News & Analysis as of

Breach of Contract Energy Sector

McGinnis Lochridge

When "Imprudent" Becomes Irrelevant: How Express JOA Language Overrides Operator Discretion

McGinnis Lochridge on

In this case, Texas Crude Energy, LLC (Texas Crude) and Warwick-Athena, LLC (Warwick) (collectively, the non-operators) sued Burlington Resources Oil & Gas Co., LP (Burlington or the operator) after Burlington refused to...more

King & Spalding

New York Appellate Court Refuses to Apply Criminal Usury Law to Post-Default Interest

King & Spalding on

On February 13, 2025, a New York intermediate appellate court affirmed the grant of summary judgment against energy companies that defaulted on their loan obligations. In 2020 and 2021, an engineering firm specializing in...more

Gray Reed

Geophysicist’s Claims Turn on Definitions

Gray Reed on

Sewak v. Sutherland Energy Co. Ltd. is of interest for how the court defined terms commonly used in consulting contracts in the oil and gas industry, and how difficult it is to foresee all contingencies when negotiating a...more

Gray Reed

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

Gray Reed on

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

How to Work for Free Under a Master Service Agreement

Gray Reed on

Kouatli v. Endeavor Energy Resources L.P. offers valuable (and obvious) lessons on how NOT to perform a Master Service Agreement in the oil patch (or, per Billly Bob and friends, “The Patch”), to wit...more

Oliva Gibbs

The Force (Majeure) May Not Be So Strong in This One

Oliva Gibbs on

In a recent lawsuit, an oil producer claims significant monthly losses due to a forced pipeline shutdown, alleging the pipeline company violated their contract by failing to adhere to U.S. laws and ensure operational...more

Morgan Lewis - Power & Pipes

Real-World Litigation Impacts of Contract Clauses in Energy Contracts: Defining Change of Control Provisions Favorably

A change of control provision gives a party certain rights under a contract, such as the right to receive payment, require consent, or terminate the contract, in the event of a specified trigger. Triggers can relate to a...more

Morgan Lewis - Power & Pipes

Real-World Litigation Impacts of Contract Clauses in Energy Contracts: The Importance of Carefully Crafting Disclosure Schedules

Care and diligence must be used when crafting disclosure schedules in merger and acquisition documents. Unclear or incomplete disclosure schedules can have drastic implications for future litigation. Poorly crafted disclosure...more

Morgan Lewis - Power & Pipes

Real-World Litigation Impacts of Contract Clauses in Energy Contracts: The Game-Changing Difference of Choice of Law and Forum...

Choice of law and forum provisions are standard clauses often buried in the back of a contract, easily overlooked and frequently ignored. Although these provisions do not typically come up unless there is a dispute between...more

Kilpatrick

4 Key Takeaways | The Future of Construction, Infrastructure and Energy Disputes in the Endemic Age

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Kilpatrick Townsend partner Thomas Allen recently presented "The Future of Construction, Infrastructure and Energy Disputes in the Endemic Age" for the Inter-Pacific Association's Arbitration Day at Maxwell Chambers in...more

Wilson Sonsini Goodrich & Rosati

Fifth Circuit Vacates FERC Orders, Reaffirming Contract Rejection Powers in Bankruptcy

On July 19, 2022, the U.S. Court of Appeals for the Fifth Circuit added to a stream of recent decisions upholding a debtor's right to "reject" regulated energy contracts in bankruptcy, even over the objection of the Federal...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Rules that Royalty Clause Referencing Both ‘Gross Proceeds’ and ‘At the Well’ Was Ambiguous

Houston Harbaugh, P.C. on

Let’s assume that you own 125 acres in Tioga County. In 2017, you negotiate a new oil and gas lease with XYZ Drilling. During the negotiations, you insist on a “gross royalty” which prohibits the deduction of...more

McGuireWoods LLP

Texas Appellate Court Analyzes Purchase and Sale Agreement Drafting and Terms

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The 11th Court of Appeals in Texas recently issued an opinion analyzing provisions of purchase and sale agreements (PSAs) governing working interests in oil and gas leases. In the opinion in Apollo Exploration, LLC v. Apache...more

McGuireWoods LLP

Expert Testimony, Substantiated Facts Tip the Scale: 8th Circuit Ruling Favors Energy Company

McGuireWoods LLP on

The saga of J.B. Turner v. XTO Energy, Inc. reached another milestone on Feb. 25, 2021, when the 8th U.S. Circuit Court of Appeals granted summary judgment in favor of XTO Energy on Turner's claims of breach of contract and...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Solar Energy/Project Development: Federal Court Addresses Breach of Contract Claim

The United States District Court for the Southern District of New York (“Court”) in a June 4th Opinion and Order (“Opinion”) addressed a contractual dispute involving a solar energy generating project. See DK LIPA LLC v. SB...more

Vinson & Elkins LLP

[Webinar] Navigating Heightened Contractual Risk in an Economic Downturn - May 28th, 12:00 pm - 1:00 pm CT

Vinson & Elkins LLP on

We’re excited to introduce Navigating, a new webcast series created to assist clients and friends of the firm in navigating the new normal – whether that be navigating through pandemic-related issues, new industry dynamics,...more

BakerHostetler

Energy Contracts: In-House Counsel, Force Majeure, and the COVID-19 Pandemic

BakerHostetler on

COVID-19 is disrupting contracts in our energy industries, impacting electric power and petroleum, and both product providers and service providers. Contracts will be breached. The phrase “force majeure” will be top of mind. ...more

King & Spalding

Bankruptcy Court Rules that Dedications Within Gathering Agreements "Run with the Land"

King & Spalding on

On December 20, 2019, the Bankruptcy Court for the Southern District of Texas in Alta Mesa Holdings, LP v. Kingfisher Midstream, LLC (In re Alta Mesa Resources, Inc.) held that dedications in gathering agreements create...more

K&L Gates LLP

PG&E Bankruptcy Court Rejects FERC’s “Concurrent” Jurisdiction over PPA Rejection

K&L Gates LLP on

In response to the Federal Energy Regulatory Commission (“FERC”), the U.S. Bankruptcy Court for the Northern District of California held that the rejection of wholesale power purchase agreements “is solely within the power of...more

Robins Kaplan LLP

Delaware Supreme Court Increases Damages from $1 to $126 Million, Holds Chancery Misapplied Efficient Breach Doctrine

Robins Kaplan LLP on

On May 2, 2019, Justice Traynor authored a unanimous opinion in which the Supreme Court of Delaware, sitting en banc, reversed a decision by Vice Chancellor Laster of the Delaware Court of Chancery awarding Leaf Invenergy...more

Gray Reed

Oil Field Technology … and a Texas Bill Aimed at Royalty Owners

Gray Reed on

Welcome to today’s grab-bag of unrelated topics. The climate avengers are clever in the way they demonize the industry. They give zero credit for technological advancement. Truth is, the industry’s use of technology is...more

Troutman Pepper Locke

Florida Federal Court Dismisses Fluor Enterprises’ $67M Claim Against Duke Energy for Wrongful Draw Down of Credit Letter

Troutman Pepper Locke on

Tampa D Fluor Enterprises, Inc. v. Duke Energy Florida, LLC, No. 8:19-cv-00224, 2019 BL 135007, at *1 (M.D. Fla. Apr. 16, 2019) - On April 16, 2019, a Florida federal court dismissed without prejudice Fluor Enterprises’...more

Holland & Knight LLP

FERC Asserts Its Authority to Review Rejection of Wholesale Power Agreements Days Before PG&E Files Bankruptcy

Holland & Knight LLP on

On Jan. 25, 2019 – just days before Pacific Gas and Electric (PG&E) proposes to file its bankruptcy case – the Federal Energy Regulatory Commission (FERC) issued an order asserting its concurrent authority to approve proposed...more

Carlton Fields

Florida Federal Court Confirms Arbitration Award, Finding Defendants Did Not Meet “Heavy Burden” to Vacate the Award

Carlton Fields on

Floridians for Solar Choice, Inc. (“FSC”), is a Florida not-for-profit corporation formed for the purpose of qualifying for a solar energy amendment ballot initiative in Florida’s general election....more

Gray Reed

Texas Accomodation Doctrine Claim Repudiated

Gray Reed on

Harrison v. Rosetta Resources Operating LP presents a wacky? time-wasting? clever? unsuccessful attempt to expand reinvent the Texas accomodation doctrine....more

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