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. That rationale led to the Court’s holding that the mere use of one-eighth in a double fraction is some evidence that the parties were operating under the estate misconception theory.

Royalty 98

Royalty Royalty Interest Instrumentation Gas 98

Valor

JUNE 11, 2025

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.

Royalty Interest 52

Royalty Interest Royalty Management Casing 52

The Energy Law

JUNE 8, 2020

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

Royalty 52

Royalty Exploration and Production Downstream Transportation 52

Valor

APRIL 17, 2025

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.

Royalty 71

Royalty Oil Operator Management 71

The Energy Law

MARCH 31, 2021

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.

Royalty 52

Royalty Gas Oil Downstream 52

The Energy Law

FEBRUARY 22, 2024

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.

Royalty 52

Royalty Gas E&A Oil 52

Valor

APRIL 17, 2025

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.

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Royalty Oil Operator Management 64

The Energy Law

APRIL 3, 2023

operate the property leased as a reasonably prudent operator for the mutual benefit of himself and his lessor.” 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.

Government 98

Government Energy Energy Royalty 98

The Energy Law

MARCH 31, 2021

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.

Royalty 40

Royalty Gas Oil Downstream 40

The Energy Law

JUNE 28, 2018

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.

Royalty 40

Royalty E&A Oil Gas 40

The Energy Law

JANUARY 12, 2017

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. ,

Royalty 40

Royalty IT Gas Education 40

The Energy Law

MARCH 28, 2022

Like traditional exploration and development, CCUS projects require the operator to secure both the necessary private property rights from landowners as well as regulatory approval from the appropriate administrative agency in order to proceed. In addition to the unit order, the operator must receive approval for its injection wells.

Underground Injection Control 98

Underground Injection Control Operator Exploration and Production E&A 98

The Energy Law

MAY 22, 2023

Recently, several operators have started pilot projects to produce lithium from Smackover brine as well. The high lithium concentration in Smackover brines makes this formation the perfect target for operators looking to scale up these newer methods. A brine extraction prospect would be very similar to an oil and gas prospect.

Exploration and Production 98

Exploration and Production Operator E&A Mechanic 98

The Energy Law

MARCH 31, 2021

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.

Royalty 52

Royalty Gas Oil Downstream 52

The Energy Law

JUNE 12, 2017

4] In 2007, Fossil Operating, Inc. Fossil”), with whom Tauren contracted to conduct operations on the property, drilled and completed wells on the leased property in Sections 9, 10, and 16. [5] 5] Chesapeake Operating, Inc. (“Tauren”) and contained a three year primary term as well as a horizontal and vertical Pugh clause. [3]

Royalty 40

Royalty E&P Exploration and Production Operator 40

The Energy Law

MARCH 31, 2022

For nearly three years, unit operators in Louisiana have waited to see whether the Western District of Louisiana would change course or double down on its March 2019 decision in Johnson v. BPX Operating Co., Chesapeake. The district court recognized this was a res nova issue for which there was no authority directly on point.

Operator 98

Operator Management E&A Gas 98

Marcellus Shale Coalition

MAY 12, 2025

With access to one of the largest natural gas reserves in the world, the region has seen hundreds of thousands of family-sustaining jobs created across sectors not only in drilling and pipeline operations, but also in manufacturing, construction, engineering, and local service industries.

Natural Gas 104

Natural Gas Gas Royalty Manufacturing 104

Texas Oil & Gas Attorney

MAY 17, 2024

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. According to the leases, royalties were paid based on the value of gas at the well, and this language allows deduction of post-production expenses.

Gas 52

Gas Royalty Oil Operator 52

The Energy Law

NOVEMBER 28, 2022

Another significant issue that will have to be addressed is the liability of operators and lessees or rights holders for potential leaks from offshore CCS projects. Interior is currently conducting ongoing research on various technical and operational issues associated with offshore CCS.

Offshore 105

Offshore Operator Transportation E&A 105

Marcellus Shale Coalition

APRIL 10, 2025

At PIT, our microgrid ensures uninterrupted power even when the grid is down, Joe Broadwater, who oversees the power plant at PITs microgrid operator Cordia, told the Pittsburgh Business Times. The Heathrow failure highlights the importance of resilient infrastructure. Airports are national critical infrastructure.

Gas 116

Gas Natural Gas Royalty Consulting 116

The Energy Law

MARCH 26, 2019

District Court for the Western District of Louisiana held that a unit operator may not recover post-production costs from an unleased mineral owner’s share of production proceeds in Allen Johnson, et al. 30:10 governed whether a unit operator may deduct post-production costs against UMO’s share of production proceeds. [3]

Operator 52

Operator Exploration and Production Casing E&A 52

The Energy Law

MARCH 11, 2020

Last year, in another dispute over who should bear the cost of decommissioning offshore facilities, the Southern District of Texas held that a former sub-assignee of offshore operating rights was entitled to equitable subrogation from the record title owner and initial assignor. UNOCAL also reserved a 3% overriding royalty.

Royalty 52

Royalty E&P E&A Offshore 52

Marcellus Shale Coalition

APRIL 1, 2025

Most notably, PITs cutting-edge microgrid , backed predominately by natural gas, ensures seamless airport operations even in the face of grid failures that cripple other major transportation hubs while keeping energy costs and emissions low.

Natural Gas 98

Natural Gas Gas Manufacturing Royalty 98

The Energy Law

SEPTEMBER 21, 2016

On appeal, the Amarillo Court of Appeals agreed with Red Deer, finding that BP could not invoke the lease’s shut-in royalty clause because production from the last well was so slow that production in paying quantities had ceased, and thus the lease terminated, prior to BP shutting the wells in and offering to pay shut-in royalties.

Casing 52

Casing Gas Oil Royalty 52

Valor

FEBRUARY 24, 2025

Read more 25% royalty rate cap on prime oil and gas land heads to the House Summary : The New Mexico Senate passed Senate Bill 23 in a 21-15 vote, advancing legislation to raise the maximum royalty rate on prime oil and gas land in the Permian Basin from 20% to 25%. The EIA forecasts U.S. crude output to grow from 13.2

Energy 52

Energy Energy Barrel Abandonment 52

The Energy Law

APRIL 30, 2020

A special meeting of the Louisiana State Mineral and Energy Board was held on April 29, 2020, to address the impacts of both COVID-19 and historically low oil prices on operation and maintenance of Louisiana State Leases. The Board approved two proposed resolutions (1. Proposed Enforcement Moratorium Resolution 2.

Maintenance 40

Maintenance Energy Energy Royalty 40

The Energy Law

MARCH 10, 2021

The Hills claim that TMR, and its successor operators, produced and sold minerals from underneath their property without their knowledge or consent. The Hills later added claims against Sunoco, who was the purchaser of oil produced by TMR and the other operators. 31:210 did not apply, and that the Hills’ argument that La.

Oil 52

Oil E&A Royalty Operator 52

The Energy Law

JUNE 21, 2016

At issue in Southwest Royalties, Inc. Liskow & Lewis attorneys Butch Marseglia and Jillian Marullo submitted an amicus brief in Southwest Royalties on behalf of EOG Resources, Inc. Thus, because the Equipment was not used to “process” or directly cause the changes to the hydrocarbons, Southwest was not entitled to the exemption.

Manufacturing 52

Manufacturing Gas Oil Royalty 52

The Energy Law

JUNE 12, 2017

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

Royalty 40

Royalty Exploration and Production Royalty Interest Casing 40

The Energy Law

AUGUST 8, 2017

T]he opinion will have a most chilling effect on the financing of oil and gas operations, which in turn will have an adverse economic effect on government and business in our state. 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.

Casing 40

Casing Gas Oil Royalty 40

Novi

MARCH 11, 2025

Platforms integrated across previously siloed workflows, connecting upstream operations with midstream logistics and downstream analytics. This is no small achievement in a sector where data reliability has long plagued operators and investors alike.

Upstream 52

Upstream Exploration and Production Operator Oil 52

The Energy Law

MARCH 10, 2021

The Hills claim that TMR, and its successor operators, produced and sold minerals from underneath their property without their knowledge or consent. The Hills later added claims against Sunoco, who was the purchaser of oil produced by TMR and the other operators. 31:210 did not apply, and that the Hills’ argument that La.

Oil 40

Oil E&A Exploration and Production Royalty 40

Aresco

NOVEMBER 30, 2023

These costs cover expenses that arent tied to physical equipment but are essential to drilling operations, such as labor, fuel, and site preparation. In this blog, well break down what IDCs are, provide real-world examples, explore their tax treatment, and discuss how excess IDCs could affect your tax strategy.

Exploration and Production 52

Exploration and Production Consulting Professional Services Oil 52

The Energy Law

MARCH 10, 2023

From the moment your alarm on your cell phone goes off in the morning, to using your battery-powered toothbrush, to reading this blog post on your laptop or tablet, lithium makes it all work. For operators hoping to cash in on future developments in lithium extraction, the time to answer these questions is now.

E&P 105

E&P E&A Oil Gas 105

Marcellus Shale Coalition

MARCH 7, 2025

Appalachia producers consistently have the lowest methane emissions intensity of all the basins, underscoring local operators dedication to environmental stewardship. Improved air quality and overall public health are also thanks to natural gas development in the state.

Natural Gas 97

Natural Gas Basin Gas Royalty 97

Marcellus Shale Coalition

MARCH 7, 2025

Appalachia producers consistently have the lowest methane emissions intensity of all the basins, underscoring local operators dedication to environmental stewardship. Improved air quality and overall public health are also thanks to natural gas development in the state.

Natural Gas 52

Natural Gas Basin Gas Royalty 52

The Energy Law

APRIL 7, 2020

The equity for these LLCs is known as “membership interests” but may be referred to in the LLC operating agreement as “units”. Many LLC operating agreements provide for the issuance of additional membership interests or units, but may not provide for the issuance of a different class of membership interests or units.

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Instrumentation Management E&A Finance 40