pjc-oil-and-gas-2022-lib

PJC 303.23

L ESSOR -L ESSEE I SSUES

PJC 303.23 Question on Failure to Tender Shut-In QUESTION ______ Did Larry Lessee fail to pay or tender a shut-in royalty payment as provided in the lease? The lease provides [ insert express lease provision ]. Answer “Yes” or “No.” Answer: _______________ COMMENT When to use. PJC 303.23 should be used when the lessee is relying on an express shut-in royalty clause to avoid lease termination. This question should be modified to reflect the language in the clause at issue and will require appropriate instructions defining the applicable provisions of the lease. Source of question. PJC 303.23 is derived from BP America Production Co. v. Red Deer Resources, LLC , 526 S.W.3d 389 (Tex. 2017); Skelly Oil Co. v. Harris , 352 S.W.2d 950, 953 (Tex. 1962); Gulf Oil Corp. v. Reid , 337 S.W.2d 267, 271 (Tex. 1960); Blackmon v. XTO Energy, Inc. , 276 S.W.3d 600, 605–07 (Tex. App.—Waco 2008, no pet.); Hydrocarbon Management, Inc. v. Tracker Exploration, Inc. , 861 S.W.2d 427, 431, 432 (Tex. App.—Amarillo 1993, no writ); Mayers v. Sanchez O’Brien Minerals Corp. , 670 S.W.2d 704, 709 (Tex. App.—SanAntonio 1984, writ refused n.r.e.); and Duke v. Sun Oil Co. , 320 F.2d 853, 858–59 (5th Cir. 1963).

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