Royalty Disputes

Gringita, Ltd. v. Ineos USA Oil and Gas, LLC

A Texas district court granted partial summary judgment to Gringita, Ltd. in a royalty dispute over 1,015+ acres in Dimmit County, holding that 'free of cost' language combined with add-back provisions in Sections 3.C and 3.E requires Ineos USA Oil and Gas to add back all post-production cost deductions before calculating the lessor's 25% royalty share. The ruling creates what the court characterized as a 'proceeds plus' model—a structure where the royalty owner potentially receives more per unit than the lessee's working interest share.