The McGinnis Lochridge Oil and Gas Practice Group publishes the Producer’s Edge with the purpose of keeping our valued clients and contacts in the oil and gas industry updated and informed regarding interesting Texas case law...more
The Tyler Court of Appeals reversed a $2.5 million judgment against pipeline successors (Coffeyville Resources Crude Transportation, LLC v. ExxonMobil Pipeline Co., No. 12-23-00276-CV, 2025 WL 356222 [Tex. App.—Tyler Jan. 31,...more
7/25/2025
/ Acquisition Agreements ,
Breach of Contract ,
Business Litigation ,
Chain of Title ,
Consent ,
Consent to Assignment ,
Contract Disputes ,
Crude Oil ,
Damages ,
Exxon Mobil ,
Infrastructure ,
Oil & Gas ,
Pipelines ,
Reversal ,
Texas ,
Void ab initio
The El Paso Court of Appeals recently published an opinion that provides what might be characterized as 26-step step system for analyzing a deed that (perhaps inadvertently) highlights a growing irony in Texas jurisprudence....more
In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more
5/29/2025
/ Appeals ,
Breach of Contract ,
Commercial Leases ,
Contract Disputes ,
Contract Interpretation ,
Dispute Resolution ,
Mineral Leases ,
Oil & Gas ,
Royalties ,
Texas ,
TX Supreme Court
In this lease termination case (Pruett v. River Land Holdings, LLC, No. 03-22-00478-CV, 2024 WL 1745652, at *1 [Tex. App.—Austin Apr. 24, 2024, no pet.]), the Austin Court of Appeals was tasked with examining a cessation of...more
5/22/2025
/ Appeals ,
Commercial Leases ,
Contract Disputes ,
Contract Terms ,
Estoppel ,
Lease Termination ,
Leases ,
Mineral Leases ,
Oil & Gas ,
Summary Judgment ,
Texas
In Myers-Woodward, LLC v. Underground Services Markham, LLC, No. 22-0878, 2025 WL 4356581 (Tex. May 16, 2025), the Texas Supreme Court resolved two significant issues affecting mineral owners and surface owners: (1) who owns...more
5/19/2025
/ Contract Disputes ,
Contract Interpretation ,
Mineral Exploration ,
Mineral Extraction ,
Minerals ,
Natural Resources ,
Net Profits ,
Oil & Gas ,
Popular ,
Property Ownership ,
Real Estate Transactions ,
Royalties ,
SCOTUS ,
Surface Owner ,
Texas ,
TX Supreme Court
A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more
5/8/2025
/ Actual Costs ,
Appeals ,
Business Litigation ,
Contract Disputes ,
Contract Interpretation ,
Dispute Resolution ,
Gas Royalties ,
Mineral Leases ,
Oil & Gas ,
Popular ,
Postproduction Costs ,
Royalties ,
Summary Judgment ,
Texas ,
Well Drilling
In this recent case, the Texas Supreme Court resolved whether ratification of a lease or signing of a stipulation agreement could transform a fixed non-participating royalty interest (NPRI) into a floating NPRI....more
5/5/2025
/ ConocoPhillips ,
Contract Disputes ,
Contract Interpretation ,
Contract Modification ,
Dispute Resolution ,
Gas Royalties ,
Leases ,
Mineral Leases ,
Mineral Rights ,
Oil & Gas ,
Property Owners ,
Ratification ,
Real Estate Transactions ,
Royalties ,
Texas ,
TX Supreme Court
In a watershed ruling, the El Paso Court of Appeals extends "waste" liability under the Nat. Res. Code to commercial disposal well operator—potentially increasing exposure for this critical wastewater industry—while...more
4/30/2025
/ Appeals ,
Disposal Wells ,
Environmental Litigation ,
Environmental Policies ,
Liability ,
Natural Resources ,
Negligence ,
Oil & Gas ,
Oil Wells ,
Permits ,
Property Owners ,
Risk Management ,
Statutory Interpretation ,
Texas ,
Waste Disposal ,
Wastewater
Winter Storm Uri sent shockwaves through Texas, freezing gas supplies at a time of critical need and plunging the state into widespread power outages. In the aftermath, the courts have been flooded with force majeure claims,...more
3/24/2025
/ Appeals ,
Breach of Contract ,
Contract Disputes ,
Contract Terms ,
Electricity ,
Force Majeure Clause ,
Infrastructure ,
Liability ,
Litigation Strategies ,
NAESB ,
Natural Gas ,
Oil & Gas ,
Risk Management ,
Severe Weather ,
Summary Judgment ,
Texas