If you’ve ever tried to escape penalties for the operator/producer’s failure to comply with La. R.S §30:103.1 and §103.2, take comfort in XXI Oil & Gas, LLC v. Hilcorp Energy Company. You are not alone. No excuse has satisfied the courts, and there is none here.
The statutes (links above) require information
A lessee, operator, and contract driller were found to be a “single business enterprise” for the purpose of imposing statutory penalties and attorney fees for failure to pay royalties. The principle is that if one corporation is wholly under the control of another, the fact is it is a separate entity does not relieve the