As a landman, negotiating an oil and gas lease with a mineral owner requires a strategic approach and a thorough understanding of the industry. Here are some key steps to successfully navigate this process: Research and Preparation: Begin by conducting extensive research on the mineral owner, their property, and any existing leases in the area. […]
Texas Supreme Court Ruling Restricting Post-Production Deductions in New Royalty Clauses Now Being Tested in $100M Lawsuit Pay attention – there are some new royalty clauses in town and the Texas Supreme Court is interpreting them against oil and gas companies who attempt to deduct post-production costs from their lessor’s royalty payment. What’s unique about […]
In the ever-changing world of land management, continuous learning is not just beneficial; it is imperative. Our profession is multi-layered and constantly evolving, presenting us with new challenges and opportunities at every turn. Attending educational events, such as conferences, seminars, and workshops, not only allows us to stay up-to-date with the latest industry trends but […]
What is a “Washout Provision”? The term “washout provision” can be misleading because there is actually no such provision. Instead, it refers to the situation where an overriding royalty interest is created in an assignment of an oil and gas lease to a new owner. When the assigned lease expires, the overriding royalty interest […]
I keep getting questions on what the difference is between a fixed vs floating royalty is so I thought I would write this article to help explain the distinction. Landmark Case: The landmark case on whether a royalty is “fixed” or “floating” is U.S. Shale Energy II, LLC et al. vs. LaBorde Properties, LP, et […]
At long last, we are pleased to introduce our brand new Lease & Title Analyst Certificate Program! Designed to teach lease and title analysts and other land professionals in the oil and gas industry, the knowledge and skills necessary to be a competent and effective lease and title analyst. Lease & title analysts are an […]
I have some great news – the American Association of Professional Landmen published my article on allocation wells in their January/February issue of The Landman magazine! It’s the first time I’ve had an article appear there and I hope it won’t be the last. I am often asked what allocation wells are and how royalty is […]
In this third and final installment on allocation wells, we are going to examine the difference to the mineral owner in terms of which is better for them – an allocation well or a single well? Let’s assume we have a mineral owner with a 100% interest in a 320-acre tract of land and he […]
In the last newsletter, we learned that one of the formulas for calculating interests in an allocation well is: AllocationRoyalty Calculation Lateral length of horizontal well bore on lessor’s tract Total horizontal wellbore length This month, I thought it would be beneficial to apply the allocation tract factor and do an actual calculation based on […]
One question that I am repeatedly asked lately is what are Allocation Wells and how is royalty calculated in one for division order purposes? So, I thought I would answer those questions in this month’s newsletter and begin a series about this important current topic. For this month’s newsletter, we’ll answer these questions beginning with […]