If you are involved in a royalty case, or plan to be, read Occidental Permian, Ltd. v. French et al. The appellate court decided there was no evidence to support the trial court’s findings that the lessors were underpaid. (See my too-long December 6 post for the underlying facts.) In this case the plaintiffs were the losers. Takeways (In… Continue Reading
Category Archives: Royalty Disputes
Subscribe to Royalty Disputes RSS FeedUnderpaid Royalty Case Resolved in Favor of Lessee
Posted in Royalty DisputesOne impediment to the correct resolution of lessors’ claims for unpaid royalties is the complexity of the contractual arrangements between producers and purchasers of production. Occidental Permian, Ltd. v. French et al offers a good example. It is also a refresher on the basic rules of royalty calculation in Texas and, for royalty owners in suits for unpaid… Continue Reading
Texas Royalty Owners Beware
Posted in Royalty DisputesRemember the Wilford Brimley character in The Firm? “I get paid to be suspicious when I’ve got nothing to be suspicious about.” Shell Oil Company v. Ross commands you to think like Mr. Brimley. If you suspect your lessee is not paying proper royalties, do not wait to investigate. Even if you don’t suspect anything… Continue Reading
The “single business enterprise” doctrine is alive and well in Louisiana
Posted in Royalty DisputesA lessee, operator, and contract driller were found to be a “single business enterprise” for the purpose of imposing statutory penalties and attorney fees for failure to pay royalties. The principle is that if one corporation is wholly under the control of another, the fact is it is a separate entity does not relieve the… Continue Reading