article thumbnail

Early Shut In Royalty Payment Held to be Valid to Extend Lease

Texas Oil & Gas Attorney

3d 544 (2024) , the Texas Supreme Court addressed a case where the Plaintiff claimed that two leases had terminated because a shut in royalty payment was made late. The leases in question had a pretty standard shut in royalty clause that allowed a payment of $50.00 Production on the only well ceased in September 2017.

Royalty 52
article thumbnail

Louisiana Third Circuit Affirms Dismissal of Royalty and Other Claims Based Upon Prescription

The Energy Law

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.

Royalty 52
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Louisiana Third Circuit Affirms Dismissal of Royalty and Other Claims Based Upon Prescription

The Energy Law

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.

Royalty 40
article thumbnail

Louisiana Second Circuit Provides Clarity on Production in Paying Quantities and Affirms Lease Cancellation Under Mineral Code Article 140 for Failure to Pay Royalties

The Energy Law

On June 2, 2017 the Louisiana Second Circuit Court of Appeal affirmed a trial court’s judgment cancelling a mineral lease under Mineral Code article 140 and provided further clarity on a production in paying quantities analysis under Louisiana Mineral Code article 124. [1] 1] The dispute in Gloria’s Ranch, L.L.C. Tauren Exploration, Inc.

Royalty 40
article thumbnail

Texas Supreme Court: Shut-In Check Notations Don’t Rewrite Leases

Producer's Edge

31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous lease provision regarding the timing and effect of shut-in payments. The dispute arose from two leases containing identical shut-in royalty provisions. Taylor Properties , No. 23-1014, 2024 WL 5249490 [Tex.

Casing 52
article thumbnail

When Contract Language Costs Millions: Court Strikes Down Post-Closing Assignment 'Corrections'

Producer's Edge

the El Paso Court of Appeals reversed a trial court's summary judgment and held that post-closing "corrections" to overriding royalty assignments were invalid and unenforceable against a subsequent purchaser. Callon acquired and recorded its ownership interest in August 2017. —El Paso Jan. 28, 2025, no pet.

article thumbnail

Who Owns the Void? Oral Arguments at SCOTX Regarding Underground Storage Rights

Producer's Edge

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? 2017), where the Court emphasized that “the surface owner owns and controls the mass of earth undergirding the surface.” 3d 39 , 47 (Tex.

Royalty 52