Energy, Royalty and Royalty Interest

Ohio Appellate Court Interprets Reservations of NPRIs Involving Double Fractions as Reserving Fixed Royalty Interests

Vorys Energy

JANUARY 2, 2024

Ohio’s Seventh District Court of Appeals recently interpreted two reservations of non-participating royalty interests (NPRIs) involving double fractions, holding that they reserved fixed, rather than floating, royalties. Ohio, LLC , 2023-Ohio-4749.

Royalty Interest

Royalty Interest Royalty

7th District Court of Appeals Issues First Decision Addressing the Enforceability of “Anti-Washout” Provision in Assignments of Overriding Royalty Interests

Vorys Energy

OCTOBER 31, 2022

Ohio’s Seventh District Court of Appeals recently held that an “anti-washout” provision found in multiple assignments of overriding royalty interests covering leases that subsequently expired was not binding on the original lessee’s assignees, which had taken new leases to those same lands, as there was no privity of contract.

Royalty Interest

Royalty Interest Royalty Casing Oil

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

MARCH 15, 2023

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.

Royalty

Royalty Oil Gas Downstream

Investing in Oil and Gas Royalties Explained

Aresco

JULY 17, 2024

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.

Royalty

Royalty Oil Gas Exploration and Production

Texas Supreme Court Holds that References to “One-Eighth” in Old Oil and Gas Conveyances Presumptively Refer to the Entire Mineral Estate

The Energy Law

MARCH 7, 2023

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. Element Petroleum Props., 11-21-00103-CV (Tex.

Royalty

Royalty Oil Gas Royalty Interest

Louisiana Legislature to Consider Amendments to Forced Pooling Regime Requiring Operators to Pay Lessors of Nonparticipating Working Interest Owners Directly

The Energy Law

APRIL 4, 2023

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.

Royalty

Royalty Operator Royalty Interest E&A

Texas Court Subjects Override to Non-Consent Penalties

The Energy Law

MAY 24, 2007

James Boldrick is an assignee of an overriding royalty interest in property subleased to BTA. BTA, the assignor and creator of Boldrick’s interest, elected non-consent status regarding the well at issue, proposed and drilled by Chevron. The District Court granted summary judgment in favor of BTA and Boldrick appealed.

Royalty Interest

Royalty Interest Royalty Division Order IT

Court Addresses Sufficiency of Demand Letter Under Mineral Code Articles 212.21-23

The Energy Law

JANUARY 25, 2008

CXY Energy, Inc. , 12/19/07), the court addressed the payment of royalties and penalties under Mineral Code article 212.23(c) In exchange, the defendant agreed to transfer an overriding royalty interest in the subject prospect to the plaintiff in the event defendant acquired an interest in the prospect. 31:212.21).

Royalty

Royalty Royalty Interest Casing IT

Texas Appeals Court Interprets Mineral Conveyances

The Energy Law

MAY 25, 2007

Morris Resources, Ltd., Hamilton v. Morris Res., 04-05-00904-CV, 2007 WL 460648 (Tex. San Antonio Feb. 14, 2007).

Royalty Interest

Royalty Interest Royalty Oil Gas

Texas Court Upholds Lease Cancellation for Failure to Pay Shut-In Payments To Proper Party

The Energy Law

MAY 10, 2010

—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.

Royalty

Royalty Royalty Interest Oil IT

Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

The Energy Law

JUNE 12, 2017

the Louisiana Second Circuit upheld a trial court’s ruling that the holder of a security interest in mineral leases was solidarily liable for damages under the Louisiana Mineral Code stemming from its mineral lessees/mortgagors’ actions. [1] in unpaid royalties and an additional double damages penalty of $484,058.52 4] $242,029.26

Royalty

Royalty Exploration and Production Royalty Interest Operator

Fifth Circuit Reverses District Court Ruling Protecting Mineral Owner’s Rights of Ingress and Egress Over National Park Service Land

The Energy Law

JANUARY 18, 2011

Dunn-McCampbell Royalty Interest Inc. Nat’l Park Serv. , 09-40187 (5th Cir. The case involved land in the Padre Island National Park, created in 1963. The conflict arose between the National Park Service (“Service”), owner of surface estates, and Plaintiffs who were owners of mineral estates.

Royalty Interest

Royalty Interest Casing Royalty Oil

Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

The Energy Law

APRIL 19, 2021

Factual and Procedural Background TRO-X and Eagle entered into an agreement to buy and sell certain leases, sharing the cash and mineral interest proceeds derived from such sales (the “Agreement”). When the suit went to trial, the leases subject to the Chesapeake sale had not generated any royalty income.

Royalty

Royalty Exploration and Production IT Casing

Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

The Energy Law

APRIL 19, 2021

TRO-X and Eagle entered into an agreement to buy and sell certain leases, sharing the cash and mineral interest proceeds derived from such sales (the “Agreement”). When the suit went to trial, the leases subject to the Chesapeake sale had not generated any royalty income. The jury awarded TRO-X $7,680,000 in damages.

Exploration and Production

Exploration and Production Royalty IT Oil

EPA and BSEE Team Up to Resolve Offshore Environmental Violations

The Energy Law

NOVEMBER 7, 2014

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.

Offshore

Offshore Exploration and Production Oil Government

Emerging on the Other Side of the Coronavirus Pandemic: Raising Structured Capital for Small and Mid-Size Businesses

The Energy Law

APRIL 7, 2020

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.

Instrumentation

Instrumentation E&A Management IT

Energy Aggregated

Ohio Appellate Court Interprets Reservations of NPRIs Involving Double Fractions as Reserving Fixed Royalty Interests

7th District Court of Appeals Issues First Decision Addressing the Enforceability of “Anti-Washout” Provision in Assignments of Overriding Royalty Interests

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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

Investing in Oil and Gas Royalties Explained

Texas Supreme Court Holds that References to “One-Eighth” in Old Oil and Gas Conveyances Presumptively Refer to the Entire Mineral Estate

Louisiana Legislature to Consider Amendments to Forced Pooling Regime Requiring Operators to Pay Lessors of Nonparticipating Working Interest Owners Directly

Texas Court Subjects Override to Non-Consent Penalties

Court Addresses Sufficiency of Demand Letter Under Mineral Code Articles 212.21-23

Texas Appeals Court Interprets Mineral Conveyances

Texas Court Upholds Lease Cancellation for Failure to Pay Shut-In Payments To Proper Party

Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

Fifth Circuit Reverses District Court Ruling Protecting Mineral Owner’s Rights of Ingress and Egress Over National Park Service Land

Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

EPA and BSEE Team Up to Resolve Offshore Environmental Violations

Emerging on the Other Side of the Coronavirus Pandemic: Raising Structured Capital for Small and Mid-Size Businesses

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