Tackling Free-Use and At-The-Well Royalties
Lease royalty calculated on “market value at the well” held to bear a proportion of gas used off the lease premises as a form of post-production cost under the workback method...
Lease royalty calculated on “market value at the well” held to bear a proportion of gas used off the lease premises as a form of post-production cost under the workback method...
Texas Crude and Warwick sued Burlington after it refused to drill 44 proposed wells, claiming it would be "imprudent." Court ruled operator must drill when all parties consent.
Texas court: Pipeline assignment without written consent was 'void,' destroying entire chain of title and $2.5M judgment. One broken link meant all downstream transfers fail.
Mineral owners are often subject to general oil and gas lease forms that include provisions benefitting the surface estate. But, when they own no interest in the surface, who, if anyone, has the right to enforce those provisions?
The Texas Supreme Court ruled that ratifying a lease doesn't change a fixed NPRI to a floating one. However, a subsequent stipulation between parties can modify the NPRI, rejecting the argument that an unambiguous deed cannot be altered by a later stipulation.
Winter Storm Uri sent shockwaves through Texas, freezing gas supplies at a time of critical need and plunging the state into widespread power outages. In the aftermath, the courts have been flooded with force majeure claims, many of them hinging on widely used contracts like the NAESB model form.