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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 lessees owned working interests in certain oil and gas leases that were executed in 2007.
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.
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 gasroyalties are paid in the future. Devon Energy Production Company, L.P. and several lessors, Michael A. Sheppard, et. Factual Background and Issue.
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.
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.
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.
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. Related to royalty provisions are “free-use clauses” and “off-lease clauses.” Lessees often use gas produced from a leased premises to power those processes.
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. Oil & Gas Co. 2d at 120-21.
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.
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.
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.
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] In Arkansas Louisiana Gas Co. Anglo-Dutch Energy, L.L.C. , 3/2/99), 731 So.2d
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.
In August 2018, dry natural gas production from the Haynesville shale averaged 6.774 billion cubic feet per day, which is the highest daily Haynesville production average since September 2012 when production averaged 6.962 billion cubic feet per day. August 2018 was not an anomaly.
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.
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. BP America Production Company v. Red Deer Resources, LLC In BP America Production Company v.
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.
A vigorous dissent by Judge Bleich warns that, if maintained, the original opinion could have both “[d]evastating economic repercussions” for the lending industry, and “[s]erious and harmful impact on the oil and gas industry.” Tauren Exploration, Inc. , A detailed summary of that decision is available here. Chief Judge Henry Brown, Jr.,
Formed during the Jurassic period, this geological formation has been tapped for oil and gas, as well as brine for production of bromine, since the 1950s. A brine extraction prospect would be very similar to an oil and gas prospect. Recently, several operators have started pilot projects to produce lithium from Smackover brine as well.
Oil and gas related injection wells are considered Class II wells and are regulated by the Underground Injection Control (UIC) program within the Office of Conservation, which has achieved primary enforcement authority under the applicable federal guidelines.
1, 2024), the Fifth Circuit held that an oil-and-gasroyalties 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. As a matter of first impression, in Cheapside Mins.,
In the original Johnson decision, the district court sent shockwaves across the oil and gas industry in Louisiana by finding that post-production costs were not properly deductible against proceeds owed to unleased mineral owners. Chesapeake.
UNOCAL also reserved a 3% overriding royalty. Marubeni Oil & Gas (USA), Inc. , 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. Parker Drilling Co. ,
The Texas Supreme Court recently released its anticipated opinion in Eagle Oil & Gas Co. TRO-X”) and Eagle Oil & Gas Co. Eagle”) regarding their agreement to jointly acquire and sell oil and gas leases. In the first, Eagle Oil & Gas Co. TRO-X, L.P. , 18-0983, 2021 WL 1045723, at *1 (Tex. TRO-X, L.P. ,
The Texas Supreme Court recently released its anticipated opinion in Eagle Oil & Gas Co. TRO-X”) and Eagle Oil & Gas Co. Eagle”) regarding their agreement to jointly acquire and sell oil and gas leases. In the first, Eagle Oil & Gas Co. TRO-X, L.P. , 18-0983, 2021 WL 1045723, at *1 (Tex. TRO-X, L.P. ,
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.
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. 31:210 did not apply, and that the Hills’ argument that La. 31:210 preempts provisions of the Louisiana Civil Code had no merit.
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. 31:210 did not apply, and that the Hills’ argument that La. 31:210 preempts provisions of the Louisiana Civil Code had no merit.
1] The dispute in Johnson involved a group of unleased mineral owners (“UMOs”) who filed suit against a unit operator for deducting a litany of post-production costs against their share of production proceeds from an oil and gas unit in the Haynesville Shale. [2] Chesapeake Louisiana, LP. [1] 2] The UMOs argued that La.
American oil and gas producers may soon be poised to capitalize on this demand, as produced water from some areas contains appreciable levels of dissolved lithium. One such issue is the applicability of an oil, gas and mineral lease to the production and selling of lithium. 1] 26 U.S.C. § 45X(b)(1)(M). [2] 2] 26 U.S.C. § 30D(e)(1). [4]
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. total CO 2 emissions.
Financial Consequences The financial consequences of issuing straight and convertible debt, convertible and non-convertible equity, and equity kickers is complicated and may require the assistance of bankers, accountants and lawyers to determine which technique is the most appropriate for the circumstances.
The SCC Estimate assigned a dollar value on estimated global damages caused by every additional ton of greenhouse gas emitted into the atmosphere by using economic models that capture the impacts of climate change, including rising sea levels, changes to agricultural productivity, water shortages, property damages from increased flood risk, etc.
Doughty of the Western District of Louisiana granted Plaintiff States’ request for an injunction to block the Biden Administration’s pause on new federal oil and gas lease sales (“Lease Pause”). District Judge Terry A. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D. June 15, 2021).
Doughty of the Western District of Louisiana granted Plaintiff States’ request for an injunction to block the Biden Administration’s pause on new federal oil and gas lease sales (“Lease Pause”). District Judge Terry A. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D. June 15, 2021).
Doughty of the Western District of Louisiana granted Plaintiff States’ request for an injunction to block the Biden Administration’s pause on new federal oil and gas lease sales (“Lease Pause”). District Judge Terry A. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D. June 15, 2021).
But the oil and gas industry stands to be impacted regardless of the election outcome in November, and those impacts will have wide-reaching effects on the U.S. oil and gas production, with the former pledging continued expansion of domestic oil and gas drilling and production, and the latter pledging to transition the U.S.
But the oil and gas industry stands to be impacted regardless of the election outcome in November, and those impacts will have wide-reaching effects on the U.S. oil and gas production, with the former pledging continued expansion of domestic oil and gas drilling and production, and the latter pledging to transition the U.S.
But the oil and gas industry stands to be impacted regardless of the election outcome in November, and those impacts will have wide-reaching effects on the U.S. oil and gas production, with the former pledging continued expansion of domestic oil and gas drilling and production, and the latter pledging to transition the U.S.
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