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The following article by James Holmes completes his review of Texas oil and gas law for royalty valuations, as it has evolved over 30 years and as it exists today. This Installment summarizes Holmes’s practical advice for royalty owners in light of seven “Pillars” of...
The following article by James Holmes continues his review of Texas oil and gas law for royalty valuations, as it has evolved over 30 years and as it exists today. It picks up where the first Installment, released on March 22, left off. In this Installment, he...
The following article by James Holmes is broken into three installments: first, James gives a background for the article and discusses the first four “pillars” for disputes over royalty valuations under Texas law, including the reasons for the deterioration of...
What are post-production deductions in gas royalties? Post-production deductions (“PPDs”) are charges against royalty payments that reflect a producer’s (lessee’s) efforts to transform newly produced gas into a marketable product and then to sell the product. Such...
“BBL” means blue barrel – which is 42 U.S. gallons. It is the oil and gas industry’s standard measure for production and sales of crude oil and oil products (e.g., refined gasoline and diesel, jet fuel, distillates). Various competing theories fight over the meaning...
The oil and gas industry loves acronyms more than any other industry, besides government bureaucracies. Three of the most common are the MCF, the MMBTU, and the BBL. These frequently appear on the upstream-revenue documents that Holmes PLLC must review for its...
Oil and gas monthly check details can be confusing and less than transparent. Often, only oil and gas accounting specialists, with knowledge of upstream accounting and marketing practices, can decipher royalty checks and monthly details. Nonetheless, understanding...
Rich gas (also called wet gas) contains valuable natural gas liquids, like ethane, propane, butane and pentane. Is a royalty owner receiving royalties on such liquids? In states like Texas that do not embrace the “marketable condition rule,” a royalty owner with a...
Managing your mineral interests can be time consuming and overwhelming. The key to make the most with your minerals is to manage your mineral assets like a business. There are many factors in minerals management such as knowing the extent of the family’s mineral...
A royalty clause in an oil and gas lease specifies the amount of royalty to be paid to the Lessor (the owner of the leased mineral rights) and sets forth terms and conditions of payment. A royalty is an agreed upon percentage of hydrocarbon production from the lease,...