in the same proportion that unit production is allocated. To receive information from Liskow & Lewis, your information will be kept in a secured contact database.
Communications include firm news, insights, and events. By using this blog site you understand and acknowledge that there is no attorney client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site.
for a one-fourth (1/4) mineral royalty and as much as ten thousand ($10,000) dollars per acre bonus royalty.” Communications include firm news, insights, and events. In support of its position, Plaintiff argued that its predecessor did not intend to lease the depths at which the Haynesville shale is found.
UNOCAL also reserved a 3% overriding royalty. Communications include firm news, insights, and events. UNOCAL assigned operating rights in the leases to ATP, who later assigned 20% of those rights to Sojitz. UNOCAL retained rights as to certain depths, but never conducted any lease operations whatsoever at any depth.
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”). When the suit went to trial, the leases subject to the Chesapeake sale had not generated any royalty income.
Louisiana Revised Statute 31:210 addresses rental and royalty payments that are owed to parties holding an interest in the leased property when an issue arises as to title. Communications include firm news, insights, and events. 31:210 did not apply, and that the Hills’ argument that La.
Importantly, the first resolution emphasizes “that the Temporary Moratorium and Resumption Period enacted by this Resolution do not allow an operator or lessee to fail to pay royalties if they continue to obtain production during these times. Communications include firm news, insights, and events.
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”). When the suit went to trial, the leases subject to the Chesapeake sale had not generated any royalty income.
Louisiana Revised Statute 31:210 addresses rental and royalty payments that are owed to parties holding an interest in the leased property when an issue arises as to title. Communications include firm news, insights, and events. 31:210 did not apply, and that the Hills’ argument that La.
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. He must still pay all development and operations costs if he is to see economic benefit from the compulsory pooling to which he is subject.
The CEQ report noted that royalty rate reduction credits for carbon capture could potentially create financial incentives for investment and recognized the need to address long-term liability after a storage site has been closed. Communications include firm news, insights, and events.
Communications include firm news, insights, and events. By using this blog site you understand and acknowledge that there is no attorney client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. 1] 26 U.S.C. § 45X(b)(1)(M). [2]
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.
In short, the Plaintiff States would suffer increased energy costs, additional regulatory burdens, violation of their procedural rights, and reduced revenue from taxes and royalties as energy production and exploration slowed. Communications include firm news, insights, and events.
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. 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. 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. at 38-40. (2)
Communications include firm news, insights, and events. By using this blog site you understand and acknowledge that there is no attorney client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site.
Communications include firm news, insights, and events. By using this blog site you understand and acknowledge that there is no attorney client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site.
Communications include firm news, insights, and events. By using this blog site you understand and acknowledge that there is no attorney client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site.
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