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. In support of that notion, the Court cited the 1957 Texas Supreme Court case Garrett v. Eastland June 1, 2021). Dils Co. , 2d 904 (Tex. Element Petroleum Props.,

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Royalty Royalty Interest Instrumentation Gas 98

Producer's Edge

APRIL 30, 2025

Court Interprets “Free of Cost Forever” Royalty Language Broadly In this case ( Fasken Oil & Ranch, Ltd. and Emilia Gutierrez Puig sold their ranch to Palafox Exploration Company while reserving a 1/16th non-participating royalty interest (NPRI) to be paid “free of cost forever.”

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Producer's Edge

APRIL 30, 2025

The Case In this recent case, the Texas Supreme Court resolved whether ratification of a lease or signing of a stipulation agreement could transform a fixed non-participating royalty interest (NPRI) into a floating NPRI. In short, the court held that mere ratification of a lease does not alter a fixed NPRI. 3d 226 (Tex.

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Royalty Instrumentation Royalty Interest Casing 59

The Energy Law

APRIL 19, 2021

18-0983, 2021 WL 1045723, at *1 (Tex. 19, 2021) (“ Eagle II ”). The Eagle II case is the second case that arose between TRO-X, L.P. (“TRO-X”) To establish the res judicata defense, a defendant must demonstrate that the legal injury occurred before the decision was made in the first case ( i.e. , the claim was ripe).

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Royalty Exploration and Production IT Casing 52

Producer's Edge

MAY 19, 2025

2021), the Court reiterated that "the surface owner, and not the mineral lessee, owns the possessory rights to the space under the property's surface." " • The Fifth Circuit similarly held for the surface owner in Dunn-McCampbell Royalty Int., Anadarko E&P Onshore, LLC, 520 S.W.3d 3d 39, 49 (Tex.

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The Energy Law

APRIL 19, 2021

18-0983, 2021 WL 1045723, at *1 (Tex. 19, 2021) (“ Eagle II ”). The Eagle II case is the second case that arose between TRO-X, L.P. (“TRO-X”) TRO-X and Eagle entered into an agreement to buy and sell certain leases, sharing the cash and mineral interest proceeds derived from such sales (the “Agreement”).

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