the adjacent lands, as to the zones or strata producing in such adjacent well.”
offset provision. The Court’s holding is limited to “the circumstances at hand, which involve unconventional production in tight shale formations.”
The Court held that when this clause was triggered by a well on a neighboring tract, the well Murphy drilled 1,800 feet from the lease line and 2,100 feet from the trigger well satisfied Murphy’s obligation under the
https://cases.justia.com/texas/supreme- court/2018-16-0505.pdf?ts=1527862061
U.S. Shale Energy II, LLC v. Laborde Properties, L.P.
declared that the deed reserved a floating one-half royalty interest. The court of appeals reversed, concluding that the royalty interest was fixed. The Supreme Court reversed in light of the language and structure of the reservation at issue, holding that the deed unambiguously reserved a floating one-half interest in the royalty in all oil, gas, or other minerals produced from the conveyed property.
Justia Opinion Summary The Supreme Court reversed the judgment of the court of appeals holding that the royalty interest reserved to the grantor in a 1951 deed was fixed - or set at a specific percentage of production - rather than floating - dependent on the royalty amount in the applicable oil and gas lease.
https://cases.justia.com/texas/supreme- court/2018-17-0111.pdf?ts=1530281289
Plaintiffs sought a declaratory judgment that the deed reserved a floating one-half royalty interest. The trial court
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G r o w t h T h r o u g h E d u c a t i o n - J u l y / A u g u s t / S e p t e m b e r 2 0 1 8
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