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Contract Disputes Oil & Gas

McGinnis Lochridge

When Force Majeure Isn't Enough: The Causation Trap That Cost Kinder Morgan $100 Million

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In case you somehow forgot, the 2021 Valentines Day storm coined “Snovid,” “Snowmageddon,” or officially labeled Winter Storm Uri, blanketed Texas in snow and ice, even bringing snowfall to Galveston Beach. As temperatures...more

Houston Harbaugh, P.C.

Colored Horses, Toxic Brews and Lithium Too?

Does the Texas Supreme Court’s Decision in Cactus Water Services v. COG Operating Provide Guidance About Lithium and Rare Earth Minerals Ownership in Pennsylvania? Lithium demand is expected to continue to increase as...more

Oliva Gibbs

Get back in your lane: North Dakota Supreme Court limits NDIC’s adjudicatory authority over saltwater gathering disputes

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In a rare rebuke of the North Dakota Industrial Commission (“NDIC”), the Supreme Court held that saltwater gathering is a post-production cost — and that the NDIC lacks authority to adjudicate disputes over such costs between...more

McGinnis Lochridge

When $180 Million Rides on an Expert's Supplementation Decision

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$180M oil case lost when Apollo refused to fix expert's flawed damages model. Without expert testimony meant no damages recovery in technical fields. In Apollo Exploration, LLC v. Apache Corporation, No. 11-19-00183-CV, 2025...more

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

Jackson Walker

Texas Supreme Court Clarifies Default Ownership of Produced Water in Oil & Gas Leases – Key Questions Remain

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On June 27, 2025, the Texas Supreme Court issued a pivotal decision in Cactus Water Services, LLC v. COG Operating, LLC, holding that under the language of the granting clause found in the standard oil and gas lease, produced...more

McGinnis Lochridge

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

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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

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

Gray Reed

It’s Been Decided, In Texas the Mineral Lessee, Not the Surface Owner, Owns Produced Water

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In Cactus Water v. COG Operating, the Supreme Court affirmed that mineral lessee COG, not water rights owner Cactus (who derived it rights from the surface owner), has the right to possession, custody, control, and...more

Pillsbury - Gravel2Gavel Construction & Real...

From Waste to Wealth: Texas Supreme Court Ruling in Cactus Water Defines Produced Water Ownership, Sets Stage for Clarity on...

On June 27, 2025, the Texas Supreme Court issued its long-awaited decision in Cactus Water Services, LLC v. COG Operating, LLC, No. 23-0676, resolving a high-stakes dispute over the ownership of produced water—a vexing...more

Morgan Lewis

Supreme Court to Resolve Federal Officer Removal Circuit Split in WWII Contracts Case

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The US Supreme Court on June 16, 2025 granted certiorari for an appeal from a divided opinion by the US Court of Appeals for the Fifth Circuit relating to the federal officer removal statute. The appeal comes after a jury...more

Gray Reed

Ambiguity Frees Louisiana Royalty Owner From Post-Production Costs

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In Franklin v. Regions Bank the Fifth Circuit concluded that a royalty clause in a mineral lease resulted in a gross proceeds royalty; the royalty owners did not bear their proportionate share of post-production costs. Read...more

Bracewell LLP

Texas Supreme Court Affirms Mineral Estate Ownership of Produced Water in Landmark Ruling

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In a significant decision for Texas property and energy law, the Texas Supreme Court has affirmed the Eighth Court of Appeals’ ruling in Cactus Water Services, LLC v. COG Operating, LLC, holding that produced water — a...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

WilmerHale

SCOTUS to Decide the Scope of Federal Officer Removal for Federal Contractors

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On Monday, June 16, 2025, the U.S. Supreme Court granted certiorari in Chevron U.S.A. Inc. v. Plaquemines Parish, a case about the extent to which federal contractors can remove lawsuits to federal court under the federal...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

Vinson & Elkins LLP

Texas Supreme Court Clarifies Ownership of Salt Caverns

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On May 16, 2025, the Texas Supreme Court issued a decision ruling that, absent specific contractual language, surface owners retain ownership of the caverns created by salt mining operations. The issue of ownership of salt...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

Troutman Pepper Locke

Fifth Circuit Finds ANR Pipeline’s Tariff Does Not Require Simultaneous Delivery for Short-Notice Shipments

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On May 22, 2025, the U.S. Court of Appeals for the Fifth Circuit (“Fifth Circuit”) addressed a dispute between ANR Pipeline Company (“ANR”) and FERC. The case centered on the interpretation of ANR’s tariff and whether it...more

Gray Reed

Texas Supreme Court Decides Who Must Produce to Maintain an Oil and Gas Lease

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In Cromwell v. Anadarko E & P Onshore LLC the Supreme Court of Texas did what it so often does: In order to provide “legal certainty and predictability”, the Court considered the plain language of a contract in order to...more

Bracewell LLP

Surface vs. Mineral Owners: Texas Supreme Court Settles Salt Cavern Ownership Dispute

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The Texas Supreme Court has settled the issue of who owns the voids, known as salt caverns, created in subsurface salt formations (whether naturally occurring or caused as a result of salt mining operations). In...more

McGinnis Lochridge

Supreme Court of Texas Washes Out the “Anadarko Washout”

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The so called “Anadarko Washout” involves a washout of oil and gas leases on undivided working interests owned by non-operating mineral cotenants. This particular species of lease washouts is based on two recent cases from...more

Houston Harbaugh, P.C.

Sixth Circuit Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

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Let’s assume you own 105 acres in Greene County, Pennsylvania. In 2020, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

McGinnis Lochridge

Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

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In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

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