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What Happens to a Bundled Production Payment When a Lease Terminates?

By Charles Sartain on March 15, 2016
Posted in Land Titles, Royalty Disputes, Title Issues

production paymentMust a production payment out of four oil and gas leases be proportionately reduced if two of the leases expire because production ceased? In Apache Deepwater, LLC v. McDaniel Partners, Ltd., the Texas Supreme Court says yes. Absent express language in the assignment to the contrary, this general rule applies:  When an assigned…

About Charles Sartain

I have been helping clients of all types resolve their commercial disputes for most of my 35 years as a lawyer. Of the many industries in which I have worked, the energy business is the most fascinating…More

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