context: We conclude that they were not. Instead, we find that, as in Hyder, the assignments at issue specifically provide for the allocation of post-production costs based on the manner in which the royalty is taken--in-kind or in cash. In particular, the plain language of the assignments unambiguously provides that, when the royalty is taken in cash and the minerals are sold at an arm's-length sale, as here, the royalty is based on the "amount realized" by Burlington from the sale, and is therefore free of post-production costs.
citation_a.signal: see also
citation_a.identifier: 247 S.W.3d 690, 699
citation_a.parenthetical: " 'Proceeds' or 'amount realized' clauses require measurement of the royalty based on the amount the lessee in fact receives under its sales contract for the gas."
citation_a.sentence: See Hyder, 483 S.W.3d at 873 (noting, with respect to the 25% gas royalty owed to the Hyders, that “the price-received basis for payment in the lease is sufficient in itself to excuse the lessors from bearing post[-]production costs,” and that such a clause is often referred to as a “proceeds lease”); see also Bowden v. Phillips Petroleum Co., 247 S.W.3d 690, 699 (Tex. 2008) (“ ‘Proceeds’ or ‘amount realized’ clauses require measurement of the royalty based on the amount the lessee in fact receives under its sales contract for the gas.”); Occidental Permian Ltd. v. Helen Jones Found., 333 S.W.3d 392, 399 (Tex. App.—Amarillo 2011, pet. denied) (“ ‘Amount realized’ means the proceeds received from the sale of gas or oil.”).
citation_b.signal: see
citation_b.identifier: 483 S.W.3d 873, 873
citation_b.parenthetical: noting, with respect to the 25% gas royalty owed to the Hyders, that "the price-received basis for payment in the lease is sufficient in itself to excuse the lessors from bearing post[-]production costs," and that such a clause is often referred to as a "proceeds lease"
citation_b.sentence: See Hyder, 483 S.W.3d at 873 (noting, with respect to the 25% gas royalty owed to the Hyders, that “the price-received basis for payment in the lease is sufficient in itself to excuse the lessors from bearing post[-]production costs,” and that such a clause is often referred to as a “proceeds lease”); see also Bowden v. Phillips Petroleum Co., 247 S.W.3d 690, 699 (Tex. 2008) (“ ‘Proceeds’ or ‘amount realized’ clauses require measurement of the royalty based on the amount the lessee in fact receives under its sales contract for the gas.”); Occidental Permian Ltd. v. Helen Jones Found., 333 S.W.3d 392, 399 (Tex. App.—Amarillo 2011, pet. denied) (“ ‘Amount realized’ means the proceeds received from the sale of gas or oil.”).