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EP Energy to Pay $41 Million for Breach of Oil Lease Contracts

Jan. 26, 2022, 10:19 PM

EP Energy E&P Co. LP must pay landowner Storey Minerals Ltd. more than $41 million in bonuses for breaching a “most-favored nation” clause in a mineral lease contract, a Texas appeals court said Wednesday.

EP Energy and Storey entered three identical oil and gas leases containing an MFN clause in 2009. The clause ensured that Storey would receive the same treatment as other lessors entering into similar lease agreements with EP. If the new lease contained more favorable terms than the first lease, then it would apply to Storey.

Under these leases, known as the “A leases,” EP Energy paid ...

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