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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. Texas courts refer to this phenomenon as the “estate-misconception” theory.
Navigator Group that courts interpreting “antiquated instruments” that use 1/8 within a double fraction must begin with the rebuttable presumption that 1/8 refers to the entire mineral estate, Texas courts have wrestled with its implications. Following the Texas Supreme Court’s ruling in Van Dyke v.
Gloria’s Ranch ultimately filed suit against Tauren, Cubic, EXCO, and Wells Fargo for their failure to provide a recordable instrument evidencing the expiration of the lease. 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).
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
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. 362(b)(4).
14] The Second Circuit’s decision in regard to this issue does not represent a departure from the viewpoint that most in the oil and gas industry have towards notarial acts of correction. 31] However, the Court recognized that the operator routinely obtained permits as part of its operations. [32] However, art.
(Oil & Gas 360) Publisher’s Note: Whitecap Resources will be presenting at the 30th Anniversary EnerCom Denver-The Energy Investment Conference at the Westin Denver Downtown on August 17-20, 2025. Refer to Barrel of Oil Equivalency and Production & Product Type Information in this press release for additional disclosure.
This article briefly describes four structured capital raising techniques that may be available to meet those needs: (1) convertible debt instruments; (2) convertible or non-convertible preferred equity instruments; (3) preferred limited partnership interests; and (4) debt instruments issued with “equity kickers”.
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