Topic
5 posts
A top lease is a new lease signed while an existing lease is still in force, designed to take effect when the existing lease expires. They are common in active leasing markets, frequently misunderstood, and contain a perpetuities trap that can void the lease entirely if the language is wrong.
Read more →A 25% royalty on a lease that allows post-production cost deductions can pay less than a 20% royalty on a true cost-free lease. Royalty fraction gets the headlines, but post-production cost language is often where 10-20% of your check actually disappears.
Read more →The "producing in paying quantities" requirement is the most commonly litigated phrase in Texas oil and gas law. This guide explains the Clifton v. Koontz test, what happens when a marginal well falls short, and what mineral owners can do if a lease should have terminated.
Read more →A Pugh clause prevents an operator from holding more acreage or more depths than they are actually developing. This guide explains the two types — horizontal (area) and vertical (depth) — and why they matter both at lease signing and years later.
Read more →A poorly drafted mineral reservation can cost the grantor their intended interest. This guide explains the critical difference between reservations and exceptions, term reservations, and the Duhig problem that catches grantors and title examiners off guard.
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