Oil Company Clear of Lease Payments in Texas Royalties Dispute

Texas mineral lessors lost their bid to collect royalties for gas used off their lease after the Fifth Circuit upheld dismissal of the challenge.

A federal district court’s decision was consistent with what the Texas Supreme Court said when answering certified questions, so the dismissal was affirmed, the US Court of Appeals for the Fifth Circuit said Tuesday.

The lessors said in their June 2022 brief that they entered into oil and gas leases with Hilcorp Energy Co. but that the company didn’t pay royalties on the gas it used off the leasehold premises. They argued the language of the ...