Bracewell partner Jeffrey Oldham arguing before the Texas Supreme Court. Credit: SCOTx video archives. U.S. Fifth Circuit Punts Oil and Gas Royalty Spat to Texas Supreme Court
Oil and gas producers are at odds with land and mineral owners over a recent Texas Supreme Court decision, and are disputing whether producers can continue to deduct post-production costs from certain uses of extracted natural gas.
March 20, 2024 at 04:26 PM
4 minute read
Contractual Disputes
What You Need to Know
- The Texas Supreme Court heard argument on a federal certified question over what royalty rights land and mineral owners have.
- At issue is whether energy producers can still deduct post-production costs on off-lease uses of gas.
- The issue is fallout from how mineral owners have interpreted a 2021 Texas Supreme Court decision.
Texas Supreme Court justices heard argument on an oil and gas lease issue that stymied the U.S. Court of Appeals for the Fifth Circuit and has Texas mineral owners and energy producers butting heads.
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