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98 99 100 </head> 101 <body class="willow willow-responsive archive category category-post-production-costs category-8 wp-theme-Willow-Responsive"> 102 <div id="top-numbers-v2" class="tnv2-sticky"> <ul> <li>Contact Us Now: <strong>512-480-5618</strong> <a class="tnv2-button" rel="nofollow" href="tel:512-480-5618" data-gtm-location="Sticky Header" data-gtm-value="512-480-5618" data-gtm-action="Contact" data-gtm-category="Phones" data-gtm-device="Mobile" data-gtm-event="phone_contact" data-gtm-label="Call" data-gtm-target="Button" data-gtm-type="click">Tap Here To Call Us</a> </li> </ul> </div> 103 104<div id="fb-root"></div> 105 106 <div class="container"> 107 <div class="cwrap"> 108 109 <!-- HEADER --> 110 <header id="header" role="banner"> 111 <div id="head" class="header-tag-group"> 112 113 <div id="logo"> 114 <a href="https://www.oilandgaslawyerblog.com/"> <img src="/jresources/v/20220909202307/images/logo.png" id="mainlogo" alt="John McFarland" /> 115 Oil and Gas Lawyer Blog</a> 116 </div> 117 <div id="tagline"><a target="_blank" href="http://www.gdhm.com/" class="tagline-link tagline-text">Published By John McFarland</a></div> 118 </div><!--/#head--> 119 <nav id="main-nav" role="navigation"> 120 <span class="visuallyhidden">Navigation</span> 121 <div id="topnav" class="topnav nav-custom"><ul id="tnav-toplevel" class="menu"><li id="menu-item-8" class="priority_1 menu-item menu-item-type-custom menu-item-object-custom menu-item-home menu-item-8"><a href="https://www.oilandgaslawyerblog.com/">Home</a></li> 122<li id="menu-item-9" class="priority_2 menu-item menu-item-type-custom menu-item-object-custom menu-item-9"><a target="_blank" href="http://www.gdhm.com/">Firm Website</a></li> 123<li id="menu-item-21" class="priority_3 menu-item menu-item-type-custom menu-item-object-custom menu-item-21"><a target="_blank" href="http://www.gdhm.com/attorneys/john-b-mcfarland/">About</a></li> 124<li id="menu-item-22" class="priority_4 menu-item menu-item-type-post_type menu-item-object-page menu-item-22"><a href="https://www.oilandgaslawyerblog.com/resources/">Resources</a></li> 125<li id="menu-item-23" class="priority_1 menu-item menu-item-type-post_type menu-item-object-page menu-item-23"><a href="https://www.oilandgaslawyerblog.com/contact-us/">Contact Us</a></li> 126</ul></div> </nav> 127 <div class="imgwrap"><div id="img1"></div></div> </header> 128 129 130 131 <!-- MAIN --> 132 <div id="main"> 133 <div class="mwrap"> 134 135 136 <section class="content"> 137 <div class="bodytext"> 138 <section class="archive_page_heading category_page_heading"> 139 <header> 140 <h1 class="archive-title"> 141 <span class="category-heading-label">Articles Posted in</span> <span class="category_name">Post-Production Costs</span> </h1> 142 143 </header> 144 </section> 145 146 147<article id="post-2617" class="entry post-2617 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 148 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/city-of-crowley-v-totalenergies-another-case-on-post-production-costs/" /> 149 <div class="inner-wrapper"> 150 <header> 151 152 153 154 <div id="default-featured-image-2617-post-id-2617" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 155 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" /> 156 <meta itemprop="width" content="1200" /> 157 <meta itemprop="height" content="1200" /> 158 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 159</div> 160 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2026-05-04T11:18:45-05:00" class="post-date published" itemprop="datePublished" pubdate>May 4, 2026</time></div> 161 162 163 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/city-of-crowley-v-totalenergies-another-case-on-post-production-costs/" itemprop="url" title="Permalink to City of Crowley v. TotalEnergies – Another Case on Post-Production Costs" rel="bookmark">City of Crowley v. TotalEnergies – Another Case on Post-Production Costs</a> 164 </h2> 165 <meta itemprop="headline" content="City of Crowley v. TotalEnergies – Another Case on Post-Production Costs" /> 166 167 168 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 169 170 <div class="sharelinks sharelinks-2617 sharelinks-horizontal" id="sharelinks-2617"> 171 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-Gd&text=City+of+Crowley+v.+TotalEnergies+-+Another+Case+on+Post-Production+Costs&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/sh
171are/twitter.gif" alt="Tweet this Post" /></a> 172 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fcity-of-crowley-v-totalenergies-another-case-on-post-production-costs%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 173 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fcity-of-crowley-v-totalenergies-another-case-on-post-production-costs%2F&title=City+of+Crowley+v.+TotalEnergies+-+Another+Case+on+Post-Production+Costs&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 174</div> </header> 175 <div class="content" itemprop="articleBody"> 176 <div class="entry-content"> 177 <p>Last July the Fort Worth Court of Appeals decided <a href="https://search.txcourts.gov/SearchMedia.aspx?MediaVersionID=61bfda5c-fde0-413d-b0b1-2896e7831e31&coa=coa02&DT=Opinion&MediaID=97195749-3d62-47da-bd76-e742695eb0ec"><em>City of Crowley v. TotalEnergies E&P USA, Inc.</em></a> Last week the Texas Supreme Court denied the City’s petition for review. Another case in which <em>Heritage v. NationsBank</em> has raised its ugly head.</p> 178<p>The City’s lease had the following provisions related to how its royalty should be calculated:</p> 179<p style="padding-left: 40px">⢠The Lessee is to pay the Lessor âthe Royalty Fraction of the market value at the point of sale, use, or other dispositionâ (the âValuation Provisionâ); 180</p> 181<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/city-of-crowley-v-totalenergies-another-case-on-post-production-costs/" title="Continue Reading City of Crowley v. TotalEnergies – Another Case on Post-Production Costs" class="more-link">Continue reading â</a></div> 182 </div> 183 </div> 184 <footer> 185 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 186 <meta itemprop="name" content="John McFarland" /> 187 188<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 189 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 190 <meta itemprop="height" content="60" /> 191 <meta itemprop="width" content="288" /> 192 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 193</div> 194 </div> 195 196 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div> 197 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2026-05-04T11:18:45-05:00" class="post-date published" itemprop="datePublished" pubdate>May 4, 2026</time></div> <div class="visuallyhidden">Updated: 198 <time datetime="2026-05-13T13:51:25-05:00" class="updated" itemprop="dateModified">May 13, 2026 1:51 pm</time> 199 </div> 200 201 202 203 204 205 </footer> 206 207 </div> 208</article> 209 210 211<article id="post-2522" class="entry post-2522 post type-post status-publish format-standard hentry category-post-production-costs" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 212 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/fasken-v-puig-another-post-production-cost-case/" /> 213 <div class="inner-wrapper"> 214 <header> 215 216 217 218 <div id="default-featured-image-2522-post-id-2522" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 219 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" />
220 <meta itemprop="width" content="1200" /> 221 <meta itemprop="height" content="1200" /> 222 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 223</div> 224 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2024-11-07T17:05:05-06:00" class="post-date published" itemprop="datePublished" pubdate>November 7, 2024</time></div> 225 226 227 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/fasken-v-puig-another-post-production-cost-case/" itemprop="url" title="Permalink to Fasken v. Puig – Another Post-Production Cost Case" rel="bookmark">Fasken v. Puig – Another Post-Production Cost Case</a> 228 </h2> 229 <meta itemprop="headline" content="Fasken v. Puig – Another Post-Production Cost Case" /> 230 231 232 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 233 234 <div class="sharelinks sharelinks-2522 sharelinks-horizontal" id="sharelinks-2522"> 235 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-EG&text=Fasken+v.+Puig+-+Another+Post-Production+Cost+Case&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/twitter.gif" alt="Tweet this Post" /></a> 236 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Ffasken-v-puig-another-post-production-cost-case%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 237 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Ffasken-v-puig-another-post-production-cost-case%2F&title=Fasken+v.+Puig+-+Another+Post-Production+Cost+Case&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 238</div> </header> 239 <div class="content" itemprop="articleBody"> 240 <div class="entry-content"> 241 <p>In <a href="https://search.txcourts.gov/SearchMedia.aspx?MediaVersionID=8c3728ef-9482-4a5e-8918-ca3534e0ab89&coa=coa04&DT=Opinion&MediaID=5e64dbf1-33be-4a51-8597-2f8d3c61377a"><em>Fasken Oil and Ranch, Ltd. v. Puig</em></a>, No. 04-23-00106-CV, the San Antonio Court of Appeals was asked to construe a royalty reservation in a 1960 deed:</p> 242<p style="padding-left: 40px">There is saved, excepted and reserved, in favor of the undersigned, B.A. Puig, Jr., out of the above described property, an undivided one-sixteenth (1/16) of all the oil, gas and other minerals, except coal, in, to and under or that may be produced from the above described acreage, to be paid or delivered to Grantor, B.A. Puig, Jr., as his own property free of cost forever. Said interest hereby reserved is Non-Participating Royalty.</p> 243<p>Fasken operates wells on the property; the Puig descendants sued Fasken for deducting post-production costs from their royalty. The trial court agreed with Puig, and the court of appeals affirmed, in a well-reasoned opinion relying on the Supreme Court’s opinion in <a href="https://www.oilandgaslawyerblog.com/texas-supreme-court-rules-for-royalty-owners-in-chesapeake-v-hyder/"><em>Chesapeake Exploration v. Hyder</em></a>, 483 S.W.3d 870 (Tex. 2016). “Free and of all cost forever” means what it says and includes both production costs and post-production costs. The court distinguished <a href="https://search.txcourts.gov/Case.aspx?cn=95-0515&coa=cossup"><em>Heritage Resources v. Nationsbank</em></a>, 939 S.w.2d 118 (Tex. 1996) because unlike <em>Heritage</em> the royalty clause in this reservation “does not contain a valuation point.” The lease in <em>Heritage</em> provided that royalty was payable on the market value “at the well,”
243 the point at which royalty was valued for purposes of calculating royalty; so even though the lease also provided for no deductions from the lessors’ royalty, the Supreme Court said post-production costs incurred downstream of the well could be deducted.</p> 244<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/fasken-v-puig-another-post-production-cost-case/" title="Continue Reading Fasken v. Puig – Another Post-Production Cost Case" class="more-link">Continue reading â</a></div> 245 </div> 246 </div> 247 <footer> 248 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 249 <meta itemprop="name" content="John McFarland" /> 250 251<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 252 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 253 <meta itemprop="height" content="60" /> 254 <meta itemprop="width" content="288" /> 255 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 256</div> 257 </div> 258 259 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a></span></div> 260 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2024-11-07T17:05:05-06:00" class="post-date published" itemprop="datePublished" pubdate>November 7, 2024</time></div> <div class="visuallyhidden">Updated: 261 <time datetime="2024-11-07T17:05:05-06:00" class="updated" itemprop="dateModified">November 7, 2024 5:05 pm</time> 262 </div> 263 264 265 266 267 268 </footer> 269 270 </div> 271</article> 272 273 274<article id="post-2492" class="entry post-2492 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 275 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/texas-supreme-court-once-again-rules-against-royalty-owners-in-post-production-costs-case/" /> 276 <div class="inner-wrapper"> 277 <header> 278 279 280 281 <div id="default-featured-image-2492-post-id-2492" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 282 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" /> 283 <meta itemprop="width" content="1200" /> 284 <meta itemprop="height" content="1200" /> 285 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 286</div> 287 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2024-05-17T12:46:38-05:00" class="post-date published" itemprop="datePublished" pubdate>May 17, 2024</time></div> 288 289 290 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/texas-supreme-court-once-again-rules-against-royalty-owners-in-post-production-costs-case/" itemprop="url" title="Permalink to Texas Supreme Court once again rules against royalty owners in post-production costs case" rel="bookmark">Texas Supreme Court once again rules against royalty owners in post-production costs case</a> 291 </h2> 292 <meta itemprop="headline" content="Texas Supreme Court once again rules against royalty owners in post-production costs case" /> 293 294 295 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 296 297 <div class="sharelinks sharelinks-2492 sharelinks-horizontal" id="sharelinks-2492"> 298 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-Ec&text=Texas+Supreme+Court+once+again+rules+against+royalty+owners+in+post-production+costs+case&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/sh
298are/twitter.gif" alt="Tweet this Post" /></a> 299 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Ftexas-supreme-court-once-again-rules-against-royalty-owners-in-post-production-costs-case%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 300 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Ftexas-supreme-court-once-again-rules-against-royalty-owners-in-post-production-costs-case%2F&title=Texas+Supreme+Court+once+again+rules+against+royalty+owners+in+post-production+costs+case&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 301</div> </header> 302 <div class="content" itemprop="articleBody"> 303 <div class="entry-content"> 304 <p>Today the Texas Supreme Court decided <em><a href="https://www.txcourts.gov/media/1458547/240036.pdf">Carl v. Hilcorp Energy Co</a>, </em>No. 24-0036. Its opinion addresses certified questions submitted to it by the US Fifth Circuit Court of Appeals concerning a class action suit pending in that court.</p> 305<p>The Carls’ lease provided for payment of gas royalty based on its “market value at the well.” The lease also provided that royalty must be paid on gas “sold or used off the premises.” Hilcorp used some of the gas produced “off the premises” to transport or process the gas produced from the lease. Hilcorp did not pay royalty on the gas used. The Texas Supreme Court agreed with Hilcorp that it owes no royalty on the gas used off the premises.</p> 306<p>This is another in a long line of cases in which the Court relies on its flawed reasoning in <em>Heritage Resources v. Nationsbank</em>. The Court’s reasoning: because the measure of gas royalty is “market value at the well,” the lessor must bear its share of post-production costs. Hilcorp’s use of gas for post-production costs must therefore be part of the cost borne by the lessor. One way to do that is to not pay royalty on the gas used. So, even though the lease provides for royalty on gas “used off the premises,” Hilcorp need not pay royalty on such gas as long as it is used to enhance the value of the gas after it leaves the lease. If Hilcorp were to use some of the gas for other purposes, royalty would be due.</p> 307<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/texas-supreme-court-once-again-rules-against-royalty-owners-in-post-production-costs-case/" title="Continue Reading Texas Supreme Court once again rules against royalty owners in post-production costs case" class="more-link">Continue reading â</a></div> 308 </div> 309 </div> 310 <footer> 311 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 312 <meta itemprop="name" content="John McFarland" /> 313 314<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 315 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 316 <meta itemprop="height" content="60" /> 317 <meta itemprop="width" content="288" /> 318 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 319</div> 320 </div> 321 322 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div> 323 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2024-05-17T12:46:38-05:00" class="post-date published" itemprop="datePublished" pubdate>May 17, 2024</time></div> <div class="visuallyhidden">Updated: 324 <time datetime="2024-05-17T12:46:38-05:00" class="updated" itemprop="dateModified">May 17, 2024 12:46 pm</time> 325 </div> 326 327 328 329 330 331 </footer> 332 333 </div> 334</article> 335 336 337<article id="post-2477" class="entry post-2477 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 338 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/white-v-hilcorp-heritage-v-nationsbank-again-rears-its-ugly-head/" /> 339 <div class="inner-wrapper"> 340 <header> 341 342 343 344 <div id="default-featured-image-2477-post-id-2477" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 345 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" />
346 <meta itemprop="width" content="1200" /> 347 <meta itemprop="height" content="1200" /> 348 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 349</div> 350 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2024-03-15T11:14:52-05:00" class="post-date published" itemprop="datePublished" pubdate>March 15, 2024</time></div> 351 352 353 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/white-v-hilcorp-heritage-v-nationsbank-again-rears-its-ugly-head/" itemprop="url" title="Permalink to White v. Hilcorp – Heritage v. Nationsbank Again Rears its Ugly Head" rel="bookmark">White v. Hilcorp – Heritage v. Nationsbank Again Rears its Ugly Head</a> 354 </h2> 355 <meta itemprop="headline" content="White v. Hilcorp – Heritage v. Nationsbank Again Rears its Ugly Head" /> 356 357 358 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 359 360 <div class="sharelinks sharelinks-2477 sharelinks-horizontal" id="sharelinks-2477"> 361 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-DX&text=White+v.+Hilcorp+-+Heritage+v.+Nationsbank+Again+Rears+its+Ugly+Head&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/twitter.gif" alt="Tweet this Post" /></a> 362 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fwhite-v-hilcorp-heritage-v-nationsbank-again-rears-its-ugly-head%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 363 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fwhite-v-hilcorp-heritage-v-nationsbank-again-rears-its-ugly-head%2F&title=White+v.+Hilcorp+-+Heritage+v.+Nationsbank+Again+Rears+its+Ugly+Head&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 364</div> </header> 365 <div class="content" itemprop="articleBody"> 366 <div class="entry-content"> 367 <p>In January the US 5th Circuit Court of Appeals submitted a “certified question” to the Texas Supreme Court. Federal courts have jurisdiction over cases involving only state-law issues if the parties are from different states – diversity jurisdiction. This is one such case. <a href="https://search.txcourts.gov/Case.aspx?cn=24-0036&coa=cossup"><em>Carl v. Hilcorp Energy Company</em></a>, No. 24-0036.</p> 368<p>The trustees of the Carl/White Trust sued Hilcorp Energy on behalf of royalty owners with language in their leases providing that the lessee must pay royalties on gas “sold or used off the premises.” The suit seeks class-action status on behalf of these royalty owners. The Trust’s lease also provides that royalty on gas should be paid on the “market value at the well.” Hilcorp moved to dismiss the claim, arguing that under a “market-value-at-the-well” lease, Hilcorp was allowed to deduct all post-production costs and therefore had no obligation to pay for gas used in processing. The trial court agreed with Hilcorp and dismissed the case; the Trust appealed to the 5th Circuit.</p> 369<p>When a case in federal court is governed by state law, a federal appeals court may ask the state’s top court to opine on a question of law critical to its case – to submit the question as a “certified question” to the state court. The 5th Circuit did so here, asking the Texas Supreme Court: “can a market-value-at-the-well lease containing an off-lease-use-of-gas clause and a free-on-lease-use clause be interpreted to allow for the deduction of gas used off lease in the post-production process?” The Texas Supreme Court agreed to consider the question, and the parties have submitted briefs. Two amicus briefs, one from Texas Oil & Gas Association supporting Hilcorp’s arguments, and one by Texas Land & Mineral Association and National Association of Royalty Owners-Texas, Inc., supporting the Trusts’ arguments.</p> 370<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/white-v-hilcorp-heritage-v-nationsbank-again-rears-its-ugly-head/" title="Continue Reading White v. Hilcorp – Heritage v. Nationsbank Again Rears its Ugly Head" class="more-link">Continue reading â</a></div> 371 </div> 372 </div> 373 <footer> 374 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 375 <meta itemprop="name" content="John McFarland" /> 376 377<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 378 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 379 <meta itemprop="height" content="60" /> 380 <meta itemprop="width" content="288" /> 381 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 382</div> 383 </div> 384 385 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div> 386 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2024-03-15T11:14:52-05:00" class="post-date published" itemprop="datePublished" pubdate>March 15, 2024</time></div> <div class="visuallyhidden">Updated: 387 <time datetime="2024-03-15T11:14:52-05:00" class="updated" itemprop="dateModified">March 15, 2024 11:14 am</time> 388 </div> 389 390 391 392 393 394 </footer> 395 396 </div> 397</article> 398 399 400<article id="post-2436" class="entry post-2436 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 401 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/federal-district-court-addresses-post-production-costs-in-light-of-devon-v-sheppard/" /> 402 <div class="inner-wrapper"> 403 <header> 404 405 406 407 <div id="default-featured-image-2436-post-id-2436" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 408 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" />
409 <meta itemprop="width" content="1200" /> 410 <meta itemprop="height" content="1200" /> 411 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 412</div> 413 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2023-08-18T13:55:26-05:00" class="post-date published" itemprop="datePublished" pubdate>August 18, 2023</time></div> 414 415 416 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/federal-district-court-addresses-post-production-costs-in-light-of-devon-v-sheppard/" itemprop="url" title="Permalink to Federal District Court Addresses Post-Production Costs in Light of Devon v. Sheppard" rel="bookmark">Federal District Court Addresses Post-Production Costs in Light of Devon v. Sheppard</a> 417 </h2> 418 <meta itemprop="headline" content="Federal District Court Addresses Post-Production Costs in Light of Devon v. Sheppard" /> 419 420 421 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 422 423 <div class="sharelinks sharelinks-2436 sharelinks-horizontal" id="sharelinks-2436"> 424 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-Di&text=Federal+District+Court+Addresses+Post-Production+Costs+in+Light+of+Devon+v.+Sheppard&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/twitter.gif" alt="Tweet this Post" /></a> 425 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Ffederal-district-court-addresses-post-production-costs-in-light-of-devon-v-sheppard%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 426 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Ffederal-district-court-addresses-post-production-costs-in-light-of-devon-v-sheppard%2F&title=Federal+District+Court+Addresses+Post-Production+Costs+in+Light+of+Devon+v.+Sheppard&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 427</div> </header> 428 <div class="content" itemprop="articleBody"> 429 <div class="entry-content"> 430 <p>The federal district court in Pecos, Judge David Counts, issued a memorandum opinion in <em>H.L. Hawkins, Jr., Inc. v. Capitan Energy</em>, <em>Inc.,</em> P:22-CV-DC<a href="https://www.oilandgaslawyerblog.com/files/2023/08/Hawkins.pdf">[Hawkins</a>] addressing Hawkins’ claim that Capitan had improperly deducted post-production costs from its royalty. The Court held that the reasoning in the recent Texas Supreme Court case of <em>Devon v. Sheppard</em> was of no help to Hawkins.</p> 431<p>Hawkins’ lease reserved a royalty of “one-fourth of the gross proceeds received by Lessee,” and contained a free-royalty provision:</p> 432<p style="padding-left: 40px"><em>Lessor’s royalty shall not bear or be charged with, directly or indirectly, any cost or expense incurred by Lessee</em>, including without limitation, for exploring, drilling, testing, completing, equipping, storing, separating, dehydrating, transporting, compressing, treating, gathering, or otherwise rendering marketable or marketing products, and no such deduction or reduction shall be made from the royalties payable to Lessor hereunder, provided, however, that Lessor’s interest shall bear its proportionate share of severance taxes and other taxes assessed against its interest or its share of production.</p> 433<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/federal-district-court-addresses-post-production-costs-in-light-of-devon-v-sheppard/" title="Continue Reading Federal District Court Addresses Post-Production Costs in Light of Devon v. Sheppard" class="more-link">Continue reading â</a></div> 434 </div> 435 </div> 436 <footer> 437 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 438 <meta itemprop="name" content="John McFarland" /> 439 440<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 441 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 442 <meta itemprop="height" content="60" /> 443 <meta itemprop="width" content="288" /> 444 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 445</div> 446 </div> 447 448 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div> 449 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2023-08-18T13:55:26-05:00" class="post-date published" itemprop="datePublished" pubdate>August 18, 2023</time></div> <div class="visuallyhidden">Updated: 450 <time datetime="2023-08-18T13:55:26-05:00" class="updated" itemprop="dateModified">August 18, 2023 1:55 pm</time> 451 </div> 452 453 454 455 456 457 </footer> 458 459 </div> 460</article> 461 462 463<article id="post-2388" class="entry post-2388 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 464 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/devon-v-sheppard-a-win-for-royalty-owners/" /> 465 <div class="inner-wrapper"> 466 <header> 467 468 469 470 <div id="default-featured-image-2388-post-id-2388" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 471 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" />
472 <meta itemprop="width" content="1200" /> 473 <meta itemprop="height" content="1200" /> 474 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 475</div> 476 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2023-03-10T12:17:20-06:00" class="post-date published" itemprop="datePublished" pubdate>March 10, 2023</time></div> 477 478 479 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/devon-v-sheppard-a-win-for-royalty-owners/" itemprop="url" title="Permalink to Devon v. Sheppard — A Win for Royalty Owners" rel="bookmark">Devon v. Sheppard — A Win for Royalty Owners</a> 480 </h2> 481 <meta itemprop="headline" content="Devon v. Sheppard — A Win for Royalty Owners" /> 482 483 484 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 485 486 <div class="sharelinks sharelinks-2388 sharelinks-horizontal" id="sharelinks-2388"> 487 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-Cw&text=Devon+v.+Sheppard+--+A+Win+for+Royalty+Owners&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/twitter.gif" alt="Tweet this Post" /></a> 488 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fdevon-v-sheppard-a-win-for-royalty-owners%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 489 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fdevon-v-sheppard-a-win-for-royalty-owners%2F&title=Devon+v.+Sheppard+--+A+Win+for+Royalty+Owners&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 490</div> </header> 491 <div class="content" itemprop="articleBody"> 492 <div class="entry-content"> 493 <p>Today the Texas Supreme Court issued its opinion in <em>Devon v. Sheppard,</em>
493 No. 20-0904, again addressing post-production cost deductions from royalties. The Court affirmed the court of appeals’ ruling in favor of the royalty owners.</p> 494<p>Sheppard leased minerals in the Eagle Ford Shale in 2007, before the first successful well in the Eagle Ford. Sheppard is a lawyer in Cuero, Texas. His lease required payment of royalties on gross proceeds of sale, without deduction of post-production costs. The lease also contained this provision:</p> 495<p style="padding-left: 40px">If any disposition, contract or sale of oil or gas shall include any reduction or charge for the expenses or costs of production, treatment, transportation, manufacturing, processing or marketing of the oil or gas, then such deduction, expense or costs shall be added to … gross proceeds so that Lessor’s royalty shall never be chargeable directly or indirectly with any costs or expenses other than its pro rata share of severance or production taxes.</p> 496<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/devon-v-sheppard-a-win-for-royalty-owners/" title="Continue Reading Devon v. Sheppard — A Win for Royalty Owners" class="more-link">Continue reading â</a></div> 497 </div> 498 </div> 499 <footer> 500 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 501 <meta itemprop="name" content="John McFarland" /> 502 503<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 504 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 505 <meta itemprop="height" content="60" /> 506 <meta itemprop="width" content="288" /> 507 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 508</div> 509 </div> 510 511 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div> 512 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2023-03-10T12:17:20-06:00" class="post-date published" itemprop="datePublished" pubdate>March 10, 2023</time></div> <div class="visuallyhidden">Updated: 513 <time datetime="2023-03-10T12:17:20-06:00" class="updated" itemprop="dateModified">March 10, 2023 12:17 pm</time> 514 </div> 515 516 517 518 519 520 </footer> 521 522 </div> 523</article> 524 525 526<article id="post-2361" class="entry post-2361 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 527 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/enervest-v-mayfield-another-loss-for-royalty-owners-on-post-production-costs/" /> 528 <div class="inner-wrapper"> 529 <header> 530 531 532 533 <div id="default-featured-image-2361-post-id-2361" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 534 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" /> 535 <meta itemprop="width" content="1200" /> 536 <meta itemprop="height" content="1200" /> 537 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 538</div> 539 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2022-11-08T11:12:05-06:00" class="post-date published" itemprop="datePublished" pubdate>November 8, 2022</time></div> 540 541 542 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/enervest-v-mayfield-another-loss-for-royalty-owners-on-post-production-costs/" itemprop="url" title="Permalink to EnerVest v. Mayfield – another loss for royalty owners on post-production costs" rel="bookmark">EnerVest v. Mayfield – another loss for royalty owners on post-production costs</a> 543 </h2> 544 <meta itemprop="headline" content="EnerVest v. Mayfield – another loss for royalty owners on post-production costs" /> 545 546 547 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 548 549 <div class="sharelinks sharelinks-2361 sharelinks-horizontal" id="sharelinks-2361"> 550 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-C5&text=EnerVest+v.+Mayfield+-+another+loss+for+royalty+owners+on+post-production+costs&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/sh
550are/twitter.gif" alt="Tweet this Post" /></a> 551 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fenervest-v-mayfield-another-loss-for-royalty-owners-on-post-production-costs%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 552 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fenervest-v-mayfield-another-loss-for-royalty-owners-on-post-production-costs%2F&title=EnerVest+v.+Mayfield+-+another+loss+for+royalty+owners+on+post-production+costs&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 553</div> </header> 554 <div class="content" itemprop="articleBody"> 555 <div class="entry-content"> 556 <p>Mayfield and Ingham leased several sections in Sutton County to EnerVest. EnerVest produces gas which goes to a gas plant for processing and pays royalty on the residue gas and natural gas liquids, after deducting post-production costs. The gas must be compressed and dehydrated before sale, and EnerVest does not pay royalty on the fuel used in compression and dehydration. Mayfield and Ingham sued EnerVest seeking royalties on the fuel gas.</p> 557<p>The San Antonio Court of Appeals held that, under the lease royalty provisions, EnerVest does not owe royalties on fuel gas.<a href="https://search.txcourts.gov/SearchMedia.aspx?MediaVersionID=56baa7b4-6c40-4fdf-b4ca-bc1a1279b6f8&coa=coa04&DT=Opinion&MediaID=299095fa-1d14-4593-af65-5fc56f32414a"> <em>EnerVest v. Mayfield</em></a>, No. 04-21-00337-CV.</p> 558<p>The lease provides for payment “on gas produced from said land and sold <em>or used off the premises</em>, ⦠the market value at the mouth of the well of one-eighth of the gas so sold or used.â Another lease clause provides:</p> 559<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/enervest-v-mayfield-another-loss-for-royalty-owners-on-post-production-costs/" title="Continue Reading EnerVest v. Mayfield – another loss for royalty owners on post-production costs" class="more-link">Continue reading â</a></div> 560 </div> 561 </div> 562 <footer> 563 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 564 <meta itemprop="name" content="John McFarland" /> 565 566<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 567 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 568 <meta itemprop="height" content="60" /> 569 <meta itemprop="width" content="288" /> 570 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 571</div> 572 </div> 573 574 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div> 575 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2022-11-08T11:12:05-06:00" class="post-date published" itemprop="datePublished" pubdate>November 8, 2022</time></div> <div class="visuallyhidden">Updated: 576 <time datetime="2022-11-08T11:12:05-06:00" class="updated" itemprop="dateModified">November 8, 2022 11:12 am</time> 577 </div> 578 579 580 581 582 583 </footer> 584 585 </div> 586</article> 587 588 589<article id="post-2259" class="entry post-2259 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 590 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/nettye-engler-energy-v-bluestone-natural-resources-texas-supreme-court-affirms-ruling-against-royalty-owner/" /> 591 <div class="inner-wrapper"> 592 <header> 593 594 595 596 <div id="default-featured-image-2259-post-id-2259" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 597 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" />
598 <meta itemprop="width" content="1200" /> 599 <meta itemprop="height" content="1200" /> 600 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 601</div> 602 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2022-02-09T17:31:48-06:00" class="post-date published" itemprop="datePublished" pubdate>February 9, 2022</time></div> 603 604 605 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/nettye-engler-energy-v-bluestone-natural-resources-texas-supreme-court-affirms-ruling-against-royalty-owner/" itemprop="url" title="Permalink to Nettye Engler Energy v. Bluestone Natural Resources: Texas Supreme Court affirms ruling against royalty owner" rel="bookmark">Nettye Engler Energy v. Bluestone Natural Resources: Texas Supreme Court affirms ruling against royalty owner</a> 606 </h2> 607 <meta itemprop="headline" content="Nettye Engler Energy v. Bluestone Natural Resources: Texas Supreme Court affirms ruling against royalty owner" /> 608 609 610 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 611 612 <div class="sharelinks sharelinks-2259 sharelinks-horizontal" id="sharelinks-2259"> 613 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-Ar&text=Nettye+Engler+Energy+v.+Bluestone+Natural+Resources%3A+Texas+Supreme+Court+affirms+ruling+against+royalty+owner&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/twitter.gif" alt="Tweet this Post" /></a> 614 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fnettye-engler-energy-v-bluestone-natural-resources-texas-supreme-court-affirms-ruling-against-royalty-owner%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 615 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fnettye-engler-energy-v-bluestone-natural-resources-texas-supreme-court-affirms-ruling-against-royalty-owner%2F&title=Nettye+Engler+Energy+v.+Bluestone+Natural+Resources%3A+Texas+Supreme+Court+affirms+ruling+against+royalty+owner&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 616</div> </header> 617 <div class="content" itemprop="articleBody"> 618 <div class="entry-content"> 619 <p>Last week the Texas Supreme Court handed down its <a href="https://search.txcourts.gov/SearchMedia.aspx?MediaVersionID=0f153153-6b5f-42cc-bd93-a4ad33891b9d&coa=cossup&DT=OPINION&MediaID=5ddb279f-3c94-4610-a9a4-429099cdf885">opinion in </a><em>Nettye Engler Energy, LP v. Bluestone Natural Resources II, LLC, </em>No. 20-0639, affirming the lower court’s ruling that Engler’s royalty interest bears its share of gas gathering and processing costs.</p> 620<p>Engler owns a royalty interest in a section of land in Tarrant County on which Bluestone owns a lease and operates gas wells. Englerâs royalty interest originated in a deed in which the grantor reserved a one-eighth non-participating royalty interest. The deed provides that the grantor reserves âa free one-eighth (1/8) of production ⦠to be delivered to Grantorâs credit, free of cost in the pipe line, if any, otherwise free of cost at the mouth of the well or mine.â</p> 621<p>
621Bluestone contracted with Crestwood Equity Partners to gather its gas through a gathering system owned by Crestwood and deliver it to various delivery points through a processing plant and into a pipeline owned by Energy Transfer, where the gas is sold. Bluestone deducted the gathering fees charged by Crestwood from Englerâs royalty, and the plant processing fees incurred before the gas was sold.<span id="more-2088"></span></p> 622<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/nettye-engler-energy-v-bluestone-natural-resources-texas-supreme-court-affirms-ruling-against-royalty-owner/" title="Continue Reading Nettye Engler Energy v. Bluestone Natural Resources: Texas Supreme Court affirms ruling against royalty owner" class="more-link">Continue reading â</a></div> 623 </div> 624 </div> 625 <footer> 626 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 627 <meta itemprop="name" content="John McFarland" /> 628 629<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 630 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 631 <meta itemprop="height" content="60" /> 632 <meta itemprop="width" content="288" /> 633 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 634</div> 635 </div> 636 637 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div> 638 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2022-02-09T17:31:48-06:00" class="post-date published" itemprop="datePublished" pubdate>February 9, 2022</time></div> <div class="visuallyhidden">Updated: 639 <time datetime="2022-02-09T17:31:48-06:00" class="updated" itemprop="dateModified">February 9, 2022 5:31 pm</time> 640 </div> 641 642 643 644 645 646 </footer> 647 648 </div> 649</article> 650 651 652<article id="post-2240" class="entry post-2240 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 653 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/two-texas-federal-district-courts-weigh-in-on-post-production-costs/" /> 654 <div class="inner-wrapper"> 655 <header> 656 657 658 659 <div id="default-featured-image-2240-post-id-2240" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 660 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" /> 661 <meta itemprop="width" content="1200" /> 662 <meta itemprop="height" content="1200" /> 663 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 664</div> 665 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2022-01-13T14:54:28-06:00" class="post-date published" itemprop="datePublished" pubdate>January 13, 2022</time></div> 666 667 668 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/two-texas-federal-district-court
668s-weigh-in-on-post-production-costs/" itemprop="url" title="Permalink to Two Texas Federal District Courts Weigh In On Post-Production Costs" rel="bookmark">Two Texas Federal District Courts Weigh In On Post-Production Costs</a> 669 </h2> 670 <meta itemprop="headline" content="Two Texas Federal District Courts Weigh In On Post-Production Costs" /> 671 672 673 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 674 675 <div class="sharelinks sharelinks-2240 sharelinks-horizontal" id="sharelinks-2240"> 676 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-A8&text=Two+Texas+Federal+District+Courts+Weigh+In+On+Post-Production+Costs&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/twitter.gif" alt="Tweet this Post" /></a> 677 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Ftwo-texas-federal-district-courts-weigh-in-on-post-production-costs%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 678 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Ftwo-texas-federal-district-courts-weigh-in-on-post-production-costs%2F&title=Two+Texas+Federal+District+Courts+Weigh+In+On+Post-Production+Costs&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 679</div> </header> 680 <div class="content" itemprop="articleBody"> 681 <div class="entry-content"> 682 <p>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.</p> 683<p>In <em>Carl v. Hilcorp Energy</em>, No. 4:21-CV-02133, Judge Keith Ellison construed a lease with the following provisions:</p> 684<p style="padding-left: 40px">The royalties to be paid be Lessee are: … on gas, including casinghead gas or other gaseous substance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other product therefrom, the market value at the well of one-eighth of the gas so sold or used ..</p> 685<div class="read_more_link"><a href="https://www.oilandgaslawyerblog.com/two-texas-federal-district-courts-weigh-in-on-post-production-costs/" title="Continue Reading Two Texas Federal District Courts Weigh In On Post-Production Costs" class="more-link">Continue reading â</a></div> 686 </div> 687 </div> 688 <footer> 689 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 690 <meta itemprop="name" content="John McFarland" /> 691 692<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 693 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 694 <meta itemprop="height" content="60" /> 695 <meta itemprop="width" content="288" /> 696 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 697</div> 698 </div> 699 700 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div> 701 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2022-01-13T14:54:28-06:00" class="post-date published" itemprop="datePublished" pubdate>January 13, 2022</time></div> <div class="visuallyhidden">Updated: 702 <time datetime="2022-01-13T14:54:28-06:00" class="updated" itemprop="dateModified">January 13, 2022 2:54 pm</time> 703 </div> 704 705 706 707 708 709 </footer> 710 711 </div> 712</article> 713 714 715<article id="post-2129" class="entry post-2129 post type-post status-publish format-standard hentry category-post-production-costs category-recent-cases tag-oilandgaslaw" itemprop="blogPost" itemtype="http://schema.org/BlogPosting" itemscope> 716 <link itemprop="mainEntityOfPage" href="https://www.oilandgaslawyerblog.com/bluestone-v-randle-a-win-for-royalty-owners-on-post-production-costs/" /> 717 <div class="inner-wrapper"> 718 <header> 719 720 721 722 <div id="default-featured-image-2129-post-id-2129" itemprop="image" itemtype="http://schema.org/ImageObject" itemscope> 723 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2019/06/social-image-logo-og.png" />
724 <meta itemprop="width" content="1200" /> 725 <meta itemprop="height" content="1200" /> 726 <meta itemprop="representativeOfPage" content="http://schema.org/False" /> 727</div> 728 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2021-03-24T16:06:30-05:00" class="post-date published" itemprop="datePublished" pubdate>March 24, 2021</time></div> 729 730 731 <h2 class="entry-title" itemprop="name"> <a href="https://www.oilandgaslawyerblog.com/bluestone-v-randle-a-win-for-royalty-owners-on-post-production-costs/" itemprop="url" title="Permalink to BlueStone v. Randle — A Win for Royalty Owners on Post-Production Costs" rel="bookmark">BlueStone v. Randle — A Win for Royalty Owners on Post-Production Costs</a> 732 </h2> 733 <meta itemprop="headline" content="BlueStone v. Randle — A Win for Royalty Owners on Post-Production Costs" /> 734 735 736 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> 737 738 <div class="sharelinks sharelinks-2129 sharelinks-horizontal" id="sharelinks-2129"> 739 <a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Fwp.me%2Fp7DuLC-yl&text=BlueStone+v.+Randle+--+A+Win+for+Royalty+Owners+on+Post-Production+Costs&related=TXOilGasLawPro%3APost+Author" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/twitter.gif" alt="Tweet this Post" /></a> 740 <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fbluestone-v-randle-a-win-for-royalty-owners-on-post-production-costs%2F" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/fb.gif" alt="Share on Facebook" /></a> 741 <a href="http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.oilandgaslawyerblog.com%2Fbluestone-v-randle-a-win-for-royalty-owners-on-post-production-costs%2F&title=BlueStone+v.+Randle+--+A+Win+for+Royalty+Owners+on+Post-Production+Costs&source=Oil+and+Gas+Lawyer+Blog" target="_blank" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"><img src="https://www.oilandgaslawyerblog.com/wp-content/themes/Willow-Responsive/images/share/linkedin.gif" alt="Share on LinkedIn" /></a> 742</div> </header> 743 <div class="content" itemprop="articleBody"> 744 <div class="entry-content"> 745 <p style="text-align: left"><a href="https://www.oilandgaslawyerblog.com/files/2020/03/Top-Ten.jpg"><img decoding="async" class="wp-image-1916 alignright" src="https://www.oilandgaslawyerblog.com/files/2020/03/Top-Ten.jpg" alt="Top-Ten" width="103" height="136" srcset="https://www.oilandgaslawyerblog.com/files/2020/03/Top-Ten.jpg 637w, https://www.oilandgaslawyerblog.com/files/2020/03/Top-Ten-226x300.jpg 226w, https://www.oilandgaslawyerblog.com/files/2020/03/Top-Ten-91x120.jpg 91w" sizes="(max-width: 103px) 100vw, 103px" /></a>On March 12 the Texas Supreme Court issued its opinion in <em>BlueStone Natural Resources II, LLC v. Walker Murray Randle, </em>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 post-production costs and attempts to reconcile those prior opinions and clarify its views on the issue. I believe the opinion does provide clarification and substantially reduces the precedential value of its first case addressing post-production costs, <em>Heritage v.</em> <em>Nationsbank. </em>The Court also discusses when royalties must be paid on gas used as fuel. Because I consider this an important case on post-production costs, I will examine the opinion in some detail. <a href="https://www.oilandgaslawyerblog.com/bluestone-v-randle-a-win-for-royalty-owners-on-post-production-costs/#more-2129" class="more-link">Continue reading â</a></p> 746 </div> 747 </div> 748 <footer> 749 <div class="author vcard">By <span itemprop="author" itemtype="http://schema.org/Person" itemscope><a href="http://www.gdhm.com/people_and_practices/bios/?ID=36" class="url fn author-jmcfarland1 author-2030 post-author-link" rel="author" target="_blank" itemprop="url"><span itemprop="name">John McFarland</span></a><meta itemprop="sameAs" content="https://twitter.com/TXOilGasLawPro" /><meta itemprop="sameAs" content="https://www.linkedin.com/pub/john-mcfarland/a/4a0/974" /><meta itemprop="sameAs" content="http://lawyers.justia.com/lawyer/john-mcfarland-254699" /></span></div> <div itemprop="publisher" itemtype="http://schema.org/Organization" itemscope> 750 <meta itemprop="name" content="John McFarland" /> 751 752<div itemprop="logo" itemtype="http://schema.org/ImageObject" itemscope> 753 <link itemprop="url" href="https://www.oilandgaslawyerblog.com/files/2016/06/GravesDoughertyHearonMoodyLogo.png" /> 754 <meta itemprop="height" content="60" /> 755 <meta itemprop="width" content="288" /> 756 <meta itemprop="representativeOfPage" content="http://schema.org/True" /> 757</div> 758 </div> 759 760 <div class="category-list"><span class="category-list-label">Posted in:</span> <span class="category-list-items"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/" title="View all posts in Post-Production Costs" class="category-post-production-costs term-8 post-category-link">Post-Production Costs</a> and <a href="https://www.oilandgaslawyerblog.com/category/recent-cases/" title="View all posts in Recent Cases" class="category-recent-cases term-6 post-category-link">Recent Cases</a></span></div><div class="tag-list"><span class="tag-list-label">Tagged:</span> <span class="tag-list-items"><a href="https://www.oilandgaslawyerblog.com/tag/oilandgaslaw/" title="View all posts tagged with oilandgaslaw" class="tag-oilandgaslaw term-70 post-tag-link">oilandgaslaw</a></span></div> 761 <div class="published-date"><span class="published-date-label">Published on:</span> <time datetime="2021-03-24T16:06:30-05:00" class="post-date published" itemprop="datePublished" pubdate>March 24, 2021</time></div> <div class="visuallyhidden">Updated: 762 <time datetime="2021-03-26T14:36:24-05:00" class="updated" itemprop="dateModified">March 26, 2021 2:36 pm</time> 763 </div> 764 765 766 767 768 769 </footer> 770 771 </div> 772</article> 773 <div class="navigation"> 774 <nav id="pagination-simple" class="pagination pagination-simple" role="navigation"> 775 <div class="nav-next"><a href="https://www.oilandgaslawyerblog.com/category/post-production-costs/page/2/" >Next Page</a></div> 776 <div class="nav-previous"></div> 777 </nav> 778 </div> 779 780 </div> 781 782 <aside class="sidebar primary-sidebar sc-2 secondary-content" id="sc-2"> 783 </aside> 784 785 786 </section> 787 788 <aside class="sidebar secondary-sidebar sc-1 secondary-content" id="sc-1">
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Line numbers count LF bytes from the start of the resource, as the search results do. Vendor segments are library code the classifier recognised; they are stored but not indexed. Bytes are shown as Latin1 characters, one per byte.