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
MARCH 15, 2023
The lessees owned working interests in certain oil and gas leases that were executed in 2007. The leases contained the following royalty provisions: 3. Costs incurred by subsequent purchasers, however, would not be included because they were not included in the lessees’ contract at the point of sale.
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