Considerations When Shelling Out Oil, Gas Royalties
March 19, 2012, 1:58 PM EDT
Law360, New York (March 19, 2012, 1:58 PM EDT) -- In December 2011, in Shell Oil Co. v. Ross, the Texas Supreme Court issued its latest decision on the statute of limitations and fraudulent concealment exception. In the case, Shell Oil Co. entered into a mineral lease with the Ross family in 1961. Under the lease, Shell agreed to pay the Rosses the standard 1/8 royalty realized from the sale of any gas produced from the land.
Shell did not consistently calculate the 1/8 interest based on the third-party gas sale price.