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Production in Paying Quantities: Maintaining Mineral Leases Beyond Their Primary Terms with Production of Oil or Gas

The Energy Law

The sharp decline in oil prices over the past year and a half has had a significant impact on operators and mineral lessees in Louisiana and in other oil-producing states. Mineral lessees may be particularly concerned with whether recent production levels have maintained their leases beyond their primary terms.

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Production in Paying Quantities: Second Circuit Holds Lower Courts Must Consider All Relevant Factors, Not Just Profit

The Energy Law

Since this blog’s post on production in paying quantities on January 26, 2016 , the Louisiana Second Circuit Court of Appeal rendered its latest decision on the subject in Middleton v. Specifically, courts must consider all relevant factors, not just profit, when determining whether production is in paying quantities. 50,300-CA (La.

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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

Tauren Exploration, Inc. , The mortgagee directed the mineral lessees to perform specific workovers and completions on other properties collateralized in the mortgage. In Gloria’s Ranch, L.L.C. 4] $242,029.26 in unpaid royalties and an additional double damages penalty of $484,058.52 6] $936,803.00

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