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Breach of Contract › Royalties › Mineral Leases

Gray Reed

Texas Operator Protected From Royalty Payment Error

Gray Reed on

The takeaway from DDR Weinert, Limited et al v. Ovintiv USA Inc. is that equitable recoupment rescued a royalty payor from its mistaken payment of royalties. But first, The events. The Richters were mineral lessors...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

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

Oliva Gibbs

The Texas Division Order Statute: How It Works and Who It Serves to Protect

Oliva Gibbs on

A division order is a statement executed by all owners of interests in an oil and gas well.  The division order’s essential purpose is to “authorize and direct to whom and in what proportion to distribute” proceeds from the...more

Houston Harbaugh, P.C.

Recent Federal District Court Decision Suggests New Approach for Oil and Gas Lease Termination

Houston Harbaugh, P.C. on

The United States District Court for the Western District of Pennsylvania’s recent decision in Bootes v. PPP Future Development, Inc., C.A. No. 22-154 (W.D.Pa. March 21, 2023) denying a gas company’s request to dismiss oil...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Rules that Royalty Clause Referencing Both ‘Gross Proceeds’ and ‘At the Well’ Was Ambiguous

Houston Harbaugh, P.C. on

Let’s assume that you own 125 acres in Tioga County. In 2017, you negotiate a new oil and gas lease with XYZ Drilling. During the negotiations, you insist on a “gross royalty” which prohibits the deduction of...more

Gray Reed

Statute of Frauds Torpedoes an Overriding Royalty Sale

Gray Reed on

Here we go  again, in Gary and Theresa Poenisch Family Ltd. P’Ship v. TMH Land Servs., Inc., learning that a purported Texas land transaction will not be enforced if the parties fail to comply with the Statute of Frauds....more

Gray Reed

Lessee Escapes Termination

Gray Reed on

Escondido and Justapor. Next up on Tiny Desk Concert? Good guess, but no. They are the parties in Escondido v. Justapor, a Texas case presenting the perils of lease termination clauses and vaguely-drawn contracts....more

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