Howard, et al. v. Matterhorn Energy, LLC, et al. [6th Dist.] May 4, 2021 considered the Texas Citizens Participation Act as amended, effective on September 1, 2019....more
“Ratification is not a game of ‘gotcha’”, said the Texas Supreme Court in BPX Operating Co. v. Strickhausen. The Court, in a 5-4 opinion, addressed the standard for an oil and gas lessor’s implied ratification of an...more
In Apache Corp. v. Hill, et al., lessors prevailed in a lease construction dispute because of the court’s unsurprising conclusion that a typewritten addendum to oil and gas leases superseded conflicting provisions in the...more
Apache Corporation v. Castex Offshore Inc. et al, answers the question, What constitutes willful misconduct in oil field operations? This was a breach of contract suit involving operator Apache and non-operator Castex....more
In Evans Resources, L.P., et al. v. Diamondback E&P, LLC, two agreements left the terms “constructed” and “utilized” undefined. If the terms had been defined would the outcome have been different? Maybe. Should parties define...more
7/21/2020
/ Breach of Contract ,
Condition Precedent ,
Contract Disputes ,
Contract Terms ,
Damages ,
Failure To Pay ,
Horizontal Wells ,
Judicial Foreclosure Process ,
Mineral Leases ,
Oil & Gas ,
Oil Wells ,
Surface Owner
Many oil and gas contracts – leases and JOAs for example – have force majeure clauses. The purpose is to allow contracting parties to suspend or terminate performance when certain circumstances arise that are beyond their...more
3/17/2020
/ Breach of Contract ,
Business Interruption ,
China ,
ConocoPhillips ,
Contract Drafting ,
Contract Terms ,
Coronavirus/COVID-19 ,
Delay Claims ,
Emergency Management Plans ,
Force Majeure Clause ,
Foreign Commerce ,
Infectious Diseases ,
Infrastructure ,
Liability ,
Oil & Gas ,
Performance Standards ,
Public Health ,
Risk Management ,
Well Drilling
In Chalker Energy Partners III LLC v. LeNorman Operating LLC, the Texas Supreme Court reaffirmed its belief in the sanctity of the written contract and the freedom of parties to negotiate and agree to contracts as they...more
3/10/2020
/ Appeals ,
Breach of Contract ,
Business Disputes ,
Confidentiality Agreements ,
Contract Disputes ,
Contract Negotiations ,
Contract Terms ,
Counterclaims ,
Energy Projects ,
Oil & Gas ,
Property Owners ,
Reversal ,
TX Supreme Court
Under Louisiana law, does the operator’s bad faith preclude recovery for the non-operator’s breach of a joint operating agreement if the operator caused the non-operator to breach the JOA but did not itself breach?...more
10/31/2019
/ Ambiguous ,
Bad Faith ,
Breach of Contract ,
Contract Disputes ,
Contract Interpretation ,
Contract Terms ,
Deepwater Horizon ,
Diversity Jurisdiction ,
Good Faith ,
Joint Operating Agreement ,
Offshore Drilling ,
Oil & Gas ,
Operating Agreements
In Barrow-Shaver Resources Company v. Carrizo Oil & Gas, Inc the Supreme Court of Texas has held again, here in a consent-to-assign dispute, that a contract means what the words say, even if in negotiations a landman said...more
As mentioned last week, the 86th Legislature amended the Texas Citizens Participation Act, Texas’ Anti-SLAPP law and defendants’ go-to weapon of destruction in a diverse range of cases....more
Welcome to today’s grab-bag of unrelated topics.
The climate avengers are clever in the way they demonize the industry. They give zero credit for technological advancement. Truth is, the industry’s use of technology is...more
The latest Fifth Circuit opinion in Seeligson v. Devon Energy Production, L.P. is the latest round in a class action that has been developing since 2014....more
3/19/2019
/ Abuse of Discretion ,
Breach of Contract ,
Class Action ,
Class Certification ,
Commonality ,
Downstream Agreements ,
FRCP 23 ,
Gas Royalties ,
Implied Contract ,
Marketing Perspectives ,
Mineral Extraction ,
Oil & Gas ,
Predominance Requirement
It’s a tale as old as the oilfield: A non-operator doesn’t pay joint interest billings, operator sues, non-payer claims the expenses were unwarranted and the operator was negligent—no, grossly negligent—for incurring them in...more
Harrison v. Rosetta Resources Operating LP presents a wacky? time-wasting? clever? unsuccessful attempt to expand reinvent the Texas accomodation doctrine....more
8/28/2018
/ Breach of Contract ,
Damages ,
Energy Sector ,
Gross Negligence ,
Mineral Exploration ,
Mineral Leases ,
Mineral Rights ,
Natural Resources ,
Negligence ,
Oil & Gas ,
Permanent Injunctions ,
State and Local Government ,
Trespass
Like breaking into CIA headquarters, sneaking into the Vatican, or hanging off the side of the Burj Khalifa, sometimes getting the deal done seems impossible. The key to any successful mission is planning for disastrous...more
8/8/2018
/ Acquisitions ,
Article III ,
Asset Purchase Agreements ,
Breach of Contract ,
Breach of Duty ,
Contract Terms ,
Energy Sector ,
Fiduciary Duty ,
Partnerships ,
Profits Interests ,
Standing
Louisiana practitioners and their clients tend to know this particular point of Louisiana law, but it could surprise out-of-staters (known in their native habitat as “Texans”), so it’s worth a reminder...more
7/17/2018
/ Breach of Contract ,
Calculation of Damages ,
Contract Disputes ,
Contract Terms ,
Damages ,
Energy Sector ,
Gas Royalties ,
Liability ,
Mineral Exploration ,
Mineral Leases ,
Negligence ,
Oil & Gas ,
Statutory Requirements
Defendants accused of stealing trade secrets often claim that publicly available information can’t constitute a trade secret. Sometimes yes, but mineral ownership that can be determined from the public record only after...more
It is often a worthy strategy for the lessee to be aggressive with counterclaims against the lessor. Lessees should think twice about that strategy if it means complaining about the lessor’s public statements. In Lona Hills...more
Recall the Battle of the Bastards: The heroic Lady Sansa and the duplicitous Lord Baelish gallop over the hill to save the foolish Jon Snow from the heinous Ramsey Bolton. In similar fashion, but without the malnourished...more
4/9/2018
/ Ambiguous ,
Breach of Contract ,
ConocoPhillips ,
Contract Interpretation ,
Contract Terms ,
Energy Sector ,
Mineral Leases ,
Mineral Rights ,
Oil & Gas ,
Rule Against Perpetuities ,
TX Supreme Court
We are reminded in Claybar v. Samson Exploration that a court will (if it’s doing its job) enforce an agreement according to what it actually says, not by that which one party or the other would have liked it to say or...more
You are selling properties. The buyer thinks you own the deep rights but you know your long-time partner owns them. You attend the closing. You don’t tell the buyer that he’s got the ownership wrong. You are protected by a...more
Forest Oil Corporation v. El Rucio Land and Cattle Inc. et al deserves your attention for four reasons:
You won’t see another one involving damage to a rhinoceros pen...more
5/9/2017
/ Arbitration ,
Arbitration Awards ,
Breach of Contract ,
Common Law Claims ,
Contaminated Properties ,
Contract Terms ,
Environmental Remediation Costs ,
Environmental Violations ,
Hazardous Substances ,
Jurisdiction ,
Oil & Gas
Today we venture into Oklahoma, to be instructed on the Supreme Court’s treatment of the Rule Against Perpetuities. First, the Rule: No property interest is good unless it must vest, if all, not later than 21 years after...more
North Shore Energy v. Harkins interpreted an Option Agreement between landowners and a producer over a 400 acre tract. In football they would say the Texas Supreme Court pancaked the plaintiff. In the law, some would call it...more
11/17/2016
/ Ambiguous ,
Appeals ,
Breach of Contract ,
Contract Interpretation ,
Contract Terms ,
Energy Sector ,
Mineral Leases ,
Oil & Gas ,
Property Owners ,
Tortious Interference ,
TX Supreme Court
The big trade-secret case, Southwestern Energy v. Berry-Helfand, has been worked over by the Texas Supreme Court. Highlights:
- Lack of certainty in damages does not preclude recovery.
- A “Flexible and...more