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Texas Supreme Court Decision Impacts Royalty Payment Calculations: Postproduction Costs And Free-Use Clauses | Vinson & Elkins LLP

To embed, copy and paste the code into your website or blog: Aided by terms of art and a long history of precedent, parties entering an oil and gas lease can generally choose from common, time-tested clauses to serve their needs. Yet we know from practice that royalties and allocating postproduction costs are frequently litigated issues. A clause may be standard or common but that is no reason to let your guard down. Consider that even if individual royalty provisions are clear, their interaction in a lease may cause ambiguity. And what may appear time-tested can still raise novel issues. The parties in

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