Landnews

Gas Royalty Provisions:

  • 1.  Gas Royalty Provisions:

    Posted 09-10-2019 12:15
    All,

    Does anyone have case law or articles to support "residue gas" as being a processed or manufactured or extracted product, per limitation of 2/3 processing cost deductions taken against?

    This argument does not consider transportation or gathering costs. 

    Thanks,




  • 2.  RE: Gas Royalty Provisions:

    Posted 09-12-2019 08:51
    I haven't reviewed case law on residue gas, but I could easily see it falling under a processed or extracted product clause because that is exactly what it is, all dependent on the lease language of course. What State is this in?

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    Marcus Brown RPL
    Brown Land & Title, LLC
    Corpus Christi TX
    (361) 728-5453
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  • 3.  RE: Gas Royalty Provisions:

    Posted 09-12-2019 08:51
    I could easily see residue gas being defined as processed, manufactured, or extracted gas, depending on how those termed are defined. I think that without a definition, it is certainly a processed or manufactured gas. What State is this in?

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    Marcus Brown, RPL CPLTA CNSA
    Independent Field Landman
    Brown Land Services, LLC
    361-728-5453
    Marcus_r_brown@hotmail.com
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  • 4.  RE: Gas Royalty Provisions:

    Posted 09-12-2019 16:40
    Thanks, Marcus.

    This is occurring in Utah.

    I need some language/ case law that supports residue gas as a processed product. Otherwise the deductions on gas are being taken all the way back to the wellhead, instead of limited to processing only.

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    Wesley Adams RPL
    State of Utah School and Institutional Trust Lands Administration
    Salt Lake City UT
    (720) 883-8920
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  • 5.  RE: Gas Royalty Provisions:

    Posted 09-16-2019 16:36

    FORTUNE PRODUCTION CO., Tucker Drilling Co., Inc., Curtis Hankamer Corp., and John L. Cox, Petitioners, v. CONOCO, INC., Respondent.

    No. 99-0490.

    Supreme Court of Texas. 52 S.W.3d 671 (2000)

     

    Read this case, it's interesting and may give some helpful insight as to how residue gas was treated/marketed in Texas.

    Menecca Gibbs, CPLTA
    Grant-Simmons Land Consulting



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    Menecca Gibbs
    Landman
    Grant-Simmons Land, LLC
    Guthrie OK
    (405) 821-1229
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  • 6.  RE: Gas Royalty Provisions:

    Posted 10-01-2019 10:22
    Thank you, Menecca.

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    Wesley Adams RPL
    State of Utah School and Institutional Trust Lands Administration
    Salt Lake City UT
    (720) 883-8920
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  • 7.  RE: Gas Royalty Provisions:

    Posted 09-16-2019 16:38

    Try Anderson Living Trust v. WPX Energy Production, LLC (306 F.R.D 312)

    30 C.F.R. @1206.171 defines residue gas as post processing, pipeline quality natural gas



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    Jay Green RPL
    Independent
    Midland TX
    (432) 349-1305
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  • 8.  RE: Gas Royalty Provisions:

    Posted 09-18-2019 10:21
    Thanks, Jay. 

    The CFR is a nice rebuttal in addition to Williams and Meyers defined terms.