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Energy & the Law

Tag Archives: proceeds lease

Royalty Clauses For the Lessor – This Battle is Over

Posted in Lease Disputes, Royalty Disputes

What is your guiding principle when writing agreements? “The more the words the less the meaning, and how does that profit anyone?” Ecclesiastes 6:11. or “The beginning of wisdom is the definition of terms.” Socrates The Legal Issue A lease grants “a perpetual, cost-free (except only its portion of production taxes) overriding royalty of five percent …… Continue Reading

Underpaid Royalty Case Resolved in Favor of Lessee

Posted in Royalty Disputes

One 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