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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

On the other hand, if those contracts do not specify how the sales price was calculated, then the narrow holding in Sheppard arguably does not apply, meaning producers, in such a case, should value royalties based on the gross proceeds realized at the point of sale.

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