A Delaware bankruptcy judge has ruled in the SemCrude bankruptcy that the claims of Texas producers for unpaid revenues from oil sales are subordinate to the claims of SemCrude’s bankers. As a result, the Texas producers (and perhaps their royalty owners) may lose up to $57 million. SemCrude filed for…
Last week I discussed Wagner & Brown v. Sheppard, a recent Texas Supreme Court case that involved a lease termination clause. Sheppard’s lease in that case provided that, if royalties were not paid to her within 120 days after first production, the lease would automatically terminate. That is exactly what…