Karli v. Wilson instructs mineral/royalty traders and their scriveners on a surefire way to create title chaos out of what could have been an uncomplicated land transaction. In 1950 the Wilson siblings and spouses executed a warranty deed to the Veterans Land Board for 196.7 acres in Brazos County, Texas. The Karlis now own
For an example of a case gone wrong in so many ways, look no further than Evans Resources LP et al v. Diamondback E & P.
The facts
There were three agreements between several Evans entities and Diamondback for Evans‘ 651 acres in Midland County, Texas: An oil and gas lease allowing pooling with
City of Crowley v. TotalEnergies E&P USA, is a post-production cost (PPC) case with a predictable result. The Fort Worth Court of Appeals confirmed its reasoning in Shirlaine W. Props. Ltd. v. Jamestown Res., L.L.C from 2021, that under a market-value oil and gas lease, gas sold at the wellhead means
Dow Construction, LLC v. BPX Operating Company resolved a bundle of issues arising out of a drilling unit established by the Louisiana Commissioner of Conservation: who has the right to a drilling cost report, the operator’s right to deduct post-production costs, forfeiture of the operator’s right to reimbursement of drilling costs, and prescription.
The facts
The takeaway from DDR Weinert, Limited et al v. Ovintiv USA Inc. is that equitable recoupment rescued a royalty payor from its mistaken payment of royalties. But first,
The events.
The Richters were mineral lessors in land in Karnes County. In 2016 lessee Ovintiv mistakenly adjusted gas flow on the property resulting in
In Myers-Woodward, LLC v. Underground Services Markham, LLC et al, (discussed previously) the parties disagreed on how to calculate Myers’ royalty on salt produced by Underground.
The facts
The 1947 mineral deed reserved to Myers “a perpetual one eighth (1/8th) royalty on all oil that may be produced and saved from”
Boren Descendants et al v. Fasken Oil and Ranch, LTD, offers something to talk about beyond interpretation of the fixed-or-floating NPRI question. At issue was this reservation, expressed as a double fraction, in a 1933 deed:, “an undivided … 1/4th of the usual … 1/8th royalty” from a conveyance of real property”.
The
After four stops at the lower courts, Kenneth Hahn v. ConocoPhillips has been resolved by the Supreme Court of Texas. The Court opined on the effect of two instruments often used to clarify land titles in Texas: ratifications of an oil and gas lease and stipulations of interests.
Fasken Ranch Ltd et al v. Puig et al featured a reservation in the sale of a ranch of an undivided 1/16 non-participating royalty interest “free of cost forever.” What does that mean? In particular, does it mean that the royalty owners must bear their share of post-production costs? The answer is No. Read