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Louisiana Operator Slapped by Appellate Court

Louisiana’s compulsory pooling scheme seeks to balance the interests of individual landowners and oil and gas operators to promote responsible development of natural resources. Because of compulsory pooling, operators are not...more

North Dakota Supreme Court to Hear Case on Pore Space Rights

[Updated] The North Dakota Supreme Court will hear oral arguments on Thursday to consider who owns the right to the porous spaces within subsurface rock formations. The issue is over Senate Bill 2344, passed by the...more

A Texas Lien is Invalid if the Mineral Owner is Not Yet Obligated to Pay

A subcontractor’s mineral lien in Texas is invalid when, at the time the mineral owner receives notice of the lien affidavit, the mineral owner is not yet obligated to pay the contract price to its contractor.  So says Pearl...more

Stray Cows and Oilfield Operations Do Not Play Well Together

Foote and Cypert v. Texcel Exploration and Decker determined that cattle loitering uninvited around a well and tank battery are trespassers, not licensees. How it happened - Foote arranged with Yates to graze 650 head...more

Texas Supreme Court Clarifies Postproduction Cost Decision

It was jurisprudential Groundhog Day as the Supreme Court of Texas handed down Nettye Engler Energy v. Bluestone Natural Resources, another in a series of postproduction cost disputes, only two days after Puxsutawney Phil...more

Texas Court Decides What “Likewise” Means in a Conveyance

Consider the power of a single word over the fortunes of the parties to a property deed. Such was the court’s analysis in Barrow Shaver Resources, LLC, et al v. NETX Acquisitions, LLC, et al....more

What’s Up With Those West Texas Earthquakes?

If you dispose of produced water you are no-doubt aware of the intensive earthquakes being observed across the Midland and Delaware Basins. In West Texas Earthquake Observations, Implications for the Oil and Gas Industry,...more

Louisiana Pipeline Intrusion Case Remanded to Determine a Remedy

The baseball season might be in jeopardy, but litigants are swinging for the fences. In Mary v. QEP Energy, the parties entered into a Pipelins Servitude Agreement over Ms. Mary’s 160 acres. One of QEP’s pipelines extended...more

Is the Oil and Gas Industry Worth Defending?

Of course it is. (Apologies for the clickbait.) If further reading would damage you, I recommend a subscription to the Guardian. Otherwise, consider these points of view when conversing with those in need of enlightenment....more

Louisiana Court Considers Texas and Louisiana Oilfield Anti-Indemnity Acts

Federal Insurance Company et al v. Select Energy Services LLC and Exco et al. is a reminder for negotiators of indemnity and defense obligations in oilfield contracts that choice of law is important. Ignore it when drafting...more

2021’s Bad Guys in Energy

Like wild mushrooms after a warm summer rain, and undaunted by the COVIDs, the fraudsters, the grifters, and the “the spawn of the Devil’s own strumpet”* were prolific before meeting the wrath of the courts and the regulators...more

Buried Pipeline Ruling Favors Lessors

In Texas, what happens to an obligation to bury pipelines when, after creation of the obligation, the surface and minerals are severed?  Henry v. Smith explains....more

Texas Supreme Court to Review the Lessee’s Covenant to Protect Against Drainage

First, a word for you scriveners: Preserve your reputation and the honor of your law school writing instructor by preparing clear and understandable contracts. ...more

Texas Supreme Court to Review Approval of Injection Well Permit

The Texas Supreme Court has granted petition for review of a 2019 decision in Dyer et al v. Texas Commission on Environmental Quality . At issue is whether rescission of a Railroad Commission no-harm letter before the TCEQ...more

Texas Court Accepts Only One Meaning of “Leased Premises” in an Oil and Gas Lease

How many different meanings can parties attribute to a term in an oil and gas lease?  Answer: As many as they want, but the court will only use one, says King Operating et al v. Double Eagle Andrews, LLC et al....more

Another Post-Production Cost Decision in Texas

In resolving a dispute over post-production cost deductions from oil and gas royalties (PPC’s), the court in Shirlaine West Properties Ltd et al v. Jamestown Resources, LLC and Total E&P USA, Inc. opined that the case ” … is...more

Fair and Reasonable Offer Required Before Force-Pooling in Texas

Ammonite Oil and Gas Corporation v. Railroad Commission of Texas illustrates the difficulties faced by lessees attempting to force-pool a tract under the Mineral Interest Pooling Act.  In this case, the applicant Ammonite...more

Addendum Prevails over Form … Again

When the form contract says one thing and the addendum says another, which one would you expect to prevail?...more

Louisiana Court Considers Buried and Surface Flowlines

In Emerald Land Corp. v. Trimont Energy (BL) LLC, a Louisiana federal court considered whether a lessee was required to remove flowlines buried beneath the surface and canal bottoms of property subject to mineral leases....more

Statute of Frauds Torpedoes an Overriding Royalty Sale

Here we go  again, in Gary and Theresa Poenisch Family Ltd. P’Ship v. TMH Land Servs., Inc., learning that a purported Texas land transaction will not be enforced if the parties fail to comply with the Statute of Frauds....more

Delaware Bankruptcy Court Treats Royalty Owner Claims as Unsecured

If you are a royalty owner and have questions about how your claim is likely to be treated when your lessee/operator goes into bankruptcy in Delaware, In re MTE Holdings LLC is a significant case....more

Added Party Can’t Avoid Amended Master Service Agreement

Let’s begin with a question: Master service agreements (“MSA’s” in the trade), once agreed upon, often remain in force for years. As time passes and circumstances change, the parties amend, sometimes losing sight of the...more

Texas Court Rules on a Retained Acreage Clause

Sometimes writing too many alternatives into an oil and gas lease invites confusion … which provokes litigation … which results in disappointment for somebody … or everybody. ...more

Louisiana Federal Court Allows Injunctive Relief Under FERC Certificate of Public Convenience and Necessity

Resistance was futile for defendants opposing a temporary injunction sought by a party armed with a FERC Certificate of Public Convenience and Necessity that includes condemnation rights under the Natural Gas Act....more

Fifth Circuit Tells the Oil Patch That a Day Rate is Not a Salary

Under the Fair Labor Standards Act, what is required for an employee to be exempt from overtime pay? Ordinarily, it’s a guaranteed minimum salary. As the Department of Labor has explained, being paid on a “salary basis” means...more

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