TX SUPREME COURT CLARIFIES COMPETING LEASE ROYALTY LANGUAGE - GoHaynesvilleShale.com2024-03-28T14:15:45Zhttps://gohaynesvilleshale.com/forum/topics/tx-supreme-court-clarifies-competing-lease-royalty-language?commentId=2117179%3AComment%3A3979466&x=1&feed=yes&xn_auth=noI have two takeaways from thi…tag:gohaynesvilleshale.com,2021-03-31:2117179:Comment:39794662021-03-31T19:24:35.753ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I have two takeaways from this case ruling. The first is that just because someone says that a lease clause is a "no cost royalty" clause doesn't make it so from a legal standpoint. As the ruling and the article states, the specific wording of the clause is critical to making the prohibition on post production deductions clear. And that the addendum (exhibit) supersedes any conflicting language or clause in the form lease. So don't worry what form the lessee or its representative uses. …</p>
<p>I have two takeaways from this case ruling. The first is that just because someone says that a lease clause is a "no cost royalty" clause doesn't make it so from a legal standpoint. As the ruling and the article states, the specific wording of the clause is critical to making the prohibition on post production deductions clear. And that the addendum (exhibit) supersedes any conflicting language or clause in the form lease. So don't worry what form the lessee or its representative uses. Make sure that the addendum is clear, in line with established case law and addresses the specific needs of the mineral interest including potential surface issues.</p>
<p>The second takeaway is that no all lawyers are experienced in oil/gas/mineral law. It is critical that mineral owners seeking legal assistance regarding a proposed lease get the help of an attorney that deals in that portion of the law on a regular basis. Those that do will be familiar with current case law. An attorney that does not keep up with case law regarding decisions such as <em>BlueStone Natural Resources II, LLC v. Randle</em> are prone to making mistakes that can come back to bite the mineral lessor in the future.</p>
<p>IANAL and this is not intended as legal advice. :-) And this is <strong>TEXAS</strong> case law. Laws governing leasing of minerals differ between states as does the case law.</p>