News & Analysis as of

Royalties Commercial Leases

Houston Harbaugh, P.C.

Sixth Circuit Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on

Let’s assume you own 105 acres in Greene County, Pennsylvania. In 2020, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

McGinnis Lochridge

Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

McGinnis Lochridge on

In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

Lewitt Hackman

FRANCHISEE 101: Cannabiz Accounting

Lewitt Hackman on

Tax service franchisor, H&R Block, was recently vindicated in having terminated a franchisee for violating an in-term non-compete covenant. A United States District Court granted the franchisor summary judgment in Devore v....more

BakerHostetler

Texas Supreme Court to Hear Case on “Capability of Production” Under Shut-In Clause

BakerHostetler on

On Sept. 2, the Texas Supreme Court granted review in a case that may clarify when a shut-in well’s capacity for production in paying quantities is determined. In BP America Production Company v. Red Deer Resources, LLC, No....more

King & Spalding

Texas Supreme Court Clarifies When Parties to an Oil and Gas Lease May Allocate Post-Production Costs by Agreement

King & Spalding on

The Texas Supreme Court recently decided Chesapeake Exploration, L.L.C. v. Hyder, providing a notable win for royalty interest holders. In a close 5-4 decision, the Texas Supreme Court held that Chesapeake had improperly...more

K&L Gates LLP

CO2 Separation Anxiety—Is the cost of separating CO2 from casinghead gas a “production” or “post-production” cost for purposes of...

K&L Gates LLP on

In a recent decision, the Supreme Court of Texas concluded that the cost of removing carbon dioxide (“CO2”) from casinghead gas after completing enhanced oil recovery operations is a “post-production” cost, thus clarifying...more

K&L Gates LLP

Pennsylvania Appeals Court Issues Decision Curtailing Oil and Gas Owners’ Ability to Terminate Their Leases

K&L Gates LLP on

Forfeiture clauses are common in many legacy oil and gas leases in Pennsylvania and are often relied upon by oil and gas owners/lessors seeking to terminate their leases in order to seek more financially lucrative...more

K&L Gates LLP

Preparing for the New Pennsylvania "Oil and Gas Lease Act"

K&L Gates LLP on

Over recent months, the Pennsylvania General Assembly has increased its focus on issues surrounding royalty payments to landowners from oil and natural gas producers; and on June 30, the legislature sent to the Governor...more

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