In this episode of “Energy Law This Week,” hosts Matt Jones and April L. Rolen-Ogden discuss recent cases in energy law, focusing on lease disputes, surface versus mineral rights, and the complexities of royalties. They emphasize the importance of written agreements, the implications of production and post-production costs, and the legal pitfalls
When an operator mistakenly overpays a royalty owner, it can recoup the overpayment from future royalties. While this is a common industry practice, the doctrine of equitable recoupment is seldom discussed in detail by Texas courts.
Continue Reading Fifth Circuit Provides Rare Overview of the Doctrine of Equitable Recoupment
On May 17, 2024, the Texas Supreme Court held that when a lease requires royalties to be paid on all gas sold or used off the premises, but the valuation point for said royalties is “at the well,” gas used off premises as fuel is deductible as a matter of law.
Continue Reading Texas Supreme Court Determines That Off-Lease Fuel is Deductible from Royalties Valued at the Well
Louisiana State Mineral and Energy Board to Consider Retaining Outside Counsel to Pursue Claims Against Louisiana Mineral Lessees and Well Operators for Failure to Correctly or Timely Pay Royalties.
Continue Reading Louisiana State Mineral Board to Consider Retaining Third Party Counsel to Pursue Underpayment of Royalty Claims Associated with Natural Gas Production on State Lands and Waterbottoms
On Friday, March 31, 2023, Representative Larry Bagley of Louisiana’s District 7 proposed amendments to Louisiana Revised Statutes § 30:10. The bill, HB 590, extends a prior substantive change in the law that was affected by the 2012 amendments to La. R.S. 30:10. In the 2012 amendment, operators of force-pooled drilling units were required
The Texas Supreme Court recently released its opinion in Devon Energy Production Company, L.P. v. Sheppard, — S.W.3d —, No. 20-0904, 2023 WL 2438927 (Tex. 2023), in which it held that lessees owed royalties in excess of their gross proceeds, specifically “adding back” costs incurred by third-party buyers that were enumerated in the sales
As a key component of most batteries, lithium is ubiquitous in our daily lives. From the moment your alarm on your cell phone goes off in the morning, to using your battery-powered toothbrush, to reading this blog post on your laptop or tablet, lithium makes it all work. Thus, it shouldn’t surprise you to hear
The Texas Supreme Court recently released its opinion in Van Dyke v. Navigators Grp., No. 21-0146, 2023 WL 2053175 (Tex. Feb. 17, 2023), in which it re-affirmed the axiomatic principle that a text retains the same meaning in the present day as when it was drafted. In the context of antiquated oil and gas
In Crooks v. State of Louisiana through the Department of Natural Resources, 22-0625 (La. 1/1/23), ___ So. 3d ___, 2023 WL 526075, the Louisiana Supreme Court rejected a writ of mandamus that would have compelled the LDNR to satisfy a $4.7 million judgment for reimbursement of mineral royalties. In doing so, the Court further
For nearly three years, unit operators in Louisiana have waited to see whether the Western District of Louisiana would change course or double down on its March 2019 decision in Johnson v. Chesapeake. In the original Johnson decision, the district court sent shockwaves across the oil and gas industry in Louisiana by finding that post-production costs were not properly deductible against proceeds owed to unleased mineral owners. In the wake of that decision, at least two putative class actions were filed against the largest producers in the Haynesville Shale, and operators have been flooded with demands and suits from unleased owners who relied on Johnson to contest the validity of post-production cost decisions from unleased interests.
Continue Reading Long-Awaited Victory on the Proper Deductibility of Post-Production Costs from Unleased Mineral Owners – The Western District of Louisiana Reverses Course in Johnson v. Chesapeake and Self v. BPX