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Land Owners Mineral Leases Contract Terms

Houston Harbaugh, P.C.

Texas Supreme Court to Address the Obligation to Calculate Royalty on Gas Used to Fuel Off-Lease Operations

Houston Harbaugh, P.C. on

Let’s assume you own 165 acres in Tioga County. In 2019, you sign a new oil and gas lease with ABC Drilling. You negotiate an 18% net royalty. The royalty clause, however, requires ABC Drilling to calculate the royalty on...more

Gray Reed

Fifth Circuit Punts Postproduction Cost Question to Louisiana Supreme Court

Gray Reed on

The question in Self v, BPX Operating Company is how to balance the Louisiana Civil Code Art 2292 principle of negotiorum gestio against Louisiana’s conservation statutes....more

Houston Harbaugh, P.C.

The Strip and Gore Doctrine - Who Really Owns The Oil and Gas Under Roads and Highways?

Houston Harbaugh, P.C. on

Let’s assume your grandfather owned 99 acres in Washington County. In 1955, he sells a small portion of the farm to the Commonwealth of Pennsylvania in order to facilitate the construction of new State Route 39. This acreage...more

Houston Harbaugh, P.C.

Texas Supreme Court Rules That 1924 Deed Conveyed One Half Of The Oil and Gas Estate

Houston Harbaugh, P.C. on

The calculation of production royalties and the deduction of post-production costs remains a controversial topic here in Pennsylvania. As we have written before, there is another frustrating and often confusing...more

Houston Harbaugh, P.C.

Texas Supreme Court Rules That Post-Sale Costs Must be Added Back to Gross Proceeds Calculation

Houston Harbaugh, P.C. on

Let’s assume you own 185 acres in Washington County. In 2020, you negotiate a new oil and gas lease with ABC Drilling. During the negotiations, you insist on a “gross royalty” which prohibits the deduction of post-production...more

Gray Reed

Reserved Royalty Interest is “Floating”

Gray Reed on

Texas courts continue to address the “fixed or floating” non-participating royalty interest question. The El Paso Court of Appeals’ answer in Bridges v. Uhl et al. was floating, based on the language in that particular...more

Houston Harbaugh, P.C.

Can "Free Gas" Clauses Refute the Artificial Wellhead Value Suggested by Drillers?

Houston Harbaugh, P.C. on

An oil and gas lease with a “free gas” clause may be a valuable tool for landowners to push back against drillers’ inaccurate attempts to value gas at the “wellhead”. Prior to the advent of Marcellus Shale drilling, "free...more

Steptoe & Johnson PLLC

Pennsylvania Court Upholds Cross-Unit Drilling Under Act 85

Steptoe & Johnson PLLC on

On January 24, 2023, the U.S. District Court for the Middle District of Pennsylvania held that Act 85 of 2019, which permits drilling horizontal oil and gas wells across existing drilling units, is not unconstitutional....more

Gray Reed

Texas Court Decides What “Likewise” Means in a Conveyance

Gray Reed on

Consider the power of a single word over the fortunes of the parties to a property deed. Such was the court’s analysis in Barrow Shaver Resources, LLC, et al v. NETX Acquisitions, LLC, et al....more

Houston Harbaugh, P.C.

Texas Appellate Court Rules that Lease Terminated Due to Twelve Months of Non-Production

Houston Harbaugh, P.C. on

The modern producing gas well is a sophisticated and complex piece of equipment. The basic well head itself consists of several meters, valves and other components, each of which is under constant stress and pressure. ...more

Gray Reed

Tax Foreclosure on Royalty Did Not Include Possibility of Reverter

Gray Reed on

Ridgefield Permian, LLC, et al. v. Diamondback E & P LLC, et al. addresses the scope of a property interest foreclosed upon by a tax suit in Reeves County, Texas. In this post we will shortcut the complicated facts and...more

Gray Reed

What Did the Mineral Deed Convey?

Gray Reed on

WTX Fund, LLC v. Brown, is Texas mineral deed construction case. In the same year that crazy thing happened at Coogan’s Bluff, the Roaches executed a Mineral Conveyance to the Holts. Let’s review the transaction and ask...more

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