DO Smiles :) Division Order Analysts may sometimes feel
“I handed the baton to Division Orders back in October. They’re the only ones with the records and expertise to elucidate the interest calculations (and among the few with the patience and gluttony for punishment required for the dissection of 500 page title opinions). I won’t presume to speak for them, but it’s possible they might be actively revising and updating their records for the area.”
underappreciated by other departments. Lecia Hite with Laredo Petroleum shared the following excerpt from an email sent by their Lead Joint Interest Accountant to a Landman who wanted an explanation of how an interest is calculated in a horizontal allocation well:
Legal
Updates
These materials reflect only the personal views of the author and are not individualized legal advice. It is understood that each case is fact-specific, and that the appropriate solution in any case will vary. Therefore, these materials may or may not be relevant to any particular situation. Thus, the author and their law firm cannot be bound either philosophically or as representatives of their various present and future clients to the comments expressed in these materials. The presentation of these materials does not establish any form of attorney-client relationship with the author or their law firm. While every attempt was made to insure that these materials are accurate, errors or omissions may be contained therein, for which any liability is disclaimed. Texas Supreme Court Exempts Oil and Gas Conveyances from the Rule Against Perpetuities
The rule against perpetuities (“RAP”) and its archaic and frequently confusing interpretation of when an interest is “vested” has plagued generations of law students and property lawyers. RAP requires that “no interest is valid unless it must vest, if at all, within twenty- one years after the death of some life or lives in being at the time of conveyance.” BP Am. Pro. Co. v. Laddex, Ltd., 513 S.W.3d 476, 479 (Tex. 2017). Traditionally, RAP imposed the draconian consequence of voiding any
interest if any possible contingency of the grant violated RAP. Over time, courts have continued to relax the penalty imposed by RAP. Rosson v. Bennett, 294 S.W. 660, 662 (Tex. 1927) (holding that an oil and gas lease, which grants a lessee the right to explore and develop for a certain period of time and for so long thereafter as oil and gas is produced, creates a fee simple determinable estate that does not violate RAP).
9
G r o w t h T h r o u g h E d u c a t i o n - A p r i l / M a y / J u n e 2 0 1 8
Made with FlippingBook - Online magazine maker