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Breach of Contract › Business Litigation › Oil & Gas

McGinnis Lochridge

"Void" Means Void: How Missing Consent Toppled a $2.5 Million Pipeline Judgment

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The Tyler Court of Appeals reversed a $2.5 million judgment against pipeline successors (Coffeyville Resources Crude Transportation, LLC v. ExxonMobil Pipeline Co., No. 12-23-00276-CV, 2025 WL 356222 [Tex. App.—Tyler Jan. 31,...more

McGinnis Lochridge

An Overview of the Standard Measure of Damages Arising from Claims Associated with an Oil and Gas Lease

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This Article examines legal damages in the oil and gas industry. More specifically, this Article identifies the rules for measuring common legal damages in oil and gas cases. Further, this Article seeks to identify all...more

McGinnis Lochridge

Plain Language Meets Common Sense: Hidden Traps in Oil Patch Contract Interpretation

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What happens when a court reads your contract literally for one issue but decides what 'makes sense' for another? A geophysicist just found out. In early April 2025, the Amarillo Court of Appeals reversed in part and...more

McGinnis Lochridge

Texas Business Court Weighs Jurisdiction over Out-of-State Property Interests

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When can a Texas court rule on New Mexico property disputes? The answer hinges on whether the property interest is 'central' or just 'incidental' to the real fight....more

Gray Reed

Texas Operator Protected From Royalty Payment Error

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The takeaway from DDR Weinert, Limited et al v. Ovintiv USA Inc. is that equitable recoupment rescued a royalty payor from its mistaken payment of royalties. But first, The events. The Richters were mineral lessors...more

Gray Reed

Two Words = Six Million Dollars: SCOTX Reverses Trial Court That Added Words to a Gas Transportation Agreement

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In American Midstream (Alabama Intrastate), LLC v. Rainbow Energy Marketing Corporation, the Texas Supreme Court held that the trial court improperly inserted the words “scheduled” and “physical” into a contract. By...more

Gray Reed

Operator Excused from Texas Relinquishment Act Claims

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In Williams O & G Resources, LLC v. Diamondback Energy, Inc., a federal magistrate judge concluded that the Texas Relinquishment Act does not apply to public-school lands patented after 1931. The report and recommendation was...more

McGinnis Lochridge

All Depths or Just One Formation? Court Clarifies Royalty Conveyance in Rock River v. Pioneer

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This recent case (Rock River Minerals, LP v. Pioneer Nat. Res. USA Inc., No. 08-23-00216-CV, 2024 WL 4528917 [Tex. App.—El Paso Oct. 18, 2024, no pet. h.]) explored whether an assignment of an overriding royalty interest,...more

Gray Reed

How Does the Model Form JOA Address an Operator/Non-Operator Dispute?

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Texas Crude v. Burlington Resources Oil and Gas considers the relationship between the operator and non-operators under Articles V and VI of the 1982 Model Form Joint Operating Agreement....more

Gray Reed

Beware Assignor: Own the Leases Before You Reserve the Override

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Let’s begin with a quiz. Armour purchases non-recourse mortgage notes, becoming a lienholder in 99 oil and gas leases and 13 wells; fails to record the transfer documents in the real property records; assigns the leases to...more

Roetzel & Andress

Roetzel & Andress: 2020 Appellate Year In Review

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The Appellate Law Practice Group of Roetzel & Andress represented clients in a wide variety of cases in both state and federal courts, appealing adverse trial court rulings and successfully defending lower court victories on...more

King & Spalding

Disclaiming Reliance in Texas Requires Specificity

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The Supreme Court of Texas in its recent IBM decision provided further clarity to what contracting parties must say in their contracts to disclaim fraudulent inducement claims. Int’l Bus. Mach. Corp. v. Lufkin Indus., LLC,...more

Gray Reed

Operator Can’t Recover Drilling Costs For Affiliate’s Expensive Rig

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In Elm Ridge Exploration Co., LLC v. Engle we are reminded of a little-used provision in the 1989 Model Form Operating Agreement. Article VI.D.1 allows the operator to use its own equipment, but his charges may not exceed...more

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