Oil and Gas Lawyer

NOVEMBER 7, 2024

04-23-00106-CV, the San Antonio Court of Appeals was asked to construe a royalty reservation in a 1960 deed: There is saved, excepted and reserved, in favor of the undersigned, B.A. Said interest hereby reserved is Non-Participating Royalty. In Fasken Oil and Ranch, Ltd. Puig, Jr., as his own property free of cost forever. 2d 118 (Tex.

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Aresco

JULY 17, 2024

Investing in oil and gas royalties 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 gas royalties can provide investors with a source of passive income.

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The Energy Law

AUGUST 1, 2007

By Dana Douglas The Louisiana First Circuit Court of Appeal recently held that an operator is not responsible for payment of a non-operator’s royalties and overriding royalties before payout. 6/8/07), the operator completed a well that was plugged and abandoned without reaching payout. In Gulf Explorer, LLC v.

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The Energy Law

JUNE 8, 2020

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. Heritage Resources , 939 S.W.2d

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The Energy Law

MARCH 31, 2021

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.

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The Energy Law

MARCH 7, 2023

In the 1920s—the time the deed at issue was executed—lessors commonly reserved a one-eighth royalty interest when they executed oil and gas leases. That rationale led to the Court’s holding that the mere use of one-eighth in a double fraction is some evidence that the parties were operating under the estate misconception theory.

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The Energy Law

FEBRUARY 22, 2024

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. When parties to an oil and gas lease reserve royalties, they stipulate where those royalties are to be valued—sometimes referred to as the “valuation point”—in the royalty clause.

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The Energy Law

MARCH 31, 2021

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.

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The Energy Law

JUNE 12, 2017

4] In 2007, Fossil Operating, Inc. Fossil”), with whom Tauren contracted to conduct operations on the property, drilled and completed wells on the leased property in Sections 9, 10, and 16. [5] 5] Chesapeake Operating, Inc. (“Tauren”) and contained a three year primary term as well as a horizontal and vertical Pugh clause. [3]

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The Energy Law

JANUARY 12, 2017

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] Anglo-Dutch Energy, L.L.C. , Anglo-Dutch Energy, L.L.C. , Anglo-Dutch Energy, L.L.C. ,

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The Energy Law

JUNE 28, 2018

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.

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The Energy Law

MARCH 31, 2021

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.

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Texas Oil & Gas Attorney

MAY 17, 2024

The Texas Supreme Court recently considered oil and gas leases that involved the interaction of the “free use of gas” clause and the royalty due on gas used off the leased premises. According to the leases, royalties were paid based on the value of gas at the well, and this language allows deduction of post-production expenses.

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Producer's Edge

DECEMBER 3, 2024

Travis Lattner, Jr., “a non-participating royalty of one-fourth (1/4th) of the landowner’s usual one-eighth (1/8th) royalty on oil and gas produced and saved from said land[.]” By way of background, in 1955 J.D. and Elva Arthur conveyed to W. By way of background, in 1955 J.D. and Elva Arthur conveyed to W.

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The Energy Law

APRIL 3, 2023

operate the property leased as a reasonably prudent operator for the mutual benefit of himself and his lessor.” 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.

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Producer's Edge

NOVEMBER 1, 2024

This case presents two critical questions: Who owns subsurface caverns created by salt mining operations, and How should in-kind royalties be calculated for salt production? ” The Fifth Circuit, applying Texas law in  Dunn-McCampbell Royalty Interest, Inc. Part I: The Battle Over Subsurface Storage Rights A.

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The Energy Law

MARCH 26, 2019

District Court for the Western District of Louisiana held that a unit operator may not recover post-production costs from an unleased mineral owner’s share of production proceeds in Allen Johnson, et al. 30:10 governed whether a unit operator may deduct post-production costs against UMO’s share of production proceeds. [3]

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The Energy Law

MARCH 31, 2022

For nearly three years, unit operators in Louisiana have waited to see whether the Western District of Louisiana would change course or double down on its March 2019 decision in Johnson v. BPX Operating Co., Chesapeake. The district court recognized this was a res nova issue for which there was no authority directly on point.

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The Energy Law

SEPTEMBER 23, 2008

Title I addresses the existing moratoria, future OCS access, exploration, production and royalty questions. per MMBtu, unless lease royalties were renegotiated with the Secretary , imposes Conservation of Resources Fee on nonproducing lease acreage of $3.75 House of Representatives passed Speaker Pelosi’s Energy Bill, H.R.

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The Energy Law

MARCH 28, 2022

Like traditional exploration and development, CCUS projects require the operator to secure both the necessary private property rights from landowners as well as regulatory approval from the appropriate administrative agency in order to proceed. In addition to the unit order, the operator must receive approval for its injection wells.

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The Energy Law

MAY 10, 2010

—Tyler 5/5/2010), the Tyler Court of Appeals upheld a trial court’s findings of fact and conclusions of law with respect to the termination of an oil and gas lease for failure to pay shut-in royalty payments to the proper party. Van Hovenberg (“Van Hovenberg”) conveyed by royalty deed to O.B. In 1976, Karin H. In 1976, Karin H.

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The Energy Law

MAY 24, 2007

James Boldrick is an assignee of an overriding royalty interest in property subleased to BTA. Boldrick sued BTA and Chevron/Texaco, seeking monetary damages based upon breach of contract, unjust enrichment and conversion, alleging that his share of the overriding royalty interest was being used to benefit the Defendants.

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The Energy Law

JANUARY 4, 2007

Mary Operating Company v. LEXIS 2750, the Louisiana court of appeal determined that a reservation “all of the minerals underlying or which may be produced from the above described tracts for a period of ten years” was a mineral servitude, not a mineral royalty, and that the servitude was subject to the statutory prescriptive period.

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The Energy Law

MAY 22, 2023

Recently, several operators have started pilot projects to produce lithium from Smackover brine as well. The high lithium concentration in Smackover brines makes this formation the perfect target for operators looking to scale up these newer methods. A brine extraction prospect would be very similar to an oil and gas prospect.

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The Energy Law

JANUARY 4, 2007

The royalty owners intervened and asserted claims against Exxon for, among others, common law waste, statutory waste, negligence per se, tortious interference, and failure to develop. Emerald’s remaining claims were tried with those of the royalty owners (see next section). The Jury awarded the royalty owners: 1. $5

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Producer's Edge

JANUARY 27, 2025

This lease royalty case involved a dispute over whether the lessee was permitted to deduct volumes of gas used off the premises to power post-production activities on other gas produced from the same well. The lease provided for a royalty calculated based on the “market value at the well.” Randle, 620 S.W.3d

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The Energy Law

JUNE 12, 2017

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

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The Energy Law

MARCH 11, 2020

Last year, in another dispute over who should bear the cost of decommissioning offshore facilities, the Southern District of Texas held that a former sub-assignee of offshore operating rights was entitled to equitable subrogation from the record title owner and initial assignor. UNOCAL also reserved a 3% overriding royalty.

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Drillers

MARCH 24, 2020

Recently, the Nigerian government demanded more than $60 billion in back royalties under a production sharing agreement with the supermajors operating in the country. The operator of Egina is China’s CNOOC: Chinese oil companies are expanding internationally, and Nigeria is one of the destinations, despite the challenges.

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Oil Review Middle East

MARCH 11, 2025

Hunting will pay a 15% royalty to the sellers on revenue earned for a period of 15 years, post-completion. This breakthrough technology, which manipulates the resident down-hole ecology, offers operators an easy-to-deploy advanced tertiary oil recovery resulting in increased production and the lowering of lifting costs.

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The Energy Law

JANUARY 6, 2009

While lease terminations are unusual once production occurs (the lease at issue terminated by its own terms for failure to pay royalty within 120 days of first production), the decision is important because of the Court’s construction of the pooling clause that appears in many Texas oil and gas leases. [link]

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Valor

FEBRUARY 24, 2025

Read more 25% royalty rate cap on prime oil and gas land heads to the House Summary : The New Mexico Senate passed Senate Bill 23 in a 21-15 vote, advancing legislation to raise the maximum royalty rate on prime oil and gas land in the Permian Basin from 20% to 25%. The EIA forecasts U.S. crude output to grow from 13.2

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The Energy Law

APRIL 30, 2020

A special meeting of the Louisiana State Mineral and Energy Board was held on April 29, 2020, to address the impacts of both COVID-19 and historically low oil prices on operation and maintenance of Louisiana State Leases. The Board approved two proposed resolutions (1. Proposed Enforcement Moratorium Resolution 2.

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The Energy Law

MARCH 2, 2009

By Natalie Barletta In Retamco Operating, Inc. Retamco Operating sued Paradigm Oil in a Texas district court over unpaid oil and gas royalties. Republic Drilling Co., The trial court entered a $16 million default judgment against Paradigm.

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The Energy Law

SEPTEMBER 21, 2016

On appeal, the Amarillo Court of Appeals agreed with Red Deer, finding that BP could not invoke the lease’s shut-in royalty clause because production from the last well was so slow that production in paying quantities had ceased, and thus the lease terminated, prior to BP shutting the wells in and offering to pay shut-in royalties.

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The Energy Law

JUNE 21, 2016

At issue in Southwest Royalties, Inc. Liskow & Lewis attorneys Butch Marseglia and Jillian Marullo submitted an amicus brief in Southwest Royalties on behalf of EOG Resources, Inc. Thus, because the Equipment was not used to “process” or directly cause the changes to the hydrocarbons, Southwest was not entitled to the exemption.

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Aresco

FEBRUARY 14, 2024

Depletion Allowance Tax Benefit The percentage depletion method is typically more favorable for smaller producers or independent operators, as it allows them to deduct a fixed percentage of gross income without regard to their actual investment in the property. This includes expenses related to exploration, development, and extraction.

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