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Texas Panel Says Apache Lease Interest Can Be Reformed
Law360 (June 28, 2021, 7:44 PM EDT) -- The overriding royalty interests on Apache Corp. oil and gas leases can be reformed to comply with the state's rule against perpetuities, a Texas appellate panel said, but it tasked a trial court with hashing out the proper way to do so based on the intentions of the creator of the agreement.
In a unanimous opinion on Friday, the Seventh Court of Appeals in Amarillo agreed with the group of Texas Panhandle interest holders, led by Tommy Yowell, that it is possible to reform the overriding royalty interests so that they would vest at a concrete time and comply with a state rule against...