Texas justices on Wednesday weighed whether operators of oil and gas leases can withhold payments without interest under the safe harbor provision of the Texas Natural Resources Code.
An attorney representing Freeport-McMoRan Oil & Gas LLC told the Texas Supreme Court that if they’re punished for pausing payments for a legitimate reason, it will impose unintended risk on payors who seek safe harbor in the face of legitimate title disputes.
“The safe harbor statute could not be more clear, payors are authorized to suspend payment of all oil and gas production proceeds without liability for interest or attorneys fees,” Jim …
