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Oil & Gas Contract Terms

Haynes Boone

Shipping and Energy Newsletter - Summer 2025

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In this edition, we explore some of the strategic questions shaping conversations in the energy sector today and provide you with tools and information that will be helpful when entering into contracts....more

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

Vinson & Elkins LLP

The Stabroek JOA Arbitration: Is It Time to Revisit JOA Change in Control Provisions?

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In the first in our series on JOA issues, we discuss the recent Stabroek JOA Arbitration decision and what it means for JOA parties considering their own JOA Change in Control provisions. Chevron Corporation’s (“Chevron”)...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

Adams & Reese

Top Five Things to Know About Borrowing Money for Gulf State Energy Financing

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Oil and gas companies operating in the Gulf States frequently access financing to support their operations and exploration. The transactions involve unique legal complexities due to the nature of the industry and assets...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

Holland & Knight LLP

Colombia ANH adopta medidas para el cumplimiento y normalización de contratos de hidrocarburos

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La Agencia Nacional de Hidrocarburos (ANH) de Colombia emitió el Acuerdo No. 03 de 2025 por medio del cual se adoptan medidas para promover el cumplimiento y normalización de los actuales contratos y convenios misionales de...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

Holland & Knight LLP

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

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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

McGinnis Lochridge

Production Disputes and Estoppel Claims Cloud Lease Termination in Milam County

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In this lease termination case (Pruett v. River Land Holdings, LLC, No. 03-22-00478-CV, 2024 WL 1745652, at *1 [Tex. App.—Austin Apr. 24, 2024, no pet.]), the Austin Court of Appeals was tasked with examining a cessation of...more

Gray Reed

Who Owns the Subsurface Pore Space in Texas?

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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

McGinnis Lochridge

All Depths or Just One Formation? Court Clarifies Royalty Conveyance in Rock River v. Pioneer

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This recent case (Rock River Minerals, LP v. Pioneer Nat. Res. USA Inc., No. 08-23-00216-CV, 2024 WL 4528917 [Tex. App.—El Paso Oct. 18, 2024, no pet. h.]) explored whether an assignment of an overriding royalty interest,...more

Holland & Knight LLP

Oil and Gas Counterparty Risk: Dealing with Statutory Mineral Liens

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The legal frameworks governing statutory lien rights of oil and gas trade creditors vary significantly between Texas and Louisiana (as well as among other hydrocarbon-producing states). Material distinctions exist between...more

Holland & Knight LLP

Algeria Seeks Oil and Gas Investment

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Algeria, a country with a rich history in hydrocarbon production, is making significant strides in attracting global oil and gas investments. The National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) has...more

McGinnis Lochridge

Affirmative Defenses Are Insufficient to Rebut the Van Dyke Presumption

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Under Van Dyke, deeds with double-fraction royalty reservations referencing “1/8” are presumed to reserve a floating royalty interest unless clearly contradicted. Defenses like waiver, ratification, and limitations cannot...more

Seyfarth Shaw LLP

Tariff Turbulence: Navigating Force Majeure Risks in Texas Oil and Gas Contracts

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Upstream oil and gas producers and oilfield service companies are facing new uncertainties from recently imposed federal tariffs. In early 2025, the US expanded tariffs on a broad range of imports, suddenly increasing costs...more

Gray Reed

Geophysicist’s Claims Turn on Definitions

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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

McGinnis Lochridge

Tackling Free-Use and At-The-Well Royalties

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This lease royalty case involved a dispute over whether the lessee was permitted to deduct volumes of gas used off the premises to power post-production activities on other gas produced from the same well. Carl v. Hilcorp...more

Mayer Brown

5th Auction of Brazilian Government Oil: Tender Protocol and Draft Agreement

Mayer Brown on

On April 2, 2025, Pré-Sal Petróleo S.A. (“PPSA”) published the Draft Tender Protocol of the 5th Auction (“5th Auction”) for the sale of national oil from the Mero, Búzios, Sépia, Itapu e Bacalhau fields (“Draft Tender...more

Gray Reed

Marcel Exception to Louisiana Oilfield Anti-Indemnity Act Clarified

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An understanding of Willis v. Barry Graham Oil Service LLC requires knowledge of two principles underlying the Louisiana Anti-Oilfield Indemnity Act: The LOAIA bars an oilfield agreement to the extent that the agreement...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

McGinnis Lochridge

Who Can Enforce Surface Provisions in an OGL?

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Unitex WI, LLC v. CT Land & Cattle Co., LLC, No. 07-23-00390-CV, 2024 WL 3249338 (Tex. App.—Amarillo June 28, 2024, pet. filed)...more

McGinnis Lochridge

Winter Storm Uri and Force Majeure: The Legal Battles Continue

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Winter Storm Uri sent shockwaves through Texas, freezing gas supplies at a time of critical need and plunging the state into widespread power outages. In the aftermath, the courts have been flooded with force majeure claims,...more

Gray Reed

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

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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

Bradley Arant Boult Cummings LLP

Don’t Be a Junkyard Dog: Put Your Agreements in Writing!

A federal judge in Louisiana has dished out some harsh criticism of contractors who don’t reduce their contracts to writing. The case involves the decommissioning of 26 orphaned oil and gas wells near Baton Rouge. The...more

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