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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.
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.
Investing in oil and gasroyalties 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 gasroyalties can provide investors with a source of passive income.
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 gasroyalties 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.
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.
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.
by Elisabeth Lorio Baer Interior Secretary Ken Salazar informed Congress on September 17, 2009 that he would kill a controversial program, currently in effect, that allows energy companies to pay the government royalties for drilling on public lands in actual oil and gas in lieu of cash. For the full story, see [link]
Ross, a mineral interest owner, brought a breach of contract, unjust enrichment, and fraud action against natural gas lessee, Shell. He further alleged that Shell sent him royalty statements containing false representations that the royalties were based on actual sales prices. February 25, 2010, no pet.
The Associated Press reported today that a federal jury found Kerr McGee liable for additional royalties on crude oil produced from federal properties and sold through Texon. Kerr McGee had denied the allegations and claimed that no additional royalties were owed. Kerr McGee has indicated that intends to appeal the verdict.
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.
The depletion allowance is a tax provision in the United States designed to account for the reduction of natural resources, such as oil and gas, as they are extracted and sold. For the oil and gas industry, the depletion allowance functions similarly to depreciation for other types of assets.
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.
The Louisiana Mineral and Energy Board is currently reviewing an incentive proposal that would offer a “royalty relief incentive” on new drilling leases along the Louisiana coast. Specifically, the proposal would offer royalties for a period of three years for wells drilled to a depth of fifteen thousand feet along the coastal zone.
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.
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] In Arkansas Louisiana Gas Co. Anglo-Dutch Energy, L.L.C. , 3/2/99), 731 So.2d
oil and natural gas producing companies should not receive federal subsidies in the form of tax breaks because their businesses contribute to global warming, U.S. The proposed budget would levy an excise tax on oil and gas produced in the Gulf of Mexico, which is expected to raise $5.3 oil and gas supplies. oil and gas supplies.
10] Gloria’s Ranch amended its petition to include a claim for failure to pay royalties on production in Section 15 (from the unit well drilled by Chesapeake). 11] The trial court also found that defendants failed to pay royalties in Section 15 and awarded Gloria’s Ranch the royalties owed plus punitive damages. [12]
In August 2018, dry natural gas production from the Haynesville shale averaged 6.774 billion cubic feet per day, which is the highest daily Haynesville production average since September 2012 when production averaged 6.962 billion cubic feet per day. August 2018 was not an anomaly. Communications include firm news, insights, and events.
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. To receive information from Liskow & Lewis, your information will be kept in a secured contact database.
February 24, 2025 Edition At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. Stay tuned for weekly updates to keep you well-informed. Read m o re US oil and gas rig count hits highest since June, says Baker Hughes Summary : U.S. Brent crude fell 20 cents to $74.23
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. Recently, several operators have started pilot projects to produce lithium from Smackover brine as well.
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.
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. Earlier information about this case can be found here. *In Chesapeake.
On September 2, 2016, the Texas Supreme Court agreed to review three oil and gas cases involving issues pertinent to the industry and land and mineral owners. BP America Production Company v. Red Deer Resources, LLC In BP America Production Company v.
On June 17, 2016, the Texas Supreme Court ruled that an oil and gas producer (“Southwest”) was not entitled to a statutory exemption from sales taxes on its purchases of casing, tubing and pumps used in the production of oil and gas (the “Equipment”). At issue in Southwest Royalties, Inc.
1, 2024), the Fifth Circuit held that an oil-and-gasroyalties 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.,
A vigorous dissent by Judge Bleich warns that, if maintained, the original opinion could have both “[d]evastating economic repercussions” for the lending industry, and “[s]erious and harmful impact on the oil and gas industry.” Tauren Exploration, Inc. , A detailed summary of that decision is available here. Chief Judge Henry Brown, Jr.,
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?
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
UNOCAL also reserved a 3% overriding royalty. Marubeni Oil & Gas (USA), Inc. , To receive information from Liskow & Lewis, your information will be kept in a secured contact database. UNOCAL assigned operating rights in the leases to ATP, who later assigned 20% of those rights to Sojitz. Parker Drilling Co. ,
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. TRO-X, L.P. , 18-0983, 2021 WL 1045723, at *1 (Tex. TRO-X, L.P. ,
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. TRO-X, L.P. , 18-0983, 2021 WL 1045723, at *1 (Tex. TRO-X, L.P. ,
Importantly, the first resolution emphasizes “that the Temporary Moratorium and Resumption Period enacted by this Resolution do not allow an operator or lessee to fail to pay royalties if they continue to obtain production during these times. For more information, contact Jeff Lieberman ( jdlieberman@liskow.com ).
Louisiana Revised Statute 31:210 addresses rental and royalty payments that are owed to parties holding an interest in the leased property when an issue arises as to title. To receive information from Liskow & Lewis, your information will be kept in a secured contact database.
Jinapor highlighted the mining lease for lithium exploitation, emphasizing its global standard with provisions for value addition, increased royalties, and local participation. He cautioned against making sweeping statements about land sales without verifying information from the Lands Commission. Source: Myjoyonline.com
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] Chesapeake Louisiana, LP. [1] 2] The UMOs argued that La.
Louisiana Revised Statute 31:210 addresses rental and royalty payments that are owed to parties holding an interest in the leased property when an issue arises as to title. To receive information from Liskow & Lewis, your information will be kept in a secured contact database.
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 Oil & Gas Corp. , See United States v. 955 F.Supp.2d 2d 616 (E.D.
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