After reading Devon Energy Production Company, L.P. v. Oliver if you’ recall a similar post-production cost dispute, it was last week. And the result was the same. Royalties under this lease are to be calculated at the wellhead (where there are no PPC’s) and not on a downstream market price
In Fasken Oil and Ranch, Ltd. v. Puig the Supreme Court of Texas resolved whether a deed conveying a non-participating royalty interest “free of costs forever” relieved the royalty owners from bearing postproduction costs for minerals sold downstream. Under the language in the deed in this case, it did not.
The
Way back in 2023 it was predicted that the Supreme Court of Texas’ decision in Van Dyke v. Navigator would spawn years of litigation. How right the predictions were!
Davis v. Aethon Energy Operating LLC is more for lawyers than business people but it is worth noting. A Texas court of appeals affirmed a take-nothing judgment against lessors who sued over the lessee’s failure to provide required information on check stubs. The question asked of the jury did not match the
Several weeks ago the Supreme Court of Texas addressed the double-fraction mineral conveyance, reinforcing the “Van Dyke presumption” but not addressing how the presumption could be rebutted or the presumed-grant doctrine. Last week’s Clifton v. Johnson addresses both.
The deed and the suit
The typewritten title to a “Mineral Deed” was crossed out and “Royalty Deed”
Navigator Group, et al. v. Van Dyke, et al.* is the latest stopover in the journey of the double-fraction mineral conveyance through the Texas courts. The Eastland Court of Appeals rejected challenges to the Supreme Cout of Texas’ 2023 pronouncement in Van Dyke v. Navigator Group (Van Dyke II).
The history
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