Producer’s Edge
TEXAS OIL AND GAS LAW BULLETIN
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.
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.
What happens when your operator files Chapter 11 overnight? This article explores the practical issues non-operators face in operator bankruptcies, including the automatic stay, JOA rights, revenue recovery, operator replacement, and protecting working interests.
How do you measure a horizontal wellbore — and why does it matter? The Eighth Court of Appeals' decision in MRC Permian Co. v. Point Energy Partners Permian LLC answers that question in ways every oil and gas practitioner needs to understand.
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.
Volume 8, Issue 3 of Producer’s Edge features legal analysis of recent Texas case law, royalty obligations, post-production costs, force majeure disputes, executive rights, and other emerging issues affecting the oil and gas industry.
Recent Texas and federal court decisions clarify when royalty owners bear post-production costs. This article examines the impact of cost-free language, gross-proceeds provisions, and add-back clauses on royalty calculations.
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.
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.
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.
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.
