Louisiana Oil and Gas Legislation Update: HB123

July 28, 2020 — The 2020 Louisiana Legislative Regular Session enacted a change to the method of allocating mineral proceeds for trusts.  By Louisiana House Bill 123 which was enacted on June 4, 2020, and will take effect on January 1, 2021, the Louisiana Legislature revised La. R.S. §9:2152 to resemble Texas Property Code §116.174 and remove the application of the “open mines doctrine” in trusts. Prior Louisiana law allocated royalty payments to be apportioned between the principal and income of a trust at the rate of twenty-seven and one-half percent (27.5%) of the gross proceeds to principal and the remaining seventy-two…
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Wyoming Oil and Gas Legislation Update: HB14

June 17, 2020 — Wyoming’s oil and gas regulations were recently amended in an effort to attract energy development in the state. Among the new laws is House Bill 14, which changes the way operators force pool nonconsenting owners. The Wyoming Oil and Gas Conservation Commission has authority to issue pooling orders to pool interests located within a drilling and spacing unit (“DSU”). WYO. STAT. § 30-5-109 currently provides that when two or more separately owned tracts of land are embraced in a DSU, and in the absence of voluntary pooling, any interested party may enter an order pooling all…
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Wyoming Supreme Court Finds That Commission Acted Arbitrarily and Capriciously in Denying a Drilling Unit

June 15, 2020 — In Exaro Energy III, LLC v. Wyo. Oil & Gas Conservation Comm'n, 455 P.3d 1243 (Wyo. 2020), the Supreme Court of Wyoming reviewed and reversed a decision rendered by the Wyoming Oil and Gas Conservation Commission (the “Commission”) regarding the approval of adjacent drilling and spacing units (“DSUs”) in the Jonah Field.  The Commission is given the broad authority to establish DSUs, and must follow appropriate agency standards when deciding whether or not to allow an operator to establish a DSU.  In this decision, the Supreme Court of Wyoming decided that the Commission’s denial of an…
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