Tyler Court Affirms Jury Verdict on Natural Resources Code Disclosure Requirements in East Texas Royalty Dispute

The Tyler Court of Appeals affirmed a take-nothing judgment against royalty owners Lud R. Davis III and Charlotte Davis, who alleged that Aethon Energy violated their lease terms by improperly accounting for post-production transportation fees charged by affiliate Scona LLC. The Davises challenged AUBR's practice of showing transportation charges as '$0.00' on 2020 check stubs while allegedly embedding the actual fees in reduced sales prices, but the court found sufficient evidence to support the judgment in AUBR's favor.