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No Compound Interest on Unpaid Royalties Under Texas Oil and Gas Lease

By Charles Sartain on August 5, 2024
Posted in Lease Disputes, Royalty Disputes

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…

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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