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A Lesson on How Not to Recover an NPRI in Texas

It seems to be fairly well settled that you can’t use trespass-to-try-title to recover a nonpossessory royalty interest in Texas. What if you call the interest a “mineral interest stripped of every attribute except the right...more

Texas Pore Space Ownership – Royalty Calculation

In Myers-Woodward, LLC v. Underground Services Markham, LLC et al, (discussed previously) the parties disagreed on how to calculate Myers’ royalty on salt produced by Underground....more

Who Owns the Subsurface Pore Space in Texas?

In a word, the surface estate owner. If that’s all the learning you are up for today, proceed directly to the musical interludes. If you want to know why the Supreme Court of Texas had to say this again, read on....more

Texas Court Shields Severed Mineral Interests from Tax Foreclosure Judgment

In Bush v. Yarborough Oil & Gas, LP a decades-old tax foreclosure judgment did not affect a previously severed mineral interest not owned by the delinquent taxpayer. The mineral owners were neither named nor served in the...more

Ratifications, Stipulations, and Fixed vs. Floating Royalty Interests

After four stops at the lower courts, Kenneth Hahn v. ConocoPhillips has been resolved by the Supreme Court of Texas. The Court opined on the effect of two instruments often used to clarify land titles in Texas: ...more

Louisiana Operator Survives Forfeiture of Right to Recover Drilling Costs

In Mistretta v. Hilcorp Energy Company, unleased mineral owner Mistretta sued Hilcorp alleging failure to provide requested production and well cost information pertaining to an oil well operated by Hilcorp. The well was in a...more

Choice of Words Matters in an Override Assignment

The question in Rock River Minerals, LP and Carr v. v. Pioneer Natural Resources, et al.: Did an assignment of overriding royalty interests in Texas oil and gas leases include a depth limitation? No....more

Federal Court Gives a Primer on Oil and Gas Lease Maintenance

In re: EP Energy E&P Company, LP considered three lease maintenance provisions in several oil and gas leases. The federal district court ruled that the leases were maintained in force after cessation of production despite...more

“Free of Cost” Royalty Includes Post-production Costs

Fasken Ranch Ltd et al v. Puig et al featured a reservation in the sale of a ranch of an undivided 1/16 non-participating royalty interest “free of cost forever.”  What does that mean? In particular, does it mean that the...more

Louisiana Supreme Court Issues Major Post-Production Cost Opinion

In Self v. BPX Operating, a case with significant implications for Louisiana operators and royalty owners, the Supreme Court of Louisiana ruled that the doctrine of negotiorum gestio in La. Civil Code art. 2292 does not allow...more

Wind Farm Ejected from Osage Land

In United States v. Osage Wind LLC a federal court in Oklahoma awarded permanent injunctive relief against a developer in the form of ejectment of a wind turbine farm after finding a continuing trespass....more

Supreme Court of Texas Sorts Out Complicated Assignment of Oil and Gas Leases

In Occidental Permian, Ltd. et al v. Citation 2002 Investment LLC  the Supreme Court construed a 1987 assignment from Shell Western E& P Inc. to Citation of a large number of properties. The instrument contained these...more

Supreme Court of Texas Decides Another Post-Production Cost Dispute

In Carl v. Hillcorp Energy the Supreme Court of Texas addressed the relationship between the lessee’s use of gas off-premises under a free-use clause and the lessor’s burden to share post-production costs (PPCs) under the...more

Fraud in an Oil Deal Revealed after Nine Years

In the Estate of Larry Wayne Ewers is a reminder of a few guidelines for oil and gas investing:   Think twice before giving money to your scripture-spouting friend from church....more

Floating Beats Fixed in Another Royalty Dispute

Recent Texas royalty cases seem to feature litigants on the fixed royalty side trying, more often than not in vain, to escape the clutches of Van Dyke v. Navigator and Hysaw v. Dawkins. See those decisions for the history of...more

Mineral Lessee’s H2S Damage Claim Rejected

Landowner and mineral owner (that includes you, lessee): Under ETC Texas Pipeline, Ltd. v. Ageron Energy, LLC, your right to sue for damages for tort or trespass could pass into history before you even know you have a claim....more

Is a Merger a “Transfer of Leases”?

In Texas, no. Read on to learn why. In Nortex Minerals LP v. Blackbeard Operating LLC et al, the question was the meaning of this limited assignment provision in the “Alliance Leases”, oil and gas leases covering 27,000 acres...more

Texas Court Considers Trespass by Produced Water Injection – Part 2

See yesterday’s post on Iskandia Operating, LLC v. SWEPI, LP - SWEPI’s motion for summary judgment alleged that Iskandia presented no evidence of one or more elements of its trespass claim, noting that the Supreme Court of...more

Duhig Rule Claim is Unsuccessful

The Duhig Rule is back, this time in Echols Minerals LLC, et al v. Green et al. Framing the discussion, Duhig v. Peavy Moore Lumber Company and Trial v. Dragon - In Duhig the grantor in a general warranty deed...more

Defense of a Deed Signed by a 12-Year-Old Fails

Foreshadowing a grim future for family weddings and funerals, Bell and Petsch v. Petch is a property dispute over five tracts of land in Gillespie County, Texas, in which siblings are the combatants. The events are less...more

Fifth Circuit Punts Postproduction Cost Question to Louisiana Supreme Court

The question in Self v, BPX Operating Company is how to balance the Louisiana Civil Code Art 2292 principle of negotiorum gestio against Louisiana’s conservation statutes....more

Lessee: Don’t Covet Your Neighbor’s Operations

Can the Texas lessee perpetuate his oil and gas lease by “constructive participation” in wells drilled by another? Under the facts in Cromwell v. Anadarko E&P Onshore, LLC, the answer is no....more

“Floating” Beats “Fixed ” in Texas Royalty Reservation

If you are scoring at home, count Permico Royalties LLC v. Barron Properties, Ltd., as a win for “floating” in the fixed-or-floating royalty battles. Permico, successor to grantors in a 1937 Deed for a tract in Ward County,...more

Will the Fixed or Floating Suits Ever End?

Rhetorical Question: When will Texas be done with fixed/floating royalty cases such as Johnson et al v. Clifton et al? Rhetorical Answer: When scriveners of deeds that are open to eight conceivably plausible meanings...more

“Harmony” in a Texas Mineral Reservation

In Smart v. 3039 RNC Holdings LLC, the court reminds us that it will harmonize all parts of a contract, even one that “is not a model of clarity”, to reach the correct result. ...more

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