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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 gas royalties 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 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.
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.
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.
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.
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.
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.
Oil, gas, and other minerals that have not been extracted from the ground are treated as real property, to which the Texas UCC does not apply. This is particularly important in the event of the first purchaser's bankruptcy. Real property is not subject to the Texas UCC. Instead, the property laws of Texas govern perfection.
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.
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. Communications include firm news, insights, and events.
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. 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. As a matter of first impression, in Cheapside Mins.,
Intangible Drilling Costs (IDCs) play a crucial role in oil and gas investments, offering significant tax advantages that can enhance profitability for investors. Intangible Drilling Costs (IDC) are a critical element of the financial landscape in the oil and gas industry. What are intangible drilling costs?
A recent decision from the Louisiana First Circuit Court of Appeal may have lasting effects on good faith purchasers of oil. The Hills later added claims against Sunoco, who was the purchaser of oil produced by TMR and the other operators. Communications include firm news, insights, and events.
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. Communications include firm news, insights, and events. Chesapeake.
Union Oil Co. UNOCAL also reserved a 3% overriding royalty. Marubeni Oil & Gas (USA), Inc. , Communications include firm news, insights, and events. Sojitz Energy Venture, Inc. of California , 394 F. 3d 687 (S.D. The only lessee of the Outer Continental Shelf leases at issue in Sojitz was UNOCAL. 3d 558, 563 (5th Cir.
A recent decision from the Louisiana First Circuit Court of Appeal may have lasting effects on good faith purchasers of oil. The Hills later added claims against Sunoco, who was the purchaser of oil produced by TMR and the other operators. Communications include firm news, insights, and events.
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.
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. Communications include firm news, insights, and events.
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. Communications include firm news, insights, and events.
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. Communications include firm news, insights, and events. The Board approved two proposed resolutions (1.
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] Communications include firm news, insights, and events.
(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. million acres in Alberta.
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. Communications include firm news, insights, and events.
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. total CO 2 emissions.
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. Conclusion.
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”). Communications include firm news, insights, and events. District Judge Terry A. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D.
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”). Communications include firm news, insights, and events. District Judge Terry A. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D.
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”). Communications include firm news, insights, and events. District Judge Terry A. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D.
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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