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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

The Energy Law

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.

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The Smackover Formation: Unveiling the Lithium Potential

The Energy Law

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. New advancements in chemical and mechanical extraction techniques have made it possible to separate lithium from brine much more quickly and with lower ecological impact.

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Fifth Circuit to Hold Oral Argument in Sojitz v. UNOCAL in April 2020

The Energy Law

UNOCAL also reserved a 3% overriding royalty. 250, Subpart N, as support for the notion that “BSEE’s primary enforcement mechanisms for violations of the decommissioning regulations are civil fines and criminal penalties,” police powers to which Sojitz cannot subrogate. Marubeni Oil & Gas (USA), Inc. , 3d 558, 563 (5th Cir.

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