LOGA Industry Report - Winter 2009 - (Page 40) present any evidence that the parties intended to opt out of the Louisiana prescription regime, and thus found in favor of the plaintiffs. In this phase of the litigation, the Fifth Circuit examined the district court’s findings. The court found that the plaintiffs presented evidence supporting that the parties had intended Louisiana law to apply, including the testimony of a party to the settlement negotiations that “it was his impression from his attorneys that the plaintiffs’ intent was to have Louisiana law apply to the royalty interests;” evidence that the lawyers representing the plaintiffs were Louisiana oil and gas law experts; and evidence that the parties used Louisiana royalty deed forms. In examining the evidence by the federal government in support of its contention that Louisiana law was not intended to apply to the agreement, the Fifth Circuit found the evidence to fall short. The witness for the federal government merely stated that, in the course of negotiation discussions, neither the Louisiana Mineral Code nor whether it would apply to the transaction was mentioned. The federal government conceded that the parties did not anticipate the choice-of-law dispute that arose in the litigation and did not adopt express terms to avoid it. The Fifth Circuit therefore affirmed the district court’s decision in favor of the plaintiffs. This case illustrates that in conducting negotiations with the federal government, it is important to anticipate the law that will apply to the rights created. It also serves as a reminder that not every mineral right created in favor of the government will be an imprescriptible right, and the importance of closely examining the details of ● mineral rights created in favor of the federal government. Welcome New Members UBS Leeds Eustis Houston, TX Breazeale Sachse & Wilson LLP John King Baton Rouge, LA Lowe Engineers Christie Williams Atlanta, GA Empressa Energy, LP Mr. Jeff Elkin Houston, TX Grigsby Petroleum Inc. Jack W. Grigsby Shreveport, LA Lott Energy Partners David Smith Houston, TX Plantation Operating, LLC Bob Stancil Houston, TX Plantation Operating, LLC Charles Kana Houston, TX Plantation Operating, LLC Don Dotson Houston, TX Approach Environmental, LLC Mark Moore Shreveport, LA Sklar Exploration Co., LLC David Barlow Shreveport, LA Sylvan Energy, LLC Robert Keir Pittsburgh, PA Beusa Energy, Inc. Jeff Morris The Woodlands, TX Beusa Energy, Inc. Linda McGowen The Woodlands, TX Beusa Energy, Inc. Juan Martin The Woodlands, TX Beusa Energy, Inc. Jerry Lloyd Longview, TX Beusa Energy, Inc. Dwight Flowers The Woodlands, TX Fair Law Office James Fair, Jr. Natchitoches, LA Industry & Oilfield Services, Inc (IOS) Earl Landry, Jr. Lafayette, LA LA Risk Specialists, Inc. Jack Duke New Orleans, LA Radius Petroleum, LLC Salar Nabavian Dallas, TX Service Steel & Pipe, Inc. Larry Norred Shreveport, LA Shreve Land Constructors, LLC Carl Bantle Shreveport, LA United Oil & Gas Company Jerome E. Peuler, Jr. La Plata, MD Tellus Operating Group, LLC, explores, develops and operates oil and gas producing properties in Louisiana and other areas in the Continental U.S. with primary emphasis in the Gulf Coast region. We are committed to reducing America’s dependence on foreign petroleum supplies. We heartily support LOGA in its efforts on behalf of our industry. OPERATING GROUP, LLC 602 Crescent Place, Suite 100 Ridgeland, MS 39157 OFFICE: 601-898-7444 FAX: 601-898-7445 Sklar Exploration Co., LLC Cory J. Ezelle Shreveport, LA Sklar Exploration Co., LLC Howard F. Sklar Shreveport, LA 391292_Tellus.indd 1 INDUSTRY REPORT | WINTER 2009 | LOGA 40 7/16/08 1:33:31 PM http://www.tellusoperating.com
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