In Bradley v. Shaffer, Darrell, a beneficiary of a mineral trust established by his grandparents, purported to convey to Bradley his mineral interests that were subject to the trust and any interest held in trust that he...more
In Ohio, in calculating royalties in a market-value-at-the-well lease (as distinguished from a “proceeds” lease), post-production costs are to be shared proportionately by the working interest and royalty owners. ...more
Would you trust your $12 million arbitration to accountants rather than lawyers? Sometimes it makes sense. In Order_Apache v. YPF SA, delegating an accounting dispute to accountants was right. The problem was in the...more
Let’s suppose that someone (You? The other guy?) who operates wells in which others have an interest organizes the enterprise so that the owner of the leases, the owner of the overrides, the operator, several service...more
Cases like Hahn v. Gips et al are like eating your broccoli – not so tasty but lots of fiber. The “fiber” here is the effect of a partition deed in which not all the cotenants join....more
In the spirit of Halloween, Le Norman Operating v. Chalker Energy Partners III is about a scary statute: The Texas Uniform Electronic Transactions Act, the UETA....more
Welcome to the binary edition, where you have a choice: An informative and engaging stroll through the history of the oil and gas business in Texas, or a wonkish and also informative legal analysis....more
Semco, LLC v. The Grand, LTD. is nominally about a $15 million liftboat construction contract and the legal issues one would expect after a long trial and a big verdict. This post is more about how to administer and perform a...more
Occasionally we visit issues larger than one-off courthouse decisions. Here are a few selected stories on the extent to which fracking contributes to rising levels of methane and, maybe, to climate change. There are...more
In Glassell Producing Company v. Naquin, the question was:
Did a conveyance among siblings create a real right in property, or was it an appendage of a lease that ceased to burden the property once that lease was...more
How many times must an operator suffer for a mistake in a unit declaration? Samson Exploration LLC v. T. S. Reed Properties Inc. makes it twice. (See Hooks v. Samson Lone Star for the first round). The Texas Supreme Court...more
Conoco Phillips Company v. Ramirez et al is a helpful reminder when preparing a document transferring title:
“Family vernacular” is a great way to communicate in wedding toasts and funeral eulogies, not so much in land...more
In light of the adverse effects the storm, floods and tornadoes will have on oil and gas production, transportation and processing operations, we offer several bits of advice:
Force majeure -
Winds and floods are among...more
8/31/2017
/ Contract Terms ,
Energy Sector ,
Force Majeure Clause ,
Hurricane Harvey ,
Insurance Claims ,
Insurance Industry ,
Natural Disasters ,
Oil & Gas ,
Operating Agreements ,
Property Damage ,
Severe Weather
Lenders to Louisiana operators are likely to be reconsidering their business practices in light of Gloria’s Ranch v. Tauren et al.
A rather ordinary lease termination suit resulted in the lender Wells Fargo being...more
Noble Energy Inc. v. ConocoPhillips Company, a 6-to-3 Texas Supreme Court decision, is a reminder of two things:
How parties to a property transaction describe what’s being acquired and what’s being left behind can have...more
8/23/2017
/ Asset Purchaser ,
Commercial Bankruptcy ,
Contract Terms ,
Energy Sector ,
Environmental Claims ,
Executory Contracts ,
Indemnification Clauses ,
Oil & Gas ,
Purchase Agreement ,
Sale of Assets ,
TX Supreme Court
Subject-to, reservations-from, and exceptions-to problems have been lurking in the shadows of Texas jurisprudence for a while now, and the courts have been all over the map in recent holdings....more
Benjamin Franklin would be relieved. Just when it seems that the taxman always wins, he doesn’t. In CGG Americas, Inc. v. Commissioner the U. S. Tax Court concluded that a taxpayer need not own underlying hydrocarbons in...more
Rozel Operating v. Crown Point Holdings, LLC, et al., reminds one of the need to understand and apply the meaning of terms used in a statute one is attempting to enforce. And imaginative theories don’t work without evidence...more
We recently discussed Freeman v. Harleton. The opinion shows the transaction as a bunco job. Here’s more:
Bufkin and Wayne Freeman have done business together since the 1980s. They had a co-development agreement with...more
Enterprise Products Partners, L.P. et al v. Energy Transfer Partners, L.P. et al reversed one of the largest jury verdicts in Texas history. You will like this decision if...
...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
There’s no better place in the oil patch to play the blame game than 10,000 feet of leaky wellbore.
What went wrong?
In Justiss v. Oil Country Tubular Corporation, Justiss, a drilling contractor, entered into an IADC...more
By now, you’ve heard the Trump Administration is conducting a “Section 232 Investigation” into the effect of imported steel and aluminum products on national security. Here’s a primer on the topic....more
Here is what we believe is an unusual situation: A gas unit is formed. The gas well ceases to produce. Another gas well produces from an oil unit, but the lease at issue is not included in the oil unit. Is the lease...more
According to Mr. Bumble, the law is an ass. I disagree (Know a lawyer who’s an ass? That’s another conversation). In Davis v. Mueller the law was not an ass, per se, but as applied by the Texas Supreme Court it showed little...more