Lessor-Lessee Relations After Shale's Honeymoon Period

Law360, New York (September 25, 2015, 10:44 AM EDT) -- Austin Brister

Jonathan Baughman Over the last five years, American shale production has more than tripled. Since last October, however, the oil and gas industry has trudged through a long and pronounced slump in crude oil prices in what has been termed the "Oil Bust of 2015." Oil prices dropped below $40 a barrel last month for the first time in over six years, and major relief from this slump may be distant as crude is expected to average $59 per barrel in 2016.

This low-price environment has been unfavorable for most royalty owners, as low oil prices generally lead to...

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