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Articles Posted in Recent Cases

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Two Texas Federal District Courts Weigh In On Post-Production Costs

Two recent decisions from two federal judges in the Southern District of Texas, Houston Division, dismissed suits alleging class actions against Apache and Hilcorp for failure to pay royalties on gas used in gas processing plants. Both construed identical lease provisions. In Carl v. Hilcorp Energy, No. 4:21-CV-02133, Judge Keith…

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BPX v. Strickhausen: When does acceptance of royalty constitute ratification of a pooled unit?

Landowners are often faced with a conundrum: can they accept a royalty check if they believe it is in the wrong amount? Ms. Strickhausen owns a half interest in the minerals under a tract of land in La Salle County. Her minerals are subject to a lease owned by BPX…

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Travis County Court Holds Railroad Commission Has No Authority to Issue Permits for Allocation and Production Sharing Wells

Today a district court in Travis County held that the Texas Railroad Commission violated the Administrative Procedure Act by informally adopting rules for issuance of allocation and production sharing well permits without following the rule-making procedures of the Act. The Court ruled in an appeal by a mineral owner of…

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Collateral Attacks on Tax Foreclosure Sales vs. Due Process — Two Cases from El Paso Court of Appeals

Two unusual cases have recently been decided by the El Paso Court of Appeals, both arising out of the same underlying facts. Both deal with a tax foreclosure on royalty interests. In the late 1990s an attorney and two mineral buyers got together and proposed to taxing districts to handle…

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Sundown Energy v. HJSA No. 3 Limited Partnership: Another Poorly Drafted Retained Acreage Clause

Last week the Texas Supreme Court issued a per curiam opinion, without oral argument, reversing the judgment of the El Paso Court of Appeals  in Sundown Energy LP v. HJSA No. 3 Limited Partnership, No. 19-10654. The lease at issue covers 30,450 acres in Ward County. The case is another…

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BlueStone v. Randle — A Win for Royalty Owners on Post-Production Costs

On March 12 the Texas Supreme Court issued its opinion in BlueStone Natural Resources II, LLC v. Walker Murray Randle, No. 19-0459, affirming most of the judgment of the court below in favor of the royalty owners. The Court’s opinion contains a summary and discussion of its prior cases on…

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Endeavor v. Energen: What does a court do if a lease retained acreage clause is ambiguous?

A colleague recently pointed out to me that I had miss-read the Texas Supreme Court’s recent opinion in Endeavor Energy Resources v. Energen Resources Corporation. In my previous post on the case I said that the Court had concluded that the retained acreage clause being construed was ambiguous and had…

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Due Process and the No-Extrinsic-Evidence Rule: Challenges to Default Judgments When Service Was By Publication

Governmental entities in Texas like school districts, municipalities, hospital districts, and counties rely heavily on property taxes to finance their operations. Mineral interests are real property interests, and when a producing well is drilled the owners of rights to production from the well, both the working interest and the royalty…

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