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
Today is a two-fer. The questions: When does the “merger doctrine” not work in Texas, and how do courts treat technological developments created after a contract becomes effective?...more
Did the lessor’s deposit of royalty checks for production from a pooled unit that she contends was improper ratify the improper pooling? In Strickhausen v. Petrohawk et al, a jury will have to sort out the answer....more
Imagine how much better off you would be if the contract you want to enforce had been reduced to writing. See West v. Quintanilla for what happens when it wasn’t....more
When you prepare, review and/or sign settlement agreements you sometimes pay less attention than you should to the details of those “standard” releases! Acme Energy Services, d/b/a Big Dog Drilling v. Staley et al. says,...more
4/29/2019
/ Commercial Bankruptcy ,
Contract Terms ,
Debt ,
Foreclosure ,
Liens ,
Mineral Exploration ,
Mineral Leases ,
Oil & Gas ,
Personal Liability ,
Real Estate Market ,
Releases ,
Settlement Agreements ,
Subcontractors
In resolving disputes among the mineral interest family, there is no bright-line rule delineating the duty of the executive right holder. In Texas Outfitters Limited v. Nicholson, the Texas Supreme Court explained why. The...more
In Mercedes-Benz USA, LLC, et al v. Carduco, Inc. dealership franchisee Carduco sued franchisor Mercedes Benz for fraudulent inducement and negligent misrepresentation. ...more
Marsha Ellison v. Three Rivers Acquisition, LLC, et al. reminds us what is required for an instrument to be a conveyance and what is required for a stipulation to be effective....more
An opinion that observes “Obviously the jury was not overly enamored with Appellants.” is worth discussing. The decision is Stephens et al v. Three Finger Black Shale Partnership et al....more
We told you to “Beware of Strips and Gores” back in 2012 and today we bring you Green et al v. Chesapeake et al, the sequel. Unlike cinema’s greatest follow-ups, this entry feels more like an unneeded rehash of the original....more
Did Texas law or New Mexico law apply to knock-for-knock indemnity provisions of a Master Work and Services Agreement? When a contract itself explicitly calls for Texas law, that is likely to be the outcome, as it was in...more
In 2016 Ridge contacted the McDaniels (Double Eagle’s predecessors) with an offer to “lease” their mineral interests in Winkler County. The McDaniels informed Ridge about a producing lease from 2004, and were assured that it...more
Is an overriding royalty interest lasting beyond the term of a lease-now-in-effect impossible to create? You saw the recent Texas Supreme Court opinion invalidating an anti-washout clause in TRO-X v. Anadarko Petroleum Corp....more
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
Coke or Pepsi? Elvis or the Beatles? Left Twix or Right Twix? Fixed or floating royalty? Among the great debates of recent decades, few have proven quite as frustrating as the great “Fixed v. Floating” royalty debate in Texas...more
As promised, here is a more in-depth analysis of the recent Supreme Court of Texas opinion in TRO-X LP v. Anadarko Petroleum Corp.
...more
We’re not saying you should do it, but there is a recipe for ridding oil and gas leases of pesky burdens: Enter into a new lease covering the same interest as the earlier lease and omit any reference to an intent that the...more
In Murphy Exploration & Production Co. — USA v. Adams the Texas Supreme Court held that an offset well clause in an oil and gas lease did not require the lessee to drill wells calculated to protect against drainage. Four...more
Two Texas Supreme Court decisions published on the same day confirm that retained acreage clauses that vary in language from one instrument to another will likely vary in effect. Depending on the language, the lessee might...more
In XTO Energy v. EOG Resources, a title dispute over the mineral estate in 1,653 acres in Atascosa and McMullen counties, Texas, the loser tried both, to no avail....more
4/24/2018
/ Contract Terms ,
Deed of Trust ,
Energy Sector ,
Foreclosure ,
Liens ,
Mineral Extraction ,
Mineral Leases ,
Mineral Rights ,
Oil & Gas ,
Real Estate Market ,
Transfer of Interest
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
Let’s get right to the takeaway: Despite the humble hourly rate operators are typically willing to fork over for title examination, the job isn’t easy and you’d better put your trust in a practitioner with expertise,...more
Email is the way we communicate these days. Whether emails create a contract is important if you’re thinking nothing short of a dead tree could ever bind anybody or, to the contrary, your goal is to establish an enforceable...more
The Texas Supreme Court recently heard oral argument in three intriguing oil and gas cases. Here’s what you need to know about two of them (We’ll address the third case soon)....more
12/19/2017
/ Appeals ,
ConocoPhillips ,
Contract Interpretation ,
Contract Terms ,
Energy Sector ,
Land Titles ,
Mineral Leases ,
Mineral Rights ,
Oil & Gas ,
Rule Against Perpetuities ,
TX Supreme Court