Clifton v. Johnson: The Texas Supreme Court Puts Some Guardrails on Van Dyke
The Texas Supreme Court's Clifton v. Johnson decision delivers the clearest guidance yet on when the Van Dyke floating royalty presumption can be overcome.
Producer’s Edge
TEXAS OIL AND GAS LAW BULLETIN
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The Texas Business Court Continues to Stress the Importance of Properly Pleading Facts to Support Your Cause of Action
The Texas Business Court's latest opinion in Enosis Investments v. Jensen delivers another clear message: insufficient pleading will sink your case — before it ever reaches trial.
26-Step Mechanical Framework For Interpreting Deeds?
Texas courts reject "mechanical" deed interpretation while creating a 26-step framework. Bush v. Yarborough reveals the irony of structured analysis disguised as flexible law.
Supreme Court of Texas Washes Out the “Anadarko Washout”
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Plain Language Meets Common Sense: Hidden Traps in Oil Patch Contract Interpretation
What happens when a court reads your contract literally for one issue but decides what 'makes sense' for another? A geophysicist just found out.
Unclear Jury Instructions Allow for Various Interpretations
Lario Oil & Gas Co. v. Black Hawk Energy Services, Ltd. highlights the importance of carefully drafting jury instructions and questions.
Executive Decision: Texas Courts Split on Executive Rights?
A Texas appeals court held that grantors retained executive rights beyond the fractional mineral interests they conveyed and that a 1958 deed reserved a fixed 1/32 royalty, rebutting the presumption established in Van Dyke v. Navigator Group.
Non-Consenting Non-Ops Owe Royalties Without Revenue?
A Texas appeals court held that a non-operating lessee must pay royalty on a cotenant’s production beginning with first production, regardless of payout, and affirmed an attorney’s fee award exceeding $500,000 despite only $17,588 in stipulated interest damages.
Volume Deficiency Fees as Deductible Post-Production Costs?
A Texas appeals court held that minimum-volume deficiency fees under terminal throughput agreements and crude oil price reductions qualify as deductible post-production transportation costs from an overriding royalty.
Can Underpayment be a “Nonpayment” Allowing Lease Cancellation?
A Texas federal court addressed royalty underpayments, lease termination notice requirements, and NGL deductions, holding that underpayments may constitute nonpayment but that termination notices must identify specific unpaid royalties.
Considerations for Product Storage Arrangements
Terminal storage agreements are essential to managing financial and operational risks. This article explores UCC warehouse lien rights and five key contractual provisions that can help terminal operators protect their interests, manage customer relationships, and limit liability.
The Eason Report: Does a Franchisee’s Texas Store Create Jurisdiction?
Can an out-of-state franchisor be sued in Texas simply because its brand appears on local storefronts? This article examines the limits of general jurisdiction under Texas and federal law and offers practical guidance for franchisors seeking to minimize jurisdictional risks.