News & Analysis as of

Gas Royalties Mineral Leases Postproduction Costs

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

Gray Reed

Texas Supreme Court Weighs in on Post-Production Costs

Gray Reed on

The Supreme Court of Texas has ruled that oil and gas leases under consideration in BlueStone Natural Resources II, LLC v. Walker Murray Randle, et al. did not permit deduction of postproduction costs from sales proceeds...more

Spilman Thomas & Battle, PLLC

Prohibition of Post-Production Expenses on Flat Rate Royalty Leases in West Virginia

Summary of S.B. 360 - SB 360 applies to flat rate royalty leases, i.e. leases for which the royalty is not "inherently related to the volume of oil and gas so extracted, produced, and marketed," and the conditions upon...more

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