Costs deductible by the lessee in accounting to royalty owners for production of oil or gas

Journal Article · Fri Feb 28 23:00:00 EST 1986 · La. Law Rev.; (United States)

OSTI ID:5416293

Parker, Jr, F R

The terms of article 80 of the Louisiana Mineral Code indicate that a royalty owner, in the absence of any express provision to the contrary in the lease agreement, is exempt from any liability for drilling and production costs. While the royalty due is determined by reference to the intent of the parties as expressed in the lease contract, the terms of the document often do not clearly define which costs the lessee bears alone and which he shares with the royalty owner. The Louisiana courts have construed royalties to be measured and payable at the well, which means the lessee pays all the production costs and shares subsequent costs with the royalty owner.

• OSTI ID: 5416293
• Journal Information: La. Law Rev.; (United States), Journal Name: La. Law Rev.; (United States) Vol. 46:4; ISSN LLRED
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
03 NATURAL GAS
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
290400 -- Energy Planning & Policy-- Energy Resources
294000 -- Energy Planning & Policy-- Fossil Fuels
ACCOUNTING
CASE LAW
CONTRACTS
COST
ENERGY SOURCE DEVELOPMENT
FEDERAL REGION VI
INCOME
INDUSTRY
LAWS
LEASES
LEGAL ASPECTS
LIABILITIES
LOUISIANA
MINERAL RIGHTS
NATURAL GAS INDUSTRY
NORTH AMERICA
PETROLEUM INDUSTRY
ROYALTIES
USA