Gas royalty - Vela, Middleton, and Weatherford

Journal Article · Sat Jan 01 04:00:00 EST 1983 · Public Land Resour. Law Dig.; (United States)

OSTI ID:5535238

Harmon, F G

The evolution of gas royalties is evident in this review of oil and gas cases dating from 1926. The author describes the decisions and changes in the gas royalty clause over the years in order to determine the intent of the parties in setting the measure of the royalty payment on gas production under Texas law. The Foster, Vela, and Middleton cases were the major vehicles for the legal development. The author also examines subsequent cases involving the market value of price-regulated gas and court decisions on royalty determination in other jurisdictions. Producers need to take protective steps in anticipation of early deregulation of gas prices to make sure there is no exposure to claims of market value in excess of contract proceeds. Corrective measures include contract amendments or negotiations with both the gas purchaser and the royalty owners to secure a lease amendment.

• OSTI ID: 5535238
• Journal Information: Public Land Resour. Law Dig.; (United States), Journal Name: Public Land Resour. Law Dig.; (United States) Vol. 20:2; ISSN PRLDD
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
031000* -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
CASE LAW
CONTRACTS
ENERGY SOURCES
FEDERAL REGION VI
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INCOME
LAWS
LEASES
LEGAL ASPECTS
NATURAL GAS
NORTH AMERICA
ROYALTIES
TEXAS
USA