In the Texas Rice Land Partners v. Denbury Green Pipeline-Texas, the Texas Supreme Court ruled that pipeline companies cannot use the power of eminent domain and call themselves a public carrier by checking a box and calling themselves a public
Landmark Texas Supreme Court Case Regarding Groundwater Rights
On February 24, 2012, the Texas Supreme Court issued a landmark ruling regarding groundwater rights. In Edwards Aquifer Authority v. Day, the Texas Supreme Court unanimously ruled that, under both the common law and the recently enacted Senate Bill 332,
HBP Defined
“HBP” means held by production. This is in reference to a provision in an oil & gas lease that extends the lease indefinitely past the primary term so long as there is production in paying quantities.
Production Payments Defined
A production payment is a right to oil, gas, or other minerals in place that entitles its owner to a specified fraction of production until a specified amount of money or minerals has been received. A production payment is payable
Temporary Cessation of Production
In Natural Gas Pipeline Company of America v. Pool, 124 S.W.3d 188 (Tex.2003), lessors under three oil and gas leases contended that the leases terminated because intermittently over the years there were periods of time ranging from 30 to 153
Overriding Royalty Interest Defined
An overriding royalty is a benefit an assignor receives when he or she assigns a leasehold interest. It is an interest which is carved out of, and constitutes part of, the working interest created by an oil and gas lease.
Carried Interest Defined
A “carried interest” in an oil and gas lease is a fractional interest that is free of some or all costs of exploring, drilling, and completing the well.
Oil and Gas Working Interest Defined
The oil and gas working interest is the right to the mineral interest granted by an oil and gas lease, so called because the lessee acquires the right to work on the leased property, search, develop, and produce oil and
Oil and Gas Royalty Defined
An oil and gas royalty is a share of the product or profit from real property, reserved by the grantor of a mineral lease in exchange for the lessee’s right to mine or drill on the land. Black’s Law Dictionary
Rule of Capture
That rule of capture gives a mineral rights owner title to the oil and gas produced from a lawful well bottomed on the property, even if the oil and gas flowed to the well from beneath another owner’s tract. The