Co-author Chance Decker

You’ve secured the right leases.  You’ve drilled nice wells in the right locations.  Now, who will pay the royalty owners?  Follow Devon Energy Production Company, L.P. v. Apache Corporation, to be sure.

The takeaways

• The duty to pay lessor royalties was owed by their lessee, not the operator of the wells.
• There’s something missing from the opinion. Tune in soon for an in-depth discussion of the question that is not addressed.
  Continue Reading Who is a “Payor” Under the Texas Natural Resources Code?