News & Analysis as of

Oil & Gas Appeals

Gray Reed

Texas Royalty Owner Bears Postproduction Costs on Gas Sold at the Wellhead

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City of Crowley v. TotalEnergies E&P USA, is a post-production cost (PPC) case with a predictable result. The Fort Worth Court of Appeals confirmed its reasoning in Shirlaine W. Props. Ltd. v. Jamestown Res., L.L.C from 2021,...more

Beveridge & Diamond PC

A Fifth Circuit Case on BACT Reflects Trend in Citizen Opposition to Gulf Coast Projects

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Last week, the U.S. Court of Appeals for the Fifth Circuit upheld the Texas Commission on Environmental Quality’s (TCEQ) issuance of an amended New Source Review (NSR) air permit to multinational joint-venture Port Arthur...more

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

Liquid Natural Gas Plant/Clean Air Act: Fifth Circuit Court of Appeals Addresses Challenge to Texas Commission on Environmental...

The United States Court of Appeals for the Fifth Circuit (“Fifth Circuit”) addressed in an August 12th Decision a challenge to a Clean Air Act Prevention of Significant Deterioration (“PSD”) Permit issued by the Texas...more

Faegre Drinker Biddle & Reath LLP

Double Take: Fifth Circuit’s Dual BELO Rulings Show Both General and Specific Causation Are Essential

We previously blogged about a decision in the In re Deepwater Horizon BELO litigation – Ruffin v. BP Exploration & Production, Inc. – in which the Fifth Circuit affirmed summary judgment for defendants in an alleged chemical...more

Gray Reed

A Lesson on How Not to Recover an NPRI in Texas

Gray Reed on

It seems to be fairly well settled that you can’t use trespass-to-try-title to recover a nonpossessory royalty interest in Texas. What if you call the interest a “mineral interest stripped of every attribute except the right...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 "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

Bennett Jones LLP

Spartan Delta Appeal Raises Uncertainty for Co-Lessees After Insolvency

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Years after an insolvency proceeding is closed, can a solvent co-lessee/working interest participant (WIP) still be on the hook for their former partner’s share of unpaid Crown royalties? A recent Alberta Court of Appeal...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

Blake, Cassels & Graydon LLP

Alberta Court Declares Ministerial Decision Under Oil Sands Royalty Regime Unfair and Unreasonable

In a judicial review, the Alberta Court of King’s Bench, in Imperial Oil Resources Limited v. Alberta (Minister of Energy), overturned decisions (Decisions) made by a delegate of the Minister of Energy, the Director of...more

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

Underground Injection Control: U.S. EPA Environmental Appeals Board Petition for Review Filed Challenging Three Michigan Brine...

Flow Water Advocates (“FWA”) filed a pleading before the United States Environmental Protection Agency (“EPA”) Environmental Appeals Board styled: PETITION FOR REVIEW OF UNDERGROUND INJECTION CONTROL PERMITS ISSUED AND...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

Bracewell LLP on

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

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

Storage Tank Enforcement: Tennessee Department of Environment and Conservation Proposed Order Addressing Covington, Tennessee...

The Tennessee Department of Environment and Conservation (“TDEC”) issued a June 18th Proposed Order and Assessment (“Order”) to Diamond Investments of TN Inc. (“Diamond”) addressing an alleged violation of underground storage...more

McGinnis Lochridge

Are Statute of Limitations Battles Becoming the New Frontline in Water Injection Cases?

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When your neighbor's wastewater tanks your oil wells, when exactly can you sue? A Texas court wrestles with a timing question reshaping industry battles....more

Houston Harbaugh, P.C.

You Can’t Have Two Main Characters

Houston Harbaugh, P.C. on

In a June 13, 2025 decision, the Pennsylvania Commonwealth Court held that a municipality impermissibly granted conditional use approval to an oil and gas well pad and interconnect facility on tax lots that were already...more

WilmerHale

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

WilmerHale on

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

Moore & Van Allen PLLC

Course Correction: U.S. Supreme Court Removed Roadblock for Railroad Construction Project, Requiring Substantial Deference to...

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A "Course Correction" of NEPA Review - In an 8-0 judgment, the U.S. Supreme Court recently struck down the D.C. Circuit Court of Appeals decision that had vacated the U.S. Surface Transportation Board’s (the “Board”)...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

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

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

Fund Eligibility/Storage Tank Enforcement: Tennessee Department of Environment and Conservation Proposed Order Addressing...

The Tennessee Department of Environment and Conservation (“TDEC”) issued a May 14th Order and Assessment (“Order”) to Greeneville Oil and Petroleum, Inc. and 737 Grace 1, LLC (collectively,“Respondent”) addressing alleged...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

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

Faegre Drinker Biddle & Reath LLP

Fifth Circuit Clouds Threshold Dose Analysis in Ruffin v. BP

Plaintiffs in toxic tort cases must prove both general and specific causation, generally through the testimony of experts. Experts must establish that a specific chemical exposure can (and did) cause the specific injury at...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

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