CO2 and HOW LESSORS CAN OVERCOME LEASE LANGUAGE BARRIERS TO PROHIBIT POST-PRODUCTION DEDUCTIONS


#1

This is a must read, imo:

ENHANCING RECOVERY AND ROYALTIES: THE
FLAWED DECISION IN FRENCH V. OCCIDENTAL
PERMIAN LTD. AND HOW LESSORS CAN
OVERCOME LEASE LANGUAGE BARRIERS TO
PROHIBIT POST-PRODUCTION DEDUCTIONS

D. Let’s Start Drafting: Best Practices for Preventing Post-production
Deductions from Royalty

When viewed collectively, the four cases highlighted above provide
strong guidance for mineral owners seeking a lessor’s royalty free of
post-production expenses.318 The key goal for lessors is to modify the general
rule that a lessor’s royalty is subject to its proportionate share of
post-production expenses.319 As prior case law indicates, achieving this goal
requires careful drafting.320…