Cost-Free Royalties – Where Valuation Begins and Post-Production Cost Deductions End

Authors: Celia Flowers & Melanie Reyes Texas jurisprudence has long held that the royalty “stick” of the mineral estate is free of production costs. Although the royalty interest is not subject to production costs, royalty is usually subject to post-production costs. Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118, 122 (Tex. 1996). Nevertheless, parties are…

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Flowers Davis PLLC Attorneys Melanie Reyes & Rob Knight Speak at the East Texas Association of Petroleum Landmen (ETAPL) Spring Seminar

TYLER, TX (April 30, 2017) ­­– Flowers Davis PLLC Attorneys Melanie Reyes and Rob Knight were presented to members of the East Texas Association of Petroleum Landmen (ETAPL) at their annual Spring Seminar. Reyes and Knight spoke on issues arising due to horizontal drilling, where case law is lagging behind field practices. Their lecture surveyed…

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