Scribner v. Wineinger, et al. affirms that acquisition of a Texas oil and gas leasehold by limitations is not defeated if the adverse possessor’s acknowledgement of a claimant’s title comes too late....more
The 2019 Texas legislature enacted a new Property Code Section 5.152 to protect mineral and royalty owners from a certain species of fraudulent transactions perpetrated on trusting and/or naïve and/or out of state mineral...more
11/5/2019
/ Contract Interpretation ,
Contract Terms ,
Fraud ,
Fraudulent Conveyance ,
Future Royalties ,
Gas Royalties ,
Land Titles ,
Mineral Leases ,
Mineral Rights ,
Oil & Gas ,
Property Owners ,
Scams ,
Transfer of Interest
Quick answer: It depends on what the lease says. Last week featured a tug-of-war between a producer and the community in which it operates; this week in HJSA No. 3 LP v. Sundown Energy LP it’s the producer and the lessor....more
9/19/2019
/ Abandonment ,
Business Operations ,
Contract Terms ,
Forfeiture ,
Lease Termination ,
Mineral Extraction ,
Mineral Leases ,
Mineral Rights ,
Oil & Gas ,
Ongoing Operations ,
Rules of Construction ,
Well Drilling
What’s good for the goose is not always good for the gander, at least in some places. It appears that the North Dakota Supreme Court has adopted the minority “ Marketable Product Rule” in connection with a 1979 North Dakota...more
In Swift Energy Operating LLC v. Regency Field Services LLC, claims for damage to leased minerals allegedly caused by contamination spreading from an H2S-CO2 injection well were barred by limitations. When the cause of action...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
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
Less than a year ago, we discussed the “Unanswered Questions” left in the wake of Devon Energy Prod. Co., LP v. Apache Corp. (which did answer the question, “Who is a ‘Payor’ Under the Texas Natural Resources Code?”). ...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
Are you buying oil and gas leases in Ohio and expecting to be paid for your work? Consider Dundics v. Eric Petroleum, in which the Ohio Supreme Court concluded that land professionals who do not possess an Ohio real estate...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
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
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
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
The Louisiana Supreme Court’s reversal of lower courts in Gloria’s Ranch, L.L.C. v. Tauren Expl., Inc. eliminates a major source of anguish for Louisiana energy lenders and their borrowers. You might recall our report on the...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
The question posed in our recent discussion of Devon Energy v. Apache Corporation was the meaning of “payor” under the Texas Division Order Statute. ...more
You’ve secured the right leases. You’ve drilled nice wells in the right locations. Now, will you pay the right royalty owners? Follow Devon Energy Production Company, L.P. v. Apache Corporation, to be sure that you do....more