Oil And Gas Contract Drafting Lessons From Texas Ruling
4 years ago
[ad_1]
Law360 (April 1, 2021, 4:35 PM EDT) — On March 12, the Supreme Court of Texas issued a unanimous opinion that clarifies when a lessee is entitled to deduct post-production costs from royalties paid to the lessor under oil and gas leases.[1]
Construing a lease and an addendum to the lease, the court in BlueStone Natural Resources II LLC v. Randle held that the “gross value received” language in the addendum constitutes a valuation point at the point of sale — which does not allow deduction of post-production costs — that conflicted with the form lease’s “at the well” provision — which generally allows such deductions.
Because the addendum…
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!