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The Fifth Circuit Court of Appeals decided an interesting case involving recoupment of overpaid oil and gasroyalties. in royalties since 2016. in royalties since 2016. Equitable recoupment is a commonly accepted remedy in the oil and gas industry. In DDR Weinert, Ltd. Ovintiv USA, Inc. , Naturally, DDR filed suit.
By EDF Blogs By Aaron Wolfe, Ari Pottens , and Scott Seymour EDF economic analysis found that in 2022 oil and gas operators across Alberta wasted $671 million in natural gas, costing the provincial government over $120 million in lost royalties and uncollected corporate taxes.
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 lessees owned working interests in certain oil and gas leases that were executed in 2007.
Now under Senate review, the 1,100+ page bill includes a range of provisions that affect multiple energy sectors, including oil and gas, electric vehicles (EVs), and renewable energy. Contact Are you ready to transform your oil and gas assets? Here’s a factual summary of how the bill intersects with U.S.
In the context of antiquated oil and gas conveyances including a double fraction that includes “one-eighth,” the Court affirmed this principle by holding that such language gives rise to a rebuttable presumption that “one-eighth” refers to the entire mineral estate. Dils Co. , 2d 904 (Tex.
Pennsylvanias economy moves on natural gas and lawmakers must consider the fundamental role of this home-grown energy resource in policies going forward. Heres what he has shared: A Catalyst for Economic Growth Over the past decade, the natural gas industry has been a transformative force in Pennsylvania. The program has provided $2.7
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. granted September 1, 2023) , the lessors executed a number of oil and gas leases with Samson. In the case of Samson Exploration, LLC v. Bordages, 662 S.W.3d 3d 501 (Tex.
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 Taylor Properties, 704 S.W.3d
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 gasroyalties are paid in the future. Devon Energy Production Company, L.P. and several lessors, Michael A. Sheppard, et. Factual Background and Issue.
With a world-class microgrid backed by regionally produced natural gas, travelers through the Pittsburgh International Airport (PIT) can rest assured grid failures wont keep them from reaching their destination. Natural gas isnt just a fuel its the cornerstone of modern energy security. And natural gas is delivering.
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.
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 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.
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.
You cant live in todays modern society without the benefits of natural gas development. Its also enhancing the broader Neighborhood 91 Area the Allegheny County Airport Authority (ACAA)s manufacturing campus by readying the site as a hub for alternative transportation fuels, including Sustainable Aviation Fuel and Compressed Natural Gas.
A mineral lease grants an operator the right to explore for and produce oil, gas, or other minerals from your property. In exchange, you can receive a bonus payment upfront and ongoing royalties from production. Royalty Rate : The percentage of production revenue you’re entitled to. What is a Mineral Lease?
The Texas Supreme Court recently considered oil and gas leases that involved the interaction of the “free use of gas” clause and the royalty due on gas used off the leased premises. The leases stated that Hilcorp must pay as royalties on gas. Hilcorp Energy Co., 3d , 2024 WL (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. Related to royalty provisions are “free-use clauses” and “off-lease clauses.” Lessees often use gas produced from a leased premises to power those processes.
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. Oil & Gas Co. 2d at 120-21.
In response to today’s announcement that Viper Energy, a subsidiary of Diamondback Energy, would acquire Sitio Royalties Corp for $4.1 In response to today’s announcement that Viper Energy, a subsidiary of Diamondback Energy, would acquire Sitio Royalties Corp for $4.1 billion inclusive of net debt. billion in 2022.
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.
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.
The Link Between Oil Prices and Mineral Royalties Mineral royalties are directly tied to the price at which oil and gas are sold, which makes commodity pricing one of the most important factors influencing a mineral owners income. The total gross revenue from that sale becomes the foundation for calculating royalties.
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.
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 Link Between Oil Prices and Mineral Royalties Mineral royalties are directly tied to the price at which oil and gas are sold, which makes commodity pricing one of the most important factors influencing a mineral owners income. The total gross revenue from that sale becomes the foundation for calculating royalties.
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.
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.
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.
The Louisiana Mineral and Energy Board is currently reviewing an incentive proposal that would offer a “royalty relief incentive” on new drilling leases along the Louisiana coast. Specifically, the proposal would offer royalties for a period of three years for wells drilled to a depth of fifteen thousand feet along the coastal zone.
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] In Arkansas Louisiana Gas Co. Anglo-Dutch Energy, L.L.C. , 3/2/99), 731 So.2d
We're excited to announce the launch of ProducersEdge.law , our new consolidated digital platform that brings together the best of McGinnis Lochridge's oil and gas law publications. To mark this launch, we're pleased to share our latest content: Vol. 2: Producers Edge - Fall 2024 Who Owns the Void?
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. USM used the caverns to store hydrocarbons.
Formed during the Jurassic period, this geological formation has been tapped for oil and gas, as well as brine for production of bromine, since the 1950s. A brine extraction prospect would be very similar to an oil and gas prospect. Recently, several operators have started pilot projects to produce lithium from Smackover brine as well.
30, 2024), the Court also considered how a salt royalty should be calculated. Myers owns the surface and a 1/8 royalty in the minerals. appeared first on Texas Oil and Gas Attorney Blog. Underground Services Markham, LLC and United Brine Pipeline Co., 3d , 2022 WL 2163857 (Tex.Civ.App.Corpus ChristiEdinburgh 2022), pet.
In August 2018, dry natural gas production from the Haynesville shale averaged 6.774 billion cubic feet per day, which is the highest daily Haynesville production average since September 2012 when production averaged 6.962 billion cubic feet per day. August 2018 was not an anomaly. Communications include firm news, insights, and events.
Oil and gas related injection wells are considered Class II wells and are regulated by the Underground Injection Control (UIC) program within the Office of Conservation, which has achieved primary enforcement authority under the applicable federal guidelines. 1, issue 1, sagetech.org. Communications include firm news, insights, and events.
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]
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. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.
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.
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.
In the original Johnson decision, the district court sent shockwaves across the oil and gas industry in Louisiana by finding that post-production costs were not properly deductible against proceeds owed to unleased mineral owners. Chesapeake. Communications include firm news, insights, and events.
1, 2024), the Fifth Circuit held that an oil-and-gasroyalties 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.,
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