The Texas Supreme Court’s decision in ConocoPhillips Co. v. Koopmann clarifies that Texas Natural Resources Code § 91.402(b) does not bar breach of contract claims arising from withheld royalty payments, while leaving non-contract common law claims potentially precluded. The court emphasized that statutory abrogation of common law claims requires clear language, which § 91.402 lacks. This ruling places payors in a precarious position, as withholding payments may expose them to double liability and common law claims, prompting calls for legislative clarification and strategic adjustments by payors to mitigate risks.
Wehmeyer et al. (Wed,) studied this question.