News & Analysis as of

Land Owners Oil & Gas

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

Houston Harbaugh, P.C.

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

Houston Harbaugh, P.C. on

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

Gray Reed

Who Owns the Subsurface Pore Space in Texas?

Gray Reed on

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

Blake, Cassels & Graydon LLP

Une mine de bitcoins exploitée sur une concession de pétrole et de gaz fait l’objet d’une injonction permanente

Dans Roy Flowers v. Persist Oil and Gas Inc., la Cour du Banc du Roi de l’Alberta (la « Cour ») a prononcé une injonction permanente interdisant à la défenderesse d’exploiter une entreprise de minage de bitcoins parce que le...more

Houston Harbaugh, P.C.

Ohio Court of Appeal Addresses Whether Gathering and Transportation Are Separate and Distinct Post-Production Activities

Houston Harbaugh, P.C. on

As we approach the 20th anniversary of the Marcellus Shale play, one issue remains constant: the ongoing debate over the deduction of post-production costs. Landowners all across Pennsylvania have spent countless hours...more

Houston Harbaugh, P.C.

Texas Appellate Court Rules That ‘Free of Cost’ Clause In 1960 Deed Prohibits The Deduction of Post-Production Costs

Houston Harbaugh, P.C. on

Let’s assume you own a 135 acre farm in Tioga County, Pennsylvania. In 2020, you negotiate a new oil and gas lease with XYZ Drilling Company. During the negotiations, you insist on a cost free, no deduction royalty of 17%. ...more

Oliva Gibbs

“After Acquired Title” to Remain a Caged-Bird after Dellit v. Schleder, 2022 MT 196, 518 P.3d 830

Oliva Gibbs on

Introduction - “No one has a vested interest in any rule of common law.” Meech v. Hillhaven W., 776 P.2d 488, 494 (Mont. 1989). Luckily the Montana legislature has codified the common law rule of after-acquired title as a...more

Oliva Gibbs

No Standing, No Sale: What Cardinal Minerals, LLC v. Miller Means for Ohio Mineral Transactions

Oliva Gibbs on

Who has standing to challenge abandonment of a mineral interest under the Ohio Dormant Mineral Act (“DMA”)? Earlier this year in two cases, both styled Cardinal Minerals, LLC v. Miller, the 7th District Court of Appeals of...more

Houston Harbaugh, P.C.

Federal District Court Sends Pennsylvania Royalty Dispute To Trial

Houston Harbaugh, P.C. on

On September 6, 2024, the United States District Court for the Middle District of Pennsylvania denied dueling summary judgment motions concerning the interpretation of a royalty provision in Chambers v. Equinor USA Onshore...more

Gray Reed

“Free of Cost” Royalty Includes Post-production Costs

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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

Gray Reed

Texas Surface Owner Denied the Right To Buried Pipeline

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Unitex WI LLC v. CT Land and Cattle Company LLC rejected the surface owner’s effort to force the mineral lessee to bury a pipeline below plow depth. Surface owner CT’s claim was based on a mineral lease signed by former owner...more

Houston Harbaugh, P.C.

Texas Appeals Court Rules that Surface Owner Could Not Enforce Pipeline Burial Covenant in Oil and Gas Lease

Houston Harbaugh, P.C. on

Let’s assume that you purchase a 105 acre farm in Greene County in 2022. You purchase only the surface estate while the seller, Farmer Jones, retains the underlying oil and gas rights. You intend to grow corn and winter...more

Gray Reed

Suit to Terminate Texas Oil and Gas Lease Fails for Lack of Evidence

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The real takeaway from Pruett v. River Land Holdings LLC is the reminder that the Texas Railroad Commission cannot adjudicate questions of title. ...more

Gray Reed

How Courts Look at Fixed or Floating Royalty Disputes

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Montgomery Trustee v. ES3 Minerals and Echo Minerals is another Texas fixed or floating royalty case. Before diving into the details, perhaps it’s best to describe the pattern the courts seem to fall into to resolve these...more

Houston Harbaugh, P.C.

Pennsylvania Court Rules That Shut-In Royalty Provision Had No Connection to the Duration of an Oil and Gas Lease

Houston Harbaugh, P.C. on

In its May 22, 2024 non-precedential memorandum decision in Frye v. Penn View Exploration, Inc., 919 WDA 2023 (Pa. Super. Ct. May 22, 2024), the Pennsylvania Superior Court found that an oil and gas lease’s shut-in royalty...more

Oliva Gibbs

Third Time’s a Charm: Ohio Supreme Court Remands Case for Failing to Follow Instructions

Oliva Gibbs on

In August 2016, AWMS Water Solutions, L.L.C., AWMS Holdings L.L.C., and AWMS Rt. 169, L.L.C. (collectively, “Appellants”) filed their original writ of mandamus to commence property-appropriation proceedings since, in their...more

Houston Harbaugh, P.C.

Texas Supreme Court to Address the Obligation to Calculate Royalty on Gas Used to Fuel Off-Lease Operations

Houston Harbaugh, P.C. on

Let’s assume you own 165 acres in Tioga County. In 2019, you sign a new oil and gas lease with ABC Drilling. You negotiate an 18% net royalty. The royalty clause, however, requires ABC Drilling to calculate the royalty on...more

Gray Reed

Mineral Lessee’s H2S Damage Claim Rejected

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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

McGuireWoods LLP

Ownership of Pore Space and Its Relation to Surface Estate

McGuireWoods LLP on

Land rights and interests continue to be a prominent fixture in the legal landscape. Among other things, the ownership of highly sought-after pore space has been at the center of multiple property rights cases and legislation...more

Houston Harbaugh, P.C.

West Virginia Appellate Court Rules That Estate Misconception Theory Did Not Apply To 1902 Deed

The calculation of production royalties and the deduction of post-production costs remains a troubling issue for Pennsylvania landowners. But there is another frustrating and often confusing royalty-related issue which can,...more

Gray Reed

Fifth Circuit Punts Postproduction Cost Question to Louisiana Supreme Court

Gray Reed on

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

Houston Harbaugh, P.C.

Federal Court In Ohio Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on

Let’s assume you own 95 acres in Greene County, Pennsylvania. In 2019, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Clarifies Nature of Oil and Gas Lease Under Pennsylvania Law

Let’s assume you own a 160-acre farm in Washington County. Your father purchased the farm in 1992 from a local farmer named Jones. (the “1992 Deed”). At the time your father purchased the farm, there was an oil and gas lease...more

Houston Harbaugh, P.C.

Landowners Should Be Careful Before Making Representations About Prior Oil and Gas Development on their Property

Houston Harbaugh, P.C. on

Before signing oil and gas leases, landowners should pay close attention to lease provisions asking for warranties and representations about prior oil and gas development on the land. These provisions are often buried in a...more

Houston Harbaugh, P.C.

The Strip and Gore Doctrine - Who Really Owns The Oil and Gas Under Roads and Highways?

Houston Harbaugh, P.C. on

Let’s assume your grandfather owned 99 acres in Washington County. In 1955, he sells a small portion of the farm to the Commonwealth of Pennsylvania in order to facilitate the construction of new State Route 39. This acreage...more

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