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Louisiana Legislature to Consider Amendments to Forced Pooling Regime Requiring Operators to Pay Lessors of Nonparticipating Working Interest Owners Directly

The Energy Law

While 30:10 was amended during the 2022 legislative session, the amendment preserved the limited obligation of remitting the royalty and overriding royalty burdens to the nonparticipating owner for the benefit of the royalty and overriding royalty owners.

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Sixth Circuit Court of Appeals Affirms District Court Decision on Royalty Calculations

Vorys Energy

On February 1, 2022, the United States Court of Appeals for the Sixth Circuit affirmed the lower court’s decision in Zehentbauer Family Land, LP, et al. TotalEnergies E&P USA, Inc, et al. By using the netback method to determine those royalties, “Plaintiffs’ royalties are based on the wellhead value of the gas sold.

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With A New Regulatory Framework On The Horizon, There Is Still Much Uncertainty Concerning The Future Of Offshore Carbon Storage

The Energy Law

The two bureaus stated their focus for fiscal year (FY) 2022 would be on the development of regulations to address the IIJA requirement; accordingly, both BOEM and BSEE have budgeted funds for FY 2023 to develop such a framework.

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A Primer on CCUS Regulation in Louisiana

The Energy Law

Enhanced Recovery: Use of carbon dioxide for enhanced hydrocarbon recovery requires the creation of a unit by the Commissioner of Conservation for the purpose of secondary or tertiary recovery under La. However, pilot programs can be available to allow the commencement of an enhanced recovery project prior to creation of the unit. 30:1101-1111).

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Long-Awaited Victory on the Proper Deductibility of Post-Production Costs from Unleased Mineral Owners – The Western District of Louisiana Reverses Course in Johnson v. Chesapeake and Self v. BPX

The Energy Law

Today, on March 31, 2022, the Western District of Louisiana reversed that ruling and applied the same rationale to a pending motion for partial dismissal in one of the putative class actions, Self v. BPX Operating Co., The district court recognized this was a res nova issue for which there was no authority directly on point.

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Supreme Court of Texas Washes Out the “Anadarko Washout”

Producer's Edge

Anadarko E & P Onshore, LLC, 676 S.W.3d Anadarko E& P Onshore, LLC, no. The so called “Anadarko Washout” involves a washout of oil and gas leases on undivided working interests owned by non-operating mineral cotenants. Anadarko Petroleum Corp., 3d 73, 93 (Tex. —El Paso 2019, pet denied)) and Cromwell v.

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The Changing Landscape of Leasing and Minerals

Permian Basin Oil and Gas Magazine

The advantage for minerals firms is that they have no investment in equipment or drilling costs, as do E&Ps. The challenge is that they must still do geological research on formations, and then predict where the E&P is planning to drill. Click here to listen to the Audio verison of this story!

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