Texas High Court To Hear 'Anti-Washout' Lease Fight

Law360 (October 7, 2019, 8:54 PM EDT) -- The Texas Supreme Court has agreed to hear a test of the power of "anti-washout" clauses, which are intended to protect oil and gas ownership royalty interests from lapsing, in a Texas Panhandle lease fight involving Apache Corp.

The case could also test how overriding royalty interests are transferred to new leases in an issue of first impression. A group of overriding royalty owners led by Tommy Yowell told the court that the case is of "critical importance" to oil and gas ownership in Texas, and that a Seventh Court of Appeals ruling "threatens the validity of virtually every existing anti-washout...

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