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Mineral Leases Mineral Rights TX Supreme Court

BakerHostetler

Pore Space Update: Texas Joins the Majority American Rule, but Accommodation Issues Remain at Play

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Texas is the latest in a growing number of states to tackle the issues related to ownership and severability of the pore space underneath land as carbon capture and sequestration (CCS) remains a relevant tool in CO2...more

Houston Harbaugh, P.C.

Creating a Chasm or Filling a Void?

Houston Harbaugh, P.C. on

If you drive around Pennsylvania, you are likely not going to encounter a “For Sale” sign offering a cavern in the ground. But the voids, pore spaces, and cavities in the subsurface can be quite valuable now and in the...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

Jackson Walker

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

Jackson Walker on

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

Holland & Knight LLP

Texas Supreme Court: Subsurface Storage Rights Generally Belong to Surface, Not Mineral Owner

Holland & Knight LLP on

The Supreme Court of Texas has provided helpful guidance as to ownership of subsurface storage rights and pore space. In the recent holding in Myers-Woodward, LLC v. Underground Services Markham, LLC, the court held that "the...more

Pillsbury - Gravel2Gavel Construction & Real...

From Shale to Salt: Texas Supreme Court Applies Uniform Rule for Ownership of Subsurface Caverns

In a closely watched opinion issued on May 16, 2025, the Texas Supreme Court in Myers-Woodward, LLC v. Undergrounds Services Markham, LLC, — S.W.3d —, No. 22-0878, 2025 WL 1415892 (Tex. May 16, 2025) resolved a long-uncertain...more

McGinnis Lochridge

Texas Supreme Court Rules on Modification of NPRIs

McGinnis Lochridge on

In this recent case, the Texas Supreme Court resolved whether ratification of a lease or signing of a stipulation agreement could transform a fixed non-participating royalty interest (NPRI) into a floating NPRI....more

Gray Reed

Ratifications, Stipulations, and Fixed vs. Floating Royalty Interests

Gray Reed on

After four stops at the lower courts, Kenneth Hahn v. ConocoPhillips has been resolved by the Supreme Court of Texas. The Court opined on the effect of two instruments often used to clarify land titles in Texas: ...more

Houston Harbaugh, P.C.

Texas Supreme Court Addresses Fuel Gas Question

Many oil and gas leases across Pennsylvania allow the driller to divert and use volumes of raw gas to power and fuel production operations both on and off the leasehold. Is a driller obligated to pay a royalty on that volume...more

Gray Reed

Supreme Court of Texas Sorts Out Complicated Assignment of Oil and Gas Leases

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In Occidental Permian, Ltd. et al v. Citation 2002 Investment LLC  the Supreme Court construed a 1987 assignment from Shell Western E& P Inc. to Citation of a large number of properties. The instrument contained these...more

Gray Reed

Supreme Court of Texas Decides Another Post-Production Cost Dispute

Gray Reed on

In Carl v. Hillcorp Energy the Supreme Court of Texas addressed the relationship between the lessee’s use of gas off-premises under a free-use clause and the lessor’s burden to share post-production costs (PPCs) under the...more

Gray Reed

Texas Supreme Court Rules on Suspension of Proceeds of Oil and Gas Production

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Freeeport-McMoRan Oil and Gas, LLC and Ovintiv USA Inc. v. 1776 Energy Partners LLC  presented a recurring question faced by Texas oil and gas producers:  When can proceeds of production be withheld by the operator without...more

Houston Harbaugh, P.C.

Texas Supreme Court Rules That 1924 Deed Conveyed One Half Of The Oil and Gas Estate

Houston Harbaugh, P.C. on

The calculation of production royalties and the deduction of post-production costs remains a controversial topic here in Pennsylvania. As we have written before, there is another frustrating and often confusing...more

Gray Reed

Texas Supreme Court Clarifies Postproduction Cost Decision

Gray Reed on

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

Gray Reed

Texas Supreme Court Rules on Correction Deeds in a Case of First Impression

Gray Reed on

What if you pay good money for a mineral interest and record the deed in the official public records, thereby securing your title? What if your predecessors-in-title decide among themselves they made a material mistake in a...more

Gray Reed

Texas Supreme Court to Consider Continuous Development Clause

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The Texas Supreme Court has agreed to hear oral arguments in a dispute over an “accumulation” provision in a continuous development clause of an oil and gas lease.  The case is Endeavor Energy Resources L.P. v. Energen...more

Gray Reed

Surrounding Circumstances Don’t Always Inform Deed Construction

Gray Reed on

Here we continue our discussion of the Texas Supreme Court’s opinion in Piranha Partners et al. v. Joe B. Neuhoff et al. determining that an assignment of an overriding royalty in minerals unambiguously conveyed the override...more

Gray Reed

Executive Right Holder Liable for Refusing to Lease

Gray Reed on

In resolving disputes among the mineral interest family, there is no bright-line rule delineating the duty of the executive right holder. In Texas Outfitters Limited v. Nicholson, the Texas Supreme Court explained why. The...more

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

Oil and Gas Lease: Texas Supreme Court Addresses Offset Provision

The Texas Supreme Court (“Court”) recently ruled in favor of Murphy Exploration & Production Company—USA (“Murphy”) in a dispute arising from the location of an offset well on the properties of Shirley Mae Herbst Adams and...more

Gray Reed

Ask and You Shall (Not?) Receive: Retained Acreage Clauses and the Texas Supreme Court

Gray Reed on

Two Texas Supreme Court decisions published on the same day confirm that retained acreage clauses that vary in language from one instrument to another will likely vary in effect. Depending on the language, the lessee might...more

Porter Hedges LLP

Business Litigation Alert: "Texas Supreme Court Ruling Highlights the Importance of Heeding 'Red Flags' During Pre-Contract...

Porter Hedges LLP on

Last month, the Texas Supreme Court upheld a lower court’s decision to toss a lawsuit by Orca Assets GP LLP against JP Morgan Chase over property in the Eagle Ford Shale. ...more

Gray Reed

NPRI Reservation Survives Rule Against Perpetuities

Gray Reed on

Recall the Battle of the Bastards: The heroic Lady Sansa and the duplicitous Lord Baelish gallop over the hill to save the foolish Jon Snow from the heinous Ramsey Bolton. In similar fashion, but without the malnourished...more

Gray Reed

Fraud Claim Rejected for Unreasonable Reliance

Gray Reed on

The ruling from the Supreme Court of Texas in JP Morgan Chase Bank, N.A., et al v. Orca Assets, G.P., L.L.C. was foreseeable. Experienced energy professionals who pass on the opportunity to examine title for themselves are...more

Gray Reed

Opinions to Expect From the Texas Supreme Court

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The Texas Supreme Court recently heard oral argument in three intriguing oil and gas cases. Here’s what you need to know about two of them (We’ll address the third case soon)....more

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