News & Analysis as of

Land Owners Gas Royalties

Gray Reed

How Courts Look at Fixed or Floating Royalty Disputes

Gray Reed on

Montgomery Trustee v. ES3 Minerals and Echo Minerals is another Texas fixed or floating royalty case. Before diving into the details, perhaps it’s best to describe the pattern the courts seem to fall into to resolve these...more

Houston Harbaugh, P.C.

Pennsylvania Court Rules That Shut-In Royalty Provision Had No Connection to the Duration of an Oil and Gas Lease

Houston Harbaugh, P.C. on

In its May 22, 2024 non-precedential memorandum decision in Frye v. Penn View Exploration, Inc., 919 WDA 2023 (Pa. Super. Ct. May 22, 2024), the Pennsylvania Superior Court found that an oil and gas lease’s shut-in royalty...more

Houston Harbaugh, P.C.

Texas Supreme Court to Address the Obligation to Calculate Royalty on Gas Used to Fuel Off-Lease Operations

Houston Harbaugh, P.C. on

Let’s assume you own 165 acres in Tioga County. In 2019, you sign a new oil and gas lease with ABC Drilling. You negotiate an 18% net royalty. The royalty clause, however, requires ABC Drilling to calculate the royalty on...more

Gray Reed

Reserved Royalty Interest is “Floating”

Gray Reed on

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

Houston Harbaugh, P.C.

Pennsylvania Supreme Court Agrees to Hear Appeal In Royalty Dispute

Houston Harbaugh, P.C. on

On February 15, 2023, the Pennsylvania Supreme Court agreed to hear the appeal of PennEnergy Resources, LLC in the Dressler Family, LP v. PennEnergy Resources, LLC matter. The Pennsylvania Supreme Court’s review of this...more

Houston Harbaugh, P.C.

What the Hedge? – The Impact of Price Hedging on Landowner Production Royalties

Houston Harbaugh, P.C. on

There is no way to avoid it. It seems like everything costs more now than it did last week, last month and last year. Energy is one area with very sensitive prices. You have likely experienced the significant changes in...more

Houston Harbaugh, P.C.

Market Enhancement Clauses in Pennsylvania After Dressler Family, LP v. PennEnergy Resources, LLC

Houston Harbaugh, P.C. on

Many Pennsylvania landowners have leases with “market enhancement” royalty clauses. These clauses typically prohibit the deduction of any post-production costs that are incurred transforming the gas into marketable form. Once...more

Houston Harbaugh, P.C.

Is Deducting Fuel Costs Authorized by Your Lease?

Houston Harbaugh, P.C. on

Deducting fuel costs from landowner royalties continues to be an ongoing and widespread practice. Not only are landowners denied a royalty on the fuel gas volume, but they are also having that same “cost” deducted from their...more

Gray Reed

Tax Foreclosure on Royalty Did Not Include Possibility of Reverter

Gray Reed on

Ridgefield Permian, LLC, et al. v. Diamondback E & P LLC, et al. addresses the scope of a property interest foreclosed upon by a tax suit in Reeves County, Texas. In this post we will shortcut the complicated facts and...more

Gray Reed

What Did the Mineral Deed Convey?

Gray Reed on

WTX Fund, LLC v. Brown, is Texas mineral deed construction case. In the same year that crazy thing happened at Coogan’s Bluff, the Roaches executed a Mineral Conveyance to the Holts. Let’s review the transaction and ask...more

Flaster Greenberg PC

Marcellus Shale Update: 2018, The Year in Review

Flaster Greenberg PC on

2018 began with the United States producing immense amounts of oil and natural gas; pipeline companies struggling to build out the national pipeline system but not being transparent about how they are doing it; Europe, led by...more

Spilman Thomas & Battle, PLLC

Currents - Energy Industry Insights - August 2018 #5

Gas Drilling Not Damaging Forests' Waterways, State Finds - "Pennsylvania's state forests agency says it isn't finding damage to waterways amid the expansion of natural gas drilling in recent years, although it is reporting...more

Steptoe & Johnson PLLC

West Virginia Legislature Passes Cotenancy Modernization and Majority Protection Act

On March 5, 2018, the West Virginia Legislature completed legislative action on and passed House Bill 4268, known as the Cotenancy Modernization and Majority Protection Act. The bill will now be delivered to the Governor’s...more

Roetzel & Andress

Ohio Supreme Court Rules in Landowner Royalty Case

Roetzel & Andress on

In a closely watched and long-awaited case with potentially sweeping industry-wide consequences, the Supreme Court of Ohio refused to adopt a default rule regarding deduction of postproduction costs from landowner royalties...more

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