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Lessee's Refusal to Pay Royalties Reasonable Where Proof of Ownership Not Provided

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In Adams v. BP America Prod. Co., 2012 WL 1038035 *4-5 (W.D.La. March 27, 2012), the Court held that a lessee’s refusal to pay royalties was reasonable where the lessor failed to provide certified records of transfer of ownership as required by the lease and because Mineral Code article 138.1 required the lessor to supply name, address, and tax identification information.

Adams is consistent with a several other cases protecting lessees where they have timely responded to a notice of demand and where ownership was in question.

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