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The Fifth Circuit Court of Appeals decided an interesting case involving recoupment of overpaid oil and gas royalties. in royalties since 2016. in royalties since 2016. In DDR Weinert, Ltd. Ovintiv USA, Inc. , 23-50479, 2025 WL 636315 (5th Cir. 27, 2025), a family named Richter owned four tracts in Karnes County, Texas.
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 distinguished those cases, pointing to constitutional and statutory provisions that mandate appropriation under those specific circumstances. 1/1/23), So.
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.
The Texas Supreme Court is going to hear a case in which the issue is whether the interest to be paid on past due royalties is simple or compound interest. In the case of Samson Exploration, LLC v. Bordages, 662 S.W.3d 3d 501 (Tex. App.Beaumont 2022, pet.
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.
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 In Scout Energy Management, LLC v. Taylor Properties, 704 S.W.3d
In a recent case, the Texas Supreme Court considered whether interest on late royalty payments was supposed to be simple or compound interest. When Samson paid previously unpaid royalties to the Plaintiff, it included simple interest. In Samson Exploration, LLC v. Bordages, 662 S.W.3d 3d 501, 2024 (Tex.
Whether a royalty granted or reserved in a deed is a “fixed” or “floating” royalty has resulted in a lot of litigation in Texas. The Plaintiff sold land to a third party and reserved a 1/8 royalty nonparticipating royalty interest (fixed royalty language). ConocoPhillips Co.,
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. Element Petroleum Props., 11-21-00103-CV (Tex.
Whether you own a single royalty interest or manage a large mineral portfolio, title curative work is essential to ensuring your ownership is properly documented and revenue flows without delay. Without it, operators may not pay royalties, you may not receive tax notices, and your asset’s value could be diminished.
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 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.
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.
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.
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. Liskow & Lewis attorneys will be monitoring this bill through this legislative session.
On September 2, 2016, the Texas Supreme Court agreed to review three oil and gas cases involving issues pertinent to the industry and land and mineral owners. is another top-lease case from the Amarillo Court of Appeals. BP America Production Company v. Red Deer Resources, LLC In BP America Production Company v. Laddex, Ltd.
In 2022, in a case decided by the Corpus Christi Court of Appeals , the issue was who owns the right to use underground salt caverns: the mineral owner or the surface owner? In this case, Myers-Woodward, LLC v. 30, 2024), the Court also considered how a salt royalty should be calculated. granted (Aug. granted (Aug. 2d 686 (Tex.
In this case, the lessee, Underground Services (“USM”) owned the mineral estate, and Myers owned the surface and a 1/8 royalty in all the minerals. USM sued Myers, seeking declaratory relief regarding the royaltys calculation and the right to use the underground salt caverns. May 16, 2025).
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. 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.
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.
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. ,
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.
10] Gloria’s Ranch amended its petition to include a claim for failure to pay royalties on production in Section 15 (from the unit well drilled by Chesapeake). 11] The trial court also found that defendants failed to pay royalties in Section 15 and awarded Gloria’s Ranch the royalties owed plus punitive damages. [12]
By using this blog site you understand and acknowledge that there is no attorney client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. Tauren Exploration, Inc. , A detailed summary of that decision is available here.
This new website combines the content you've come to trust from both our print newsletter (Producers Edge) and our former blog (OilandGasLawDigest.com) into one comprehensive online resource. To mark this launch, we're pleased to share our latest content: Vol. 2: Producers Edge - Fall 2024 Who Owns the Void?
Earlier information about this case can be found here. *In By using this blog site you understand and acknowledge that there is no attorney client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site.
for a one-fourth (1/4) mineral royalty and as much as ten thousand ($10,000) dollars per acre bonus royalty.” In that case, the plaintiff-lessors argued, the lease should be rescinded based on their error. 9/22/10); 48 So. 3d 341, 342-43. Communications include firm news, insights, and events.
On June 17, 2016, the Texas Supreme Court ruled that an oil and gas producer (“Southwest”) was not entitled to a statutory exemption from sales taxes on its purchases of casing, tubing and pumps used in the production of oil and gas (the “Equipment”). At issue in Southwest Royalties, Inc.
The Eagle II case is the second case that arose between TRO-X, L.P. (“TRO-X”) 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”). TRO-X, L.P. , 19, 2021) (“ Eagle II ”).
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
30:10 was inapplicable to the case because the costs outlined in the statute comprised only pre-production and production costs. 30:10] simply means that, for all of this, he is given the equivalent of a “no cost” royalty clause on production proceeds. As of the posting of this blog entry, the delays for appeal have yet to expire. [2]
The Eagle II case is the second case that arose between TRO-X, L.P. (“TRO-X”) 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”). TRO-X, L.P. , 19, 2021) (“ Eagle II ”).
Preferred equity in these cases usually includes the right to vote for directors of a corporation or managers of an LLC. In many cases, the investors in preferred equity will require representation on the board of directors for an SMB organized as a corporation or the board of managers for an SMB organized as an LLC.
The Court found that the Plaintiff States demonstrated a substantial threat of irreparable harm due to “reduced funding for bonuses, ground rent, royalties, and rentals,” and “damage for reduced funding” for various state programs. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D. June 15, 2021). at 38-40. (2)
The Court found that the Plaintiff States demonstrated a substantial threat of irreparable harm due to “reduced funding for bonuses, ground rent, royalties, and rentals,” and “damage for reduced funding” for various state programs. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D. June 15, 2021). at 38-40. (2)
The Court found that the Plaintiff States demonstrated a substantial threat of irreparable harm due to “reduced funding for bonuses, ground rent, royalties, and rentals,” and “damage for reduced funding” for various state programs. Louisiana v. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D. June 15, 2021). at 38-40. (2)
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