News & Analysis as of

Appeals Mineral Leases

Gray Reed

Ambiguity Frees Louisiana Royalty Owner From Post-Production Costs

Gray Reed on

In Franklin v. Regions Bank the Fifth Circuit concluded that a royalty clause in a mineral lease resulted in a gross proceeds royalty; the royalty owners did not bear their proportionate share of post-production costs. Read...more

Gray Reed

Texas Supreme Court Decides Who Must Produce to Maintain an Oil and Gas Lease

Gray Reed on

In Cromwell v. Anadarko E & P Onshore LLC the Supreme Court of Texas did what it so often does: In order to provide “legal certainty and predictability”, the Court considered the plain language of a contract in order to...more

McGinnis Lochridge

Supreme Court of Texas Washes Out the “Anadarko Washout”

McGinnis Lochridge on

The so called “Anadarko Washout” involves a washout of oil and gas leases on undivided working interests owned by non-operating mineral cotenants. This particular species of lease washouts is based on two recent cases from...more

Houston Harbaugh, P.C.

Sixth Circuit Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on

Let’s assume you own 105 acres in Greene County, Pennsylvania. In 2020, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

McGinnis Lochridge

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

McGinnis Lochridge on

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

McGinnis Lochridge

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

McGinnis Lochridge on

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

McGinnis Lochridge

Production Disputes and Estoppel Claims Cloud Lease Termination in Milam County

McGinnis Lochridge on

In this lease termination case (Pruett v. River Land Holdings, LLC, No. 03-22-00478-CV, 2024 WL 1745652, at *1 [Tex. App.—Austin Apr. 24, 2024, no pet.]), the Austin Court of Appeals was tasked with examining a cessation of...more

McGinnis Lochridge

Affirmative Defenses Are Insufficient to Rebut the Van Dyke Presumption

McGinnis Lochridge on

Under Van Dyke, deeds with double-fraction royalty reservations referencing “1/8” are presumed to reserve a floating royalty interest unless clearly contradicted. Defenses like waiver, ratification, and limitations cannot...more

McGinnis Lochridge

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

McGinnis Lochridge on

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

Vorys, Sater, Seymour and Pease LLP

Supreme Court of Ohio Dismisses Appeal Seeking to End Senterra’s “Rolling Analysis”

In Senterra Ltd. v. Winland, 2019-Ohio-4387, Ohio’s Seventh District Court of Appeals held that an examiner, after identifying the root of title and finding that an exception to marketable record title applies, should review...more

Vorys, Sater, Seymour and Pease LLP

U.S. Court of Appeals Holds Trial Court Erred in Granting Preliminary Injunction Without Finding Plaintiff Would Suffer...

This past week, in EOG Resources, Inc. v. Lucky Land Management, LLC, 2025 U.S. App. LEXIS 8738, the U.S. Court of Appeals for the Sixth Circuit reversed the decision of the district court granting a preliminary injunction...more

McGinnis Lochridge

Tackling Free-Use and At-The-Well Royalties

McGinnis Lochridge on

This lease royalty case involved a dispute over whether the lessee was permitted to deduct volumes of gas used off the premises to power post-production activities on other gas produced from the same well. Carl v. Hilcorp...more

McGinnis Lochridge

Who Can Enforce Surface Provisions in an OGL?

McGinnis Lochridge on

Unitex WI, LLC v. CT Land & Cattle Co., LLC, No. 07-23-00390-CV, 2024 WL 3249338 (Tex. App.—Amarillo June 28, 2024, pet. filed)...more

Gray Reed

NPRI Plaintiff Survives Affirmative Defenses

Gray Reed on

Boren Descendants et al v. Fasken Oil and Ranch, LTD, offers something to talk about beyond interpretation of the fixed-or-floating NPRI question.  At issue was this reservation, expressed as a double fraction, in a 1933...more

Houston Harbaugh, P.C.

Ohio Appeals Court Rules that Horizontal Shale Well Was “On” the Leased Premises

Houston Harbaugh, P.C. on

Let’s assume you own a 175 acre farm in Washington County. Your grandfather acquired the farm back in 1948 from Farmer Brown (the “1948 Deed”). Your grandfather always said that he bought both the surface and oil and gas. In...more

Oliva Gibbs

Happiness is Setting Clear Boundaries — Especially in Overriding Royalty Assignments

Oliva Gibbs on

Assignments of interests in oil and gas leases often incorporate by reference outside agreements. This can be a helpful shortcut to avoid including every lengthy and confidential provision that was drafted during negotiations...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Reaffirms the Dunham Rule

Houston Harbaugh, P.C. on

Let’s assume you inherited a 150 acre farm in Lycoming County that has been owned by your family since 1909. In 2020, you are approached by ABC Drilling about a new oil and gas lease for the farm. You retain counsel and...more

Oliva Gibbs

Coverting a “Fixed” to a “Floating” NPRI: What (If Anything) Does ConocoPhillips v. Hahn Add to the Conversation?

Oliva Gibbs on

In ConocoPhillips Co. v. Hahn, the Supreme Court of Texas addressed whether a “fixed” nonparticipating royalty interest (“NPRI”) was later converted to a “floating” NPRI. The court weighed two possible means of this...more

White & Case LLP

Implications of the Texas Supreme Court and the Fifth Circuit Court of Appeals Ruling on Fuel Gas Royalties

White & Case LLP on

On June 4, 2024, the United States Court of Appeals for the Fifth Circuit affirmed the dismissal of an "at the well" royalty holder's class action lawsuit after the Texas Supreme Court held that Hilcorp Energy Co. properly...more

Steptoe & Johnson PLLC

District Court Dismisses Challenge to West Virginia Unitization Act

Steptoe & Johnson PLLC on

On March 20, the U.S. District Court for the Northern District of West Virginia dismissed Sonda v. West Virginia Oil and Gas Conservation Commission for lack of standing. The lawsuit was brought by mineral interest owners...more

Mintz

The Osage Nation of Killers of the Flower Moon Fame Had a Big Win in Federal Court This Week

Mintz on

A Federal Judge in Oklahoma has ordered the ejectment of 84 wind turbines on 8400 acres of Osage County Oklahoma. The problem for the developers of the wind farm is that they leased the surface of those 8400 acres from the...more

Gray Reed

Lease Perpetuated Beyond Primary Term Without Production in Paying Quantities

Gray Reed on

If perpetuation of a mineral lease beyond the primary term is contingent upon continuous operations, do traditional notions of “production in paying quantities” always matter? Spoiler: No....more

Winstead PC

Court Holds That Venue For Suit Over Royalties By A Trustee Was Proper Due To Statutory Venue Provision Even Though The Suit Did...

Winstead PC on

In In re Equinor Tex. Onshore Props., a trustee filed two cases against different defendants in the same county regarding a royalty dispute under oil and gas leases. No. 05-20-00578-CV, 2020 Tex. App. LEXIS 8042 (Tex....more

Perkins Coie

BLM’s Lease of Lands in Alaska’s National Petroleum Reserve Using Programmatic-Level EIS Did Not Violate NEPA

Perkins Coie on

The Ninth Circuit held that a 2012 Environmental Impact Statement that provided a programmatic-level analysis for management of lands in the Alaska National Petroleum Reserve could also be used as the site-specific analysis...more

Gray Reed

Family History Guides Interpretation of a Texas Will

Gray Reed on

Generally, if your will leaves your beloved “all … right, title and interest in and to”, said beloved would receive the entirety of your interest, whether a surface estate, mineral estate, or both. But in ConocoPhillips, et...more

47 Results
 / 
View per page
Page: of 2

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide