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CHAPTER 12 PANEL DISCUSSION: HYPOTHETICAL ROYALTY CASE
Jurisdiction | United States |
(Apr 1993)
PANEL DISCUSSION: HYPOTHETICAL ROYALTY CASE
Law Offices of Dante Zarlengo
Denver, Colorado
Assume the following facts:
1. Grandpa Fudd owned the mineral estate underlying Black Acre, the family farm in Fuddrucker County, Oklahoma. On September 1, 1970, Grandpa Fudd executed an oil and gas lease on Black Acre in favor of Jones, a local lease broker. This lease provides for a 1/8 royalty based upon proceeds received from the sale of oil and gas produced from the lease premises, or if not sold at the wellhead, 1/8 of the value of the production from the leasehold.
2. Grandpa Fudd passes away in 1979, leaving title to Black Acre mineral estate to his son, Elmer, and to his close personal friend, Trixie. Elmer is a resident of Fuddrucker County. Trixie is currently a resident of Las Vegas, Nevada but would like to move to the south of France.
3. At about the same time, Grandpa Fudd's neighbors signed oil and gas leases on an identical lease form.
4. The leases from Grandpa Fudd and those from his neighbors are now owned by Major Oil X ("MOX"). MOX is incorporated in Delaware and maintains its primary office in Houston, Texas. MOX has drilled and successfully completed a number of oil and gas wells on Black Acre and the surrounding farms. In 1980, MOX unitized the entire neighborhood ("B-Unit"). Landman Jones secured ratification of the unit from...
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- Oil and Gas Royalties on Non-Federal Lands (FNREL)
- TABLE OF CONTENTS
- CHAPTER 1 ROYALTY INTERESTS IN THE UNITED STATES: NOT CUT FROM THE SAME CLOTH
- CHAPTER 2 GAS MARKETING ROYALTY ISSUES IN THE 1990s
- CHAPTER 3 PERFORMANCE OF THE LEASE ROYALTY CLAUSE: WHOSE RESPONSIBILITY IS IT?
- CHAPTER 4 OVERRIDING ROYALTIES AND LIKE INTERESTS—A REVIEW OF NONOPERATING LEASE INTERESTS
- CHAPTER 5 ROYALTY ISSUES ON LANDS OWNED BY STATE OR LOCAL GOVERNMENTS
- CHAPTER 6 DIVISION ORDER ISSUES IN THE 1990s: STATE POLICING OF AN UNRESPONSIVE INDUSTRY
- CHAPTER 7 STATE ROYALTY PAYMENT STATUTES GOVERNING STATE AND FEE LANDS
- CHAPTER 8 DRAFTING ISSUES WHICH IMPACT NON-FEDERAL ROYALTY: AN ANALYSIS OF SELECTIVE CURRENT MARKET FORCES
- CHAPTER 9 STRATEGIES AND PROCEDURAL ISSUES IN ROYALTY CASES
- CHAPTER 10 COMMON EVIDENTIARY AND DAMAGE ISSUES
- CHAPTER 11 THE AVAILABILITY OF ALTERNATIVE DISPUTE RESOLUTION IN FEE ROYALTY DISPUTES
- CHAPTER 12 PANEL DISCUSSION: HYPOTHETICAL ROYALTY CASE
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