pjc-oil-and-gas-2022-lib

D EFENSES

PJC 312.20

PJC 312.20 Question and Instruction on Statutory Defense to Withholding of Payments and Prejudgment Interest QUESTION ______ Was [ Don Davis/Polly Payor ]’s withholding of payment [ and/or ] prejudg ment interest excused? [ Don Davis/Polly Payor ] is excused if on [ date payment due ] there was— 1. a title dispute that would affect distribution of payment[ s ]; or 2. a reasonable doubt that [ Paul Payne/Perry Payee ]— a. sold or authorized sale of [ Paul Payne/Perry Payee ]’s share to [ purchaser ], or b. had clear title to the interest of the proceeds of production; or 3. a title opinion that places at issue title, identity, or whereabouts of [ Paul Payne/Perry Payee ], and [ Don Davis/Polly Payor ] made a reasonable request for curative information that has not been satisfied by [ Paul Payne/ Perry Payee ]. Answer “Yes” or “No.” Answer: _______________ COMMENT When to use. PJC 312.20 is appropriate for use in payment disputes under Texas Natural Resources Code sections 91.401–.408. If there is a dispute regarding whether payment was late, see PJC 303.5 on untimely payment of royalty under the Texas Nat ural Resources Code. Source of question and instruction. PJC 312.20 is derived from Tex. Nat. Res. Code §§91.401(1)–(2), 91.402(b), 91.403(b); Concord Oil Co. v. Pennzoil Explora tion & Production Co. , 966 S.W.2d 451, 461 (Tex. 1998); and Headington Oil Co., L.P. v. White , 287 S.W.3d 204, 209–10 (Tex. App.—Houston [14th Dist.] 2009, no pet.).

213