The following article by James Holmes of Holmes PLLC continues an analysis of landowners’ rights to regulate various activities on their land that are incidental to oil and gas exploration and production.  Given that the common law, traditional lease language, and statutes will not entitle landowners in most producing states to damages for surface uses or for post-production remediation, such landowners have very limited rights.  Thus, landowners often become very frustrated with producers, which can utilize their land with near impunity and can interrupt their own surface uses.  ..read more

The following article by James Holmes concludes his review of the marketable product rule (also called, the marketable condition rule). This installment demonstrates that the rule better protects royalty owners than the Texas approach, and the rule consistently demands royalty pricing on commercially usable products sold in vibrant markets, despite a variety of marketing circumstances.  Holmes has given many speeches to royalty owners and their representatives that start with this competition: “The Texas World vs. The Oklahoma World.” He contrasts the many differences between the Texas ap ..read more

The following article by James Holmes continues his review of the marketable product rule (also called, the marketable condition rule). He likes this installment the most – thus calling it the best installment – because the rule’s rationale not only justifies the rule’s continuation and expansion, but also demonstrates several failings of the Texas approach, which is diametrically opposed to the rule.  By carefully studying the rule’s rationale, Texas courts could strengthen the Texas approach and return Texas royalty jurisprudence to the nationally prominent and beneficially seminal posi ..read more

Read this article if any of the following applies: You liked James Holmes’s article on “Royalty Valuation Disputes in Texas Oil and Gas Leases” and want to read more about that. You are in the oil and gas industry and need to know about the most common type of litigation for your industry. You wish to know more about upstream and midstream revenue accounting. You like to study the evolution of state common law, and you are curious about how forces – e.g., judges, class actions, politics, businesspeople – can shape that law. The following article by James Holmes follows and compliments his popu ..read more

The following article by James Holmes completes his review of Texas oil and gas law for royalty valuations, as it has evolved over 30 years and as it exists today.  This Installment summarizes Holmes’s practical advice for royalty owners in light of seven “Pillars” of Texas law, appearing in the first Installment released March 22, 2021 and second Installment released March 29, 2021.  In this final Installment, Holmes explains how Texas royalty owners can best learn of royalty-valuation problems and can best protect their rights. He offers hope that Texas law my be tur ..read more

Most state and federal laws allow for a variety of measures for valuing businesses or business assets.  Therefore, reading through case law – or conferring with a lawyer who reads it for you – will reveal various valuation measures in a variety of contexts: • condemnation proceedings when a government must take private land or property for public usage, • divorcing spouses and the marital estate to be divided, • financial losses or injuries to businesses or businesspeople, and • supersedeas scenarios. The recurring valuation measures are (a) net worth under Generally Accepted Accounting P ..read more