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Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

Can a Production Sharing Agreement Override Surface Owner Consent? Hamilton v. ConocoPhillips Explored

A landowner’s failure to provide consent for surface use related to oil and gas operations does not necessarily preclude the lessee from conducting activities if the lease agreements allow surface use....more

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more

Texas Supreme Court Rules on Modification of NPRIs

In this recent case, the Texas Supreme Court resolved whether ratification of a lease or signing of a stipulation agreement could transform a fixed non-participating royalty interest (NPRI) into a floating NPRI....more

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