Production in Paying Quantities (PPQ) & Cessation of Production Disputes
Yukon Trading Company, LLC v. Mewbourne Oil Company et al., District Court of Dewey County, Oklahoma
Representing Mewbourne in a top lease dispute in Dewey County, Oklahoma. After discovering that Mewbourne planned to drill valuable horizontal wells on certain property, Yukon Trading Company obtained top leases from several lessors of the property and claimed that Mewbourne’s leases terminated due to a cessation of production and that the top leases were in effect. After the parties moved for summary judgment, the Court ruled in favor of Mewbourne. Currently on appeal before the Oklahoma Court of Appeals.
Type of Case: Lease Ownership Disputes, Top Lease Disputes, PPQ & Cessation
Viper Energy Partners LLC v. Permian Delaware Enterprises Holdings, LLC
Represented a subsidiary of ConocoPhillips in a lease termination lawsuit filed in Loving County, Texas involving valuable acreage in the Delaware Basin. Plaintiff lessor alleged that some or all of the lease had terminated due to a lack of production in paying quantities. Filed a motion for summary judgment arguing that the lease did not require production in paying quantities. Settled case on confidential terms prior to summary judgment.
Type of Case: PPQ & Cessation, Lease Ownership Disputes
Confidential Litigation in the 112th Judicial District Court, Upton County, Texas
Representing a confidential Defendant in an ongoing Permian Basin lease termination and royalty dispute in Upton County, Texas. Plaintiffs allege cessation of production, lack of production in paying quantities, and underpayment of royalties, and seek to quiet title to mineral interests. Defending claims for trespass to try title and breach of contract involving legacy lease provisions and royalty obligations. Case is ongoing.
Type of Case: PPQ & Cessation, Royalty Litigation