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Royalties Mineral Rights Mineral Leases

Gray Reed

Louisiana Supreme Court Issues Major Post-Production Cost Opinion

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In Self v. BPX Operating, a case with significant implications for Louisiana operators and royalty owners, the Supreme Court of Louisiana ruled that the doctrine of negotiorum gestio in La. Civil Code art. 2292 does not allow...more

Houston Harbaugh, P.C.

Who Owns the Produced Water From Oil & Gas Operations?

Houston Harbaugh, P.C. on

Although historically viewed as a waste, produced water that comes to the surface as part of the oil and gas production stream now potentially has value. Produced water can be recycled and reused as part of hydraulic...more

Gray Reed

“Floating” Beats “Fixed ” in Texas Royalty Reservation

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If you are scoring at home, count Permico Royalties LLC v. Barron Properties, Ltd., as a win for “floating” in the fixed-or-floating royalty battles. Permico, successor to grantors in a 1937 Deed for a tract in Ward County,...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Clarifies Nature of Oil and Gas Lease Under Pennsylvania Law

Let’s assume you own a 160-acre farm in Washington County. Your father purchased the farm in 1992 from a local farmer named Jones. (the “1992 Deed”). At the time your father purchased the farm, there was an oil and gas lease...more

Gray Reed

Will the Fixed or Floating Suits Ever End?

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Rhetorical Question: When will Texas be done with fixed/floating royalty cases such as Johnson et al v. Clifton et al? Rhetorical Answer: When scriveners of deeds that are open to eight conceivably plausible meanings...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

Gray Reed

Who Bears the Burden of a Newly Discovered Non-Participating Royalty Interest?

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The question in Brooke-Willbanks v. Flatland Mineral Fund LP, et al was which party to a Texas mineral deed would bear the burden of two previously reserved nonparticipating royalty interests....more

Gray Reed

Texas NPRI Burdened with Post-Production Costs

Gray Reed on

BlueStone Nat. Res. II, LLC v. Nettye Engler Energy, LP is another Texas case deciding whether language creating a nonparticipating royalty interest prohibited deduction of post-production costs. (Spoiler alert: it didn’t....more

Gray Reed

My Operator is Making Money … Part 2, The Operator’s Response

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The threat: You, the operator, are operating unprofitable wells where monthly costs exceed or barely equal revenues, making money on the fixed COPAS overhead charges. Your non-operators are going into the economic hole and...more

Gray Reed

Operator Runs Out the Clock on Co-Tenant

Gray Reed on

Less than a year ago, we discussed the “Unanswered Questions” left in the wake of Devon Energy Prod. Co., LP v. Apache Corp. (which did answer the question, “Who is a ‘Payor’ Under the Texas Natural Resources Code?”). ...more

King & Spalding

Mineral and Royalty Interest MLPs: An Alternative Exit For PE-Backed Mineral and Royalty Interest Cos.

King & Spalding on

Oil and gas exploration companies no longer have to go door-to-door, or ranch-to-ranch, to negotiate oil and gas leases with individual mineral interest owners. Over the last decade or more, pure-play mineral and royalty...more

Gray Reed

Another Chesapeake Post-Production Deduction Case

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The result was like others we’ve seen. Lessors Win. These wells are in Johnson and Tarrant County, Texas. Lessee Chesapeake Exploration sells to affiliate Chesapeake Marketing through affiliate-operator Chesapeake Operating....more

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