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billion merger between Viper Energy and Sitio Royalties isn’t just another deal—it’s a signal flare for the entire minerals market. As noted in the recent article on the New Frontier in Minerals and Royalties, “there are just not enough deals to chase compared to the money targeting them.” The headline-grabbing $4.1
Accordingly, auditing of royalty payments was left to the Mineral Board’s internal accountants, and when an issue arose as to whether royalty payments were made correctly, the Mineral Board’s land personnel and internal counsel would oversee sending demands and pursuing litigation against the State’s mineral lessees and well operators.
2023), in which it held that lessees owed royalties in excess of their gross proceeds, specifically “adding back” costs incurred by third-party buyers that were enumerated in the sales contract and subtracted from the sales price. The leases contained the following royalty provisions: 3. Sheppard , — S.W.3d NationsBank”, 939 S.W.2d
million judgment for reimbursement of mineral royalties. million in mineral royalties attributable to ownership of these banks. The Court then pointed to Louisiana Constitution article XII §10(C) and La. State of Louisiana through the Department of Natural Resources , 22-0625 (La. 1/1/23), So. 13:5109(B)(2).
PHX has repeatedly given WhiteHawk the cold shoulder (see our WhiteHawk/PHX articles here). WhiteHawk has been trying to get PHX down the marriage aisle in any way it can for nearly two years. After begging, pleading, threatening, and appealing to shareholders, WhiteHawk has finally done it. WhiteHawk, one.
12/19/07), the court addressed the payment of royalties and penalties under Mineral Code article 212.23(c) c) and concluded that plaintiff’s letters were insufficient to trigger the provisions of that article. Next, the court noted the dearth of reported cases involving Mineral Code articles 212.21-23 at *8 (citing La.
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.
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. 035 cents per mcf.
Sheppard is a royalty dispute between several lessees, Devon Energy Production Co., concerning a novel royalty term that may have a huge impact on the way oil and gas royalties are paid in the future. The royalty clause at issue required the lessees to pay to the lessors 1/5th of the “gross proceeds” as a royalty.
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
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 addition to the estate misconception theory, the Court analyzed the “legacy of the one-eighth royalty.” Dils Co. , 2d 904 (Tex.
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.
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.
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.
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. Those articles set forth the obligations of the “former owner” or “former lessee” to provide written evidence that mineral rights have been extinguished.
Although the bill expressly provides that “[a] renewable energy lease is not a mineral lease,” the proposed legislation contains a number of provisions that are either identical or substantially similar to the Louisiana Mineral Code articles governing mineral leases. An identical provision exists in the Mineral Code.
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.
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.
This article discusses a couple more cases in 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.
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.
First-Quarter Results Gran Tierra reported first-quarter total average working interest before royalties (WI) production of 46,647 barrels of oil equivalent per day (boepd), 14 percent higher than the previous quarter and 45 percent higher year over year.
In my latest article on Producer’s Edge, I explore the Texas Supreme Court’s recent decision in Myers-Woodward v. USM, which discusses two significant issues: the ownership of subsurface caverns and the method of calculating royalties on salt.
This article summarizes the arguments made by the parties, and the Justices' questions and observations at the oral argument. 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? 3d 39 , 47 (Tex.
If you're already a valued subscriber to one or both of our existing publications, then rest assured, you'll continue to receive the same high-quality case updates and insightful articles — now through our new ProducersEdge.law domain. This To mark this launch, we're pleased to share our latest content: Vol.
This article focuses on the latter. Article original published in the Society of Applied Geoscientists and Engineers Magazine, the SAGE MAGE, March 2022, vol. Regulatory approval for CCUS falls under two broad categories. Namely, agency approvals related to enhanced hydrocarbon recovery and those related to geologic sequestration.
A deed reserving a mineral servitude for a period of ten years does not create a ten-year fixed servitude, but instead re-affirms the statutory ten-year prescription of nonuse applicable to mineral servitudes established in article 27 of the Louisiana Mineral Code. Mary Operating Company v. Lester Joseph Champagne , 06-984 (La.
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
1, 2024), the Fifth Circuit held that an oil-and-gas royalties class action belongs in federal court based on its interpretation that the “principal injuries” prong of the CAFA local controversy exception requires all plaintiffs sustain their principal injuries in the forum state. As a matter of first impression, in Cheapside Mins.,
Of particular note is Arkansas’s unique payment structure for bromine production; rather than paying a royalty based on a percentage value for the brine or bromine, producers essentially pay a flat rental per acre to the landowners. Communications include firm news, insights, and events.
This article has been paid for, and issued on behalf of, NexMetals Mining Corp (formerly Premium Resources Ltd.) So the government needs all the employment, taxes and royalties from this asset. The government has a 3% royalty on the Selebi Mine—they are vested in a re-start as quickly as possible! Hopefully, NexMetals is next.
In the interest of full disclosure, the authors of this article served as counsel of record on behalf of an amici group in Johnson, as counsel of record on behalf of the defendants in Self, and as counsel of record on behalf of various Louisiana operators in other lawsuits implicated by Johnson and Self.
UNOCAL also reserved a 3% overriding royalty. Privacy Policy: By subscribing to Liskow & Lewis’ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. UNOCAL assigned operating rights in the leases to ATP, who later assigned 20% of those rights to Sojitz.
for a one-fourth (1/4) mineral royalty and as much as ten thousand ($10,000) dollars per acre bonus royalty.” Privacy Policy: By subscribing to Liskow & Lewis’ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry.
The CEQ report noted that royalty rate reduction credits for carbon capture could potentially create financial incentives for investment and recognized the need to address long-term liability after a storage site has been closed. Communications include firm news, insights, and events.
Rights owners receive payment for minerals (oil and gas for the purpose of this article, but it can include mining of others) that are harvested and sold by producers. Selling mineral rights involves getting money up front instead of receiving a monthly royalty check paid across many years. Why do they sell?
Several years later, Eagle purchased several leases and sold them to Chesapeake Exploration, LLC (“Chesapeake”), reserving an overriding royalty interest and a back-in working interest (the “Interests”). When the suit went to trial, the leases subject to the Chesapeake sale had not generated any royalty income.
Part of the funding for Autazes will come from a royalty agreement with Franco Nevada. That is $1M for the option – the purchase price of the royalty will be based on a 12.5% There is also a 2% royalty that will be paid to the Brazilian government. Note: BRAZIL POTASH has reviewed and sponsored this article.
Importantly, the first resolution emphasizes “that the Temporary Moratorium and Resumption Period enacted by this Resolution do not allow an operator or lessee to fail to pay royalties if they continue to obtain production during these times. Communications include firm news, insights, and events.
Louisiana Revised Statute 31:210 addresses rental and royalty payments that are owed to parties holding an interest in the leased property when an issue arises as to title. 31:210 did not apply, and that the Hills’ argument that La. 31:210 preempts provisions of the Louisiana Civil Code had no merit.
See this valuation chart from the article I wrote on Nexgold a few months ago: The opportunity has been sitting in plain sight for a long time, but Giustra and Lekstrom are making it happen. royalty on Goldboro that Nexgold can re-purchase at their option. Both companies have great deposits, with high grade, infrastructure and permits.
Several years later, Eagle purchased several leases and sold them to Chesapeake Exploration, LLC (“Chesapeake”), reserving an overriding royalty interest and a back-in working interest (the “Interests”). When the suit went to trial, the leases subject to the Chesapeake sale had not generated any royalty income.
Louisiana Revised Statute 31:210 addresses rental and royalty payments that are owed to parties holding an interest in the leased property when an issue arises as to title. 31:210 did not apply, and that the Hills’ argument that La. 31:210 preempts provisions of the Louisiana Civil Code had no merit.
30:10] simply means that, for all of this, he is given the equivalent of a “no cost” royalty clause on production proceeds. Privacy Policy: By subscribing to Liskow & Lewis’ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. A strict construction of [La.
The deed conveyed to the Jameses one-half of the royalties and mineral interests in the property and reserved the other one-half to Gray Investments. Division orders were prepared by Kelley Oil Corporation, a predecessor-in-interest to Samson, and the Jameses began receiving royalties.
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