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

The Energy Law Blog

Mineral lessees may be particularly concerned with whether recent production levels have maintained their leases beyond their primary terms. In Louisiana, as in most jurisdictions, production of oil or gas must be in “paying quantities” to maintain a mineral lease beyond its primary term. [1] McKinney , 545 So. 2d 1216, 1220 (La.

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

The Energy Law Blog

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 Blog

Tauren Exploration, Inc. , The mortgagee directed the mineral lessees to perform specific workovers and completions on other properties collateralized in the mortgage. Tauren Exploration, Inc., The Lease, which contained vertical and horizontal Pugh clauses was originally granted to Tauren Exploration, Inc. 51, 077 (La.

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