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The Louisiana State Mineral & Energy Board (“Mineral Board”) is the body tasked with overseeing the mineral resources owned by the State of Louisiana. Traditionally, these tasks are handled internally by the Mineral Board’s own staff and counsel. A copy of the Mineral Board’s agenda can be found here.
By EDF Blogs By Aaron Wolfe, Ari Pottens , and Scott Seymour EDF economic analysis found that in 2022 oil and gas operators across Alberta wasted $671 million in natural gas, costing the provincial government over $120 million in lost royalties and uncollected corporate taxes.
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.
The Texas Supreme Court recently released its opinion in Devon Energy Production Company, L.P. 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.
Investing in oil and gas royalties involves purchasing the rights to receive a portion of the revenue generated from the production and sale of oil and gas from a particular property or lease. Passive Income : Oil and gas royalties can provide investors with a source of passive income.
By Dana Douglas The Louisiana First Circuit Court of Appeal recently held that an operator is not responsible for payment of a non-operator’sroyalties and overriding royalties before payout. Clayton WIlliams Energy Inc. In Gulf Explorer, LLC v. 2007 WL 1651090 (La.
The Louisiana Legislature’s 2023 Regular Session begins on April 10th, and last Friday, Louisiana Senator Allain of District 21 filed SB 154 proposing to enact a statutory framework directly governing the rights and obligations of parties to renewable energy leases. 122); The lessee of a renewable energy lease would be “bound to.
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. Crude Energy, LLC , 573 S.W.3d
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. That rationale led to the Court’s holding that the mere use of one-eighth in a double fraction is some evidence that the parties were operating under the estate misconception theory.
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.
Hilcorp Energy Company , —F.4th—, 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.” 22-20226, 2024 WL 137038 (5th Cir.
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.
3] Tauren subsequently assigned a 49% interest in the lease to Cubic Energy, Inc. 4] In 2007, Fossil Operating, Inc. Fossil”), with whom Tauren contracted to conduct operations on the property, drilled and completed wells on the leased property in Sections 9, 10, and 16. [5] 5] Chesapeake Operating, Inc.
Anglo-Dutch Energy, L.L.C. , 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. , In Gladney v.
House of Representatives passed Speaker Pelosi’s Energy Bill, H.R. 6899, titled “Comprehensive American Energy Security and Consumer Protection Act.” Title I addresses the existing moratoria, future OCS access, exploration, production and royalty questions.
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.
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.
The Texas Supreme Court recently considered oil and gas leases that involved the interaction of the “free use of gas” clause and the royalty due on gas used off the leased premises. Hilcorp Energy Co., The leases stated that Hilcorp must pay as royalties on gas. for all operations hereunder. 3d , 2024 WL (Tex.
Read more BP to abandon green energy target and ramp up oil Summary : BP will abandon its plan to expand renewable energy generation 20-fold by 2030, scrapping its target of reaching 50 gigawatts (GW) and maintaining its current 8.2 energy exports. The post Valor | Energy Connection Feb. GW capacity.
District Court for the Western District of Louisiana held that a unit operator may not recover post-production costs from an unleased mineral owner’s share of production proceeds in Allen Johnson, et al. 30:10 governed whether a unit operator may deduct post-production costs against UMO’s share of production proceeds. [3]
The pursuit of alternative energy sources has become increasingly important in our quest for a sustainable future. Lithium, a key component in rechargeable batteries, has emerged as a vital element for powering electric vehicles and storing renewable energy. A brine extraction prospect would be very similar to an oil and gas prospect.
For nearly three years, unit operators in Louisiana have waited to see whether the Western District of Louisiana would change course or double down on its March 2019 decision in Johnson v. BPX Operating Co., Chesapeake. The district court recognized this was a res nova issue for which there was no authority directly on point.
Like traditional exploration and development, CCUS projects require the operator to secure both the necessary private property rights from landowners as well as regulatory approval from the appropriate administrative agency in order to proceed. In addition to the unit order, the operator must receive approval for its injection wells.
James Boldrick is an assignee of an overriding royalty interest in property subleased to BTA. Boldrick sued BTA and Chevron/Texaco, seeking monetary damages based upon breach of contract, unjust enrichment and conversion, alleging that his share of the overriding royalty interest was being used to benefit the Defendants.
—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. Van Hovenberg (“Van Hovenberg”) conveyed by royalty deed to O.B. In 1976, Karin H. In 1976, Karin H.
A special meeting of the Louisiana State Mineral and Energy Board was held on April 29, 2020, to address the impacts of both COVID-19 and historically low oil prices on operation and maintenance of Louisiana State Leases. The Board approved two proposed resolutions (1. Proposed Enforcement Moratorium Resolution 2.
Mary Operating Company v. LEXIS 2750, the Louisiana court of appeal determined that a reservation “all of the minerals underlying or which may be produced from the above described tracts for a period of ten years” was a mineral servitude, not a mineral royalty, and that the servitude was subject to the statutory prescriptive period.
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. Emerald’s remaining claims were tried with those of the royalty owners (see next section). The Jury awarded the royalty owners: 1. $5
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
Last year, in another dispute over who should bear the cost of decommissioning offshore facilities, the Southern District of Texas held that a former sub-assignee of offshore operating rights was entitled to equitable subrogation from the record title owner and initial assignor. Sojitz Energy Venture, Inc. Union Oil Co. 3d 687 (S.D.
While lease terminations are unusual once production occurs (the lease at issue terminated by its own terms for failure to pay royalty within 120 days of first production), the decision is important because of the Court’s construction of the pooling clause that appears in many Texas oil and gas leases. [link]
Depletion Allowance Tax Benefit The percentage depletion method is typically more favorable for smaller producers or independent operators, as it allows them to deduct a fixed percentage of gross income without regard to their actual investment in the property. This includes expenses related to exploration, development, and extraction.
On appeal, the Amarillo Court of Appeals agreed with Red Deer, finding that BP could not invoke the lease’s shut-in royalty clause because production from the last well was so slow that production in paying quantities had ceased, and thus the lease terminated, prior to BP shutting the wells in and offering to pay shut-in royalties.
By Natalie Barletta In Retamco Operating, Inc. Retamco Operating sued Paradigm Oil in a Texas district court over unpaid oil and gas royalties. Republic Drilling Co., The trial court entered a $16 million default judgment against Paradigm.
At issue in Southwest Royalties, Inc. Liskow & Lewis attorneys Butch Marseglia and Jillian Marullo submitted an amicus brief in Southwest Royalties on behalf of EOG Resources, Inc. Thus, because the Equipment was not used to “process” or directly cause the changes to the hydrocarbons, Southwest was not entitled to the exemption.
The Hills claim that TMR, and its successor operators, produced and sold minerals from underneath their property without their knowledge or consent. The Hills later added claims against Sunoco, who was the purchaser of oil produced by TMR and the other operators. 31:210 did not apply, and that the Hills’ argument that La.
T]he opinion will have a most chilling effect on the financing of oil and gas operations, which in turn will have an adverse economic effect on government and business in our state. Tauren Exploration, Inc. , A detailed summary of that decision is available here. Chief Judge Henry Brown, Jr.,
These costs cover expenses that arent tied to physical equipment but are essential to drilling operations, such as labor, fuel, and site preparation. IDCs are tax-deductible expenses in the United States and are designed to incentivize domestic energy production. What are intangible drilling costs?
This rule is operative without any formal order. By Joe Giarrusso: In Louisiana, a lawsuit is generally deemed abandoned when the parties fail to take any step in its prosecution for three years.
The Hills claim that TMR, and its successor operators, produced and sold minerals from underneath their property without their knowledge or consent. The Hills later added claims against Sunoco, who was the purchaser of oil produced by TMR and the other operators. 31:210 did not apply, and that the Hills’ argument that La.
In Petro-Chem Operating Co., 1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was operating. 21] Prior to spudding the well, the operator faced weather delays and was required to obtain a CUA permit. [22] Flat River Farms, L.L.C. ,
Recently, when there was talk about Houston-based ATP Oil and Gas’ (ATP) legal problems, it was inevitably about its bankruptcy and its effort to bring the overriding royalty interests it had conveyed back into the bankrupt estate as debt instruments. ATP is the ATP Innovator’s operator and ATP-IP is the platform’s owner. See 40 C.F.R.
(Oil & Gas 360) Publisher’s Note: Whitecap Resources will be presenting at the 30th Anniversary EnerCom Denver-The Energy Investment Conference at the Westin Denver Downtown on August 17-20, 2025. The transaction is expected to close before May 30, 2025. per share, representing a 67% increase in base dividend for Veren shareholders.
Another significant issue that will have to be addressed is the liability of operators and lessees or rights holders for potential leaks from offshore CCS projects. Interior is currently conducting ongoing research on various technical and operational issues associated with offshore CCS.
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