- Royalty on gas
Texas Operator Protected From Royalty Payment Error
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
Texas Pore Space Ownership – Royalty Calculation
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”
NPRI Plaintiff Survives Affirmative Defenses
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
Ratifications, Stipulations, and Fixed vs. Floating Royalty Interests
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.
“Free of Cost” Royalty Includes Post-production Costs
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
Louisiana Supreme Court Issues Major Post-Production Cost Opinion
In Self v. BPX Operating, a case with significant implications for Louisiana operators and royalty owners, the Supreme Court of Louisiana ruled that the doctrine of negotiorum gestio in La. Civil Code art. 2292 does not allow the operator of a drilling unit created by Louisiana’s conversation laws to withhold post-production expenses (PPCs) from
No Compound Interest on Unpaid Royalties Under Texas Oil and Gas Lease
It’s not exactly Deuteronomy 23:19, but the Supreme Court of Texas has an opinion about interest. They don’t like it if it’s compounded. Samson Exploration LLC v. Bordages addressed interest to be charged on unpaid royalties under an oil and gas lease.
The takeaway
Compound interest is disfavored in Texas law. An agreement for interest
How Courts Look at Fixed or Floating Royalty Disputes
- To the extent
Texas AG Issues Opinion on Landmen and Wind Power Leasing
It would be a heavy burden to catalogue all of the wrongs one might attribute to our Texas Attorney General. Now, we have another one. Opinion KP-0467, responding to a request from the Texas Real Estate Commission, concluded that a person who negotiates a lease of property for the development of a wind power project