Gas royalties - leading state and federal cases reviewed: Alice's Adventures in Royalty-Land

Journal Article · Tue Dec 31 23:00:00 EST 1985 · Public Land Resour. Law Dig.; (United States)

OSTI ID:5558508

Harris, Jr, A K

There has been constant litigation in the oil- and gas-producing states over the question of how the lessee fulfills has gas royalty obligation when the initial price under his gas purchase contract is less than the market price or market value for the gas when later produced. Case law prior to 1981 and making up the Vela rule held that market value in a gas lease means current market price or market value at the time of production and delivery, rather than when the sale contract was made. The lessee's problem with a long-term contract in a rising market led to a defection from the Vela rule. The author describes court decisions under the rule and their implications for the future.

• OSTI ID: 5558508
• Journal Information: Public Land Resour. Law Dig.; (United States), Journal Name: Public Land Resour. Law Dig.; (United States) Vol. 23:1; ISSN PRLDD
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
CASE LAW
CONTRACTS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INCOME
LAWS
LAWSUITS
LEASES
LEGAL ASPECTS
NATURAL GAS
PRICES
ROYALTIES
SALES
VALUES