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A Cost-Free Royalty Clause That Works – Part One

Chesapeake Exploration, L.L.C. v. Hyder is another hair-splitting Texas decision about “cost-free royalties”. ...more

3/18/2014  /  Energy Sector , Minerals , Oil & Gas , Royalties

Was The Royalty Reservation “Floating” Or “Fixed”?

The question in Graham v. Prochaska: Did the grantors in a 1950 Texas warranty deed reserve a “floating” 1/2 royalty interest or a “fixed” 1/16th royalty?...more

Deduction Of Post-Production Costs From Gas Royalties – Another Lesson

Consider this while celebrating the resurrection of Big Tex: When a lease prohibits post-production cost deductions, can a lessee deduct those costs from a lessor’s royalty? Yes, says Potts v. Chesapeake Exploration, L.L.C. ...more

Several Lessons For Louisiana Royalty Owners

Ross et al v. Enervest Operating, L.L.C. et al has several teachable moments for Louisiana royalty owners. ...more

7/31/2013  /  Good Faith , Royalties , Written Notice

Ambiguity Sends An Overriding Royalty Dispute Back To The Trial Court

It must be maddening to non-lawyers that a large segment of an industry can operate in harmony by agreeing that a contract in widespread use means one thing, only to have party-crashers decide it means another....more

Perils Of Proportionate Reduction, And A Detour Through D-Day

First, an admission and a regret: My June 6 post missed the 69th anniversary of an episode as significant as any in our country’s history: D-Day. ...more

6/11/2013  /  Leases , Minerals , Proportionality , Royalties

Lessor Is Not Entitled To Royalty On Hedging Profits

A Louisiana lessee does not owe its lessor royalties based on hedging profits, said a federal district court in Cimarex Energy Co. v. Chastant. ...more

5/22/2013  /  Hedging , Oil & Gas , Royalties

Compulsory Unitization Undermines Texas Values (Rhetorically Speaking)

Texas’s proposed Oil and Gas Majority Rights Protection Act(House Bill 100) has many detractors whose reasons are intense and varied. Here are some of them...more

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