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Well Drilling Mineral Leases Texas

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

Houston Harbaugh, P.C.

Texas Appellate Court Rules That ‘Free of Cost’ Clause In 1960 Deed Prohibits The Deduction of Post-Production Costs

Houston Harbaugh, P.C. on

Let’s assume you own a 135 acre farm in Tioga County, Pennsylvania. In 2020, you negotiate a new oil and gas lease with XYZ Drilling Company. During the negotiations, you insist on a cost free, no deduction royalty of 17%. ...more

Oliva Gibbs

Muscled Out While “Muscling In”: The Role of Actual Drainage in MIPA

Oliva Gibbs on

In Ammonite Oil & Gas Corp. v. R.R. Comm’n of Tex., the Texas Supreme Court held that the Railroad Commission (the “RRC”) did not abuse its discretion in denying a “muscle in” application under the Texas Mineral Interest...more

Porter Hedges LLP

Wellbore Transactions Update - Conveyances, Reservations And Related Lease Severance Issues

Porter Hedges LLP on

This article focuses on the state of Texas law regarding wellbore rights and various related issues raised by transactions involving such rights (and other similar lease severance issues) and provides some practical tips to...more

Houston Harbaugh, P.C.

Texas Court Confirms “Automatic Termination” Rule for Oil and Gas Lease

Houston Harbaugh, P.C. on

In Cromwell v. Anadarko E&P Onshore, LLC, 676 S.W. 3d 860 (Tex. App. 2023), the Texas Court of Appeals confirmed the automatic termination of an oil and gas lease, and simultaneously rejected the argument that a forfeiture...more

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