Producer's Edge

MARCH 25, 2025

The lease royalty case Carl v. The lease provided for a royalty calculated based on the “market value at the well.” First, the lessor relied on a portion of the royalty clause indicating that royalty was due “on gas … produced from said land and sold or used off the premises.”

Royalty 52

Royalty Gas Downstream Operator 52

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.

Management 52

Management Royalty Interest Royalty 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

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

JANUARY 4, 2007

The Miesch case, set for argument on February 13, is one of two related cases decided by the Corpus Christi Court of Appeals last year. The royalty owners intervened and asserted claims against Exxon for, among others, common law waste, statutory waste, negligence per se, tortious interference, and failure to develop.

Casing 40

Casing Royalty Abandonment Oil 40

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

Producer's Edge

DECEMBER 3, 2024

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.

Royalty Interest 52

Royalty Interest Royalty Casing Instrumentation 52

The Energy Law

SEPTEMBER 21, 2016

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.

Casing 52

Casing Gas Oil Royalty 52

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 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

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

Producer's Edge

NOVEMBER 1, 2024

The Texas Supreme Court heard oral arguments last week in a case that could substantially clarify, or even fundamentally reshape, the characterization and ownership of underground storage rights in Texas. The case was Myers-Woodward v. The case remains pending before the Texas Supreme Court on petition for review.

Royalty 52

Royalty Royalty Interest Casing Oil 52

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

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

Oil and Gas Investments

NOVEMBER 27, 2024

A WORLD-CLASS MINE Brazil Potash expects Autazes to produce roughly 2.4Mt of potash (MOP) once operating at full capacity enough to satisfy 20% of Brazil’s needs. What’s left is the operating license. Part of the funding for Autazes will come from a royalty agreement with Franco Nevada.

Casing 52

Casing Exploration and Production Royalty Transportation 52

Oil & Gas 360º

MAY 30, 2025

Specifically, the acquisition is accretive on an annualized basis to 2025 EBITDA by 10%, and cash flow from operations and free cash flow by 9%. Accretive financial metrics The transaction is immediately accretive to EOGs net asset value as well as all per-share financial metrics. Forward-looking statements are not guarantees of performance.

Exploration and Production 130

Exploration and Production Natural Gas Crude Oil Energy 130

Producer's Edge

MAY 19, 2025

May 16, 2025), the Texas Supreme Court resolved two significant issues affecting mineral owners and surface owners: (1) who owns the empty caverns created by salt mining operations, and (2) how to calculate royalty payments on produced salt. Despite this substantial production, USM did not pay Myers any royalty.

Royalty 52

Royalty Casing E&A Oil 52

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

Producer's Edge

JUNE 2, 2025

The so called “Anadarko Washout” involves a washout of oil and gas leases on undivided working interests owned by non-operating mineral cotenants. This particular species of lease washouts is based on two recent cases from the El Paso Court of Appeals – Cimarex Energy Co. In a similar case, Cromwell v.

E&P 59

E&P E&A Casing Operator 59

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

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. Tauren Exploration, Inc. , A detailed summary of that decision is available here. Chief Judge Henry Brown, Jr.,

Casing 40

Casing Gas Oil Royalty 40

The Energy Law

MAY 10, 2010

—Tyler 5/5/2010), the Tyler Court of Appeals upheld a trial court’s findings of fact and conclusions of law with respect to the termination of an oil and gas lease for failure to pay shut-in royalty payments to the proper party. The case involved a dispute between the original lessee and a top lessee. In 1976, Karin H.

Royalty 40

Royalty Royalty Interest Casing IT 40

Producer's Edge

JANUARY 27, 2025

In this case, CT Land and Cattle and Cattle Co., Citing two Fifth Circuit cases, CT Land also argued that the burial provision ran with the land, meaning that it could be enforced by successive surface owners. The lease provided for a royalty calculated based on the “market value at the well.”

Royalty 52

Royalty Pipeline Gas Casing 52

The Energy Law

JANUARY 6, 2009

The Texas Supreme Court decided the case on contract construction grounds, deeming the unit to be a pooling of lands under the terms of the agreement, not just leases. The Texas Supreme Court decided the case on contract construction grounds, deeming the unit to be a pooling of lands under the terms of the agreement, not just leases.

Royalty 40

Royalty Casing Operator Oil 40

Oil & Gas 360º

MARCH 10, 2025

Visible Long-Term Synergies: Visible operating, capital and corporate synergies which, in addition to supply chain efficiencies, can generate meaningful savings. Anticipated annual synergies of over $200 million can be achieved independent of commodity prices and will begin to be captured upon closing of the transaction.

Energy 130

Energy Energy Exploration and Production Natural Gas 130

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

JUNE 21, 2016

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.

Manufacturing 52

Manufacturing Gas Oil Royalty 52

Drillers

MARCH 24, 2020

Recently, the Nigerian government demanded more than $60 billion in back royalties under a production sharing agreement with the supermajors operating in the country. The operator of Egina is China’s CNOOC: Chinese oil companies are expanding internationally, and Nigeria is one of the destinations, despite the challenges.

Oil 52

Oil Royalty Exploration and Production Government 52

Permian Basin Oil and Gas Magazine

JUNE 2, 2025

Fewer operators control larger acreages. One case before the Texas Supreme Court was argued on March 18: Cactus Water Services, LLC, v COG Operating, LLC. The courts summary states, This dispute concerns whether the mineral lessee or the surface estate holder owns the produced water from oil and gas operations.

Basin 59

Basin E&A E&P Oil 59

The Energy Law

NOVEMBER 7, 2014

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 royalty interests it had conveyed back into the bankrupt estate as debt instruments. ATP is the ATP Innovator’s operator and ATP-IP is the platform’s owner. See 40 C.F.R.

Offshore 40

Offshore Exploration and Production Government Oil 40

The Energy Law

MARCH 30, 2017

In Petro-Chem Operating Co., 1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was operating. 21] Prior to spudding the well, the operator faced weather delays and was required to obtain a CUA permit. [22]

Spud-in 40

Spud-in Operator IT E&A 40

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.

Instrumentation 40

Instrumentation Management E&A Finance 40

Oil & Gas 360º

MARCH 5, 2025

government and a company that was awarded a license by the NRC, the federal agency that regulates nuclear energy in the United States, to operate a facility in western Texas of a lower courts ruling declaring this storage arrangement unlawful. ” A ruling in the case is expected by the end of June. The Denver-based 10th U.S.

Casing 130

Casing Government Basin Royalty 130