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Whether you own a single royaltyinterest or manage a large mineral portfolio, title curative work is essential to ensuring your ownership is properly documented and revenue flows without delay. These defects can include missing documents, unreleased liens, outdated probate records, or improperly executed deeds.
This article discusses a couple more cases in 2024. In each of these cases, one side successfully argued that the Van Dyke presumption applied, and the other side unsuccessfully argued that it was rebutted. Many anticipate that double-fraction cases will continue to steadily flow through Texas courts for the foreseeable future.
The Case In this recent case, the Texas Supreme Court resolved whether ratification of a lease or signing of a stipulation agreement could transform a fixed non-participating royaltyinterest (NPRI) into a floating NPRI. In short, the court held that mere ratification of a lease does not alter a fixed NPRI.
From this line of cases, the Court concluded that “we consider Texas law reasonably clear that underground storage space generally belongs to the surface owner absent a contrary agreement.” United States, 412 F.2d 2d 1319, 1323 (Ct. First, USM did not own the salt formations—only the salt itself.
Recently, when there was talk about Houston-based ATP Oil and Gas’ (ATP) legal problems, it was inevitably about its bankruptcy and its effort to bring the overriding royaltyinterests it had conveyed back into the bankrupt estate as debt instruments.
The existing equity for corporations is represented by shares of stock, and the issuance of additional shares of stock typically is addressed in the certificate of formation, by-laws, articles of incorporation or other organizational documents. Finally, there are SMBs organized as limited partnerships under state law.
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