News & Analysis as of

Gas Royalties Mineral Extraction

Gray Reed

Texas Supreme Court Rules on Suspension of Proceeds of Oil and Gas Production

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Freeeport-McMoRan Oil and Gas, LLC and Ovintiv USA Inc. v. 1776 Energy Partners LLC  presented a recurring question faced by Texas oil and gas producers:  When can proceeds of production be withheld by the operator without...more

Gray Reed

Reserved Royalty Interest is “Floating”

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Texas courts continue to address the “fixed or floating” non-participating royalty interest question. The El Paso Court of Appeals’ answer in Bridges v. Uhl et al. was floating, based on the language in that particular...more

Gray Reed

Louisiana Royalty Owner Survives Challenge to Demand For Payment

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The question in Kim R. Smith Logging Inc. v. Indigo Minerals LLC  was whether a disgruntled Louisiana royalty owner sent its demand for unpaid royalties to the right party.  It turns out that it did....more

Gray Reed

Beware Assignor: Own the Leases Before You Reserve the Override

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Let’s begin with a quiz. Armour purchases non-recourse mortgage notes, becoming a lienholder in 99 oil and gas leases and 13 wells; fails to record the transfer documents in the real property records; assigns the leases to...more

Gray Reed

Royalty Obligations on Free-Use Gas Redux

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Recall our recent post on Carl v. Hilcorp Energy Company from the U.S. District Court for the Southern District of Texas discussing the lessee’s royalty obligations on gas used off the premises in a market-value lease. See...more

Gray Reed

Texas Supreme Court Weighs in on Post-Production Costs

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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

Gray Reed

When is a “Gross Proceeds” Royalty not Paid on Gross Proceeds?

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Devon Energy Prod. Co., et al. v. Sheppard, et al is your kind of case if you are in search of: - A roadmap for slicing and dicing royalty calculations in myriad ways, - Pretty good summaries of the Supreme Court’s...more

Gray Reed

Oil Field Technology … and a Texas Bill Aimed at Royalty Owners

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Welcome to today’s grab-bag of unrelated topics. The climate avengers are clever in the way they demonize the industry. They give zero credit for technological advancement. Truth is, the industry’s use of technology is...more

Gray Reed

Royalty Owners Seeking Class Certification Sent Back to the Trial Court

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The latest Fifth Circuit opinion in Seeligson v. Devon Energy Production, L.P. is the latest round in a class action that has been developing since 2014....more

Gray Reed

An Arbitration Ruling That’s About More Than Arbitration

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In 2016 Ridge contacted the McDaniels (Double Eagle’s predecessors) with an offer to “lease” their mineral interests in Winkler County. The McDaniels informed Ridge about a producing lease from 2004, and were assured that it...more

Gray Reed

Who is a “Payor” Under the Texas Natural Resources Code?

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You’ve secured the right leases. You’ve drilled nice wells in the right locations. Now, will you pay the right royalty owners? Follow Devon Energy Production Company, L.P. v. Apache Corporation, to be sure that you do....more

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