Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Law
The Interaction Of The Division Order And The Lease Royalty Clause, Laura H. Burney
The Interaction Of The Division Order And The Lease Royalty Clause, Laura H. Burney
Faculty Articles
Because lease royalty clauses, which establish the obligation of the lessee to pay royalties to the lessor, generally fail to include the details necessary to calculate a lessor’s royalty, lessee or third party purchasers historically have implemented a division order. An additional document in the payment process, the division order protects against a lessee or third party purchaser’s liability for conversion or failure to account properly.
Recent court of appeals and Supreme Court of Texas opinions provide an analysis of the interaction of the lease royalty clause and the division order under Texas statutory and case law. The awkward wording …