Oil & Gas Litigation Analysis

Reese Marketos Energy Law

Oil & Gas Litigation · Case Analysis
Joel Reese, Attorney

Home › Cases › YMC Royalty v. WPX Energy Permian, LLC
Royalty Disputes

YMC Royalty v. WPX Energy Permian, LLC

U.S. District Court, Western District of Texas 1:24-cv-00266 active

YMC Royalty sought $1,023,258 in damages and lease termination against WPX Energy Permian over a 2016 Loving County lease, alleging underpayment through improper post-production deductions on NGLs, flared gas, and plant fuel. The Western District of Texas granted partial summary judgment for WPX, holding the lease's royalty language entitled YMC only to gross proceeds at the point of sale to third-party purchasers, limiting the cost-free obligation to that delivery point rather than downstream.

Analysis

Western District of Texas Limits Gross Proceeds Royalty Obligation to Third-Party Sale Point in Delaware Basin Dispute

YMC Royalty sought $1,023,258 in damages and lease termination against WPX Energy Permian over a 2016 Loving County lease, alleging underpayment through improper post-production deductions on NGLs, flared gas, and plant fuel. The Western District of Texas granted partial summary judgment for WPX, holding the lease's royalty language entitled YMC only to gross proceeds at the point of sale to third-party purchasers, limiting the cost-free obligation to that delivery point rather than downstream.

Joel Reese  |  Oct 12, 2026
Royalty Interest Post-Production Costs Gross Proceeds Permian Basin NGL Deductions