Jamie D. Rhymes

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Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

In Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., the Louisiana Second Circuit upheld a trial court’s ruling that the holder of a security interest in mineral leases was solidarily liable for damages under the Louisiana Mineral Code stemming from its mineral lessees/mortgagors’ actions.[1] In the case, a landowner sued its mineral lessees for: (1) failure … Continue Reading

Louisiana Second Circuit Provides Clarity on Production in Paying Quantities and Affirms Lease Cancellation Under Mineral Code Article 140 for Failure to Pay Royalties

On June 2, 2017 the Louisiana Second Circuit Court of Appeal affirmed a trial court’s judgment cancelling a mineral lease under Mineral Code article 140 and provided further clarity on a production in paying quantities analysis under Louisiana Mineral Code article 124.[1]  The dispute in Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., arose from a … Continue Reading

Production in Paying Quantities: Second Circuit Holds Lower Courts Must Consider All Relevant Factors, Not Just Profit

Since this blog’s post on production in paying quantities on January 26, 2016, the Louisiana Second Circuit Court of Appeal rendered its latest decision on the subject in Middleton v. EP Energy E&P Co., L.P., 50,300-CA (La. App. 2d Cir. 2/3/16).  While not particularly groundbreaking, Middleton does provide further guidance to mineral lessees and litigators … Continue Reading

Production in Paying Quantities: Maintaining Mineral Leases Beyond Their Primary Terms with Production of Oil or Gas

The sharp decline in oil prices over the past year and a half has had a significant impact on operators and mineral lessees in Louisiana and in other oil-producing states.  Mineral lessees may be particularly concerned with whether recent production levels have maintained their leases beyond their primary terms. In Louisiana, as in most jurisdictions, … Continue Reading
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