News & Analysis as of

Oil & Gas Liability

Paul Hastings LLP

RWE Case Establishes Legal Precedent for Corporate Climate Accountability Worldwide

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A recent ruling by the Higher Regional Court of Hamm dismissed a plaintiff’s individual claim for climate damages but established a legal precedent with significant implications for energy companies operating in Germany:...more

Mintz

Climate Tort Lawsuit in South Carolina Dismissed by State Court

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On August 6, 2025, a state court judge in South Carolina dismissed the climate change tort lawsuit filed by the City of Charleston against a number of major fossil fuel companies. (This lawsuit was one of approximately three...more

Pillsbury Winthrop Shaw Pittman LLP

Water, Reused: Texas Reshapes Liability and Regulatory Rules on Produced Water, Leaves Ownership Questions Unanswered

The Texas legislature passed a series of bills aimed at modernizing the legal and regulatory landscape for the handling and reuse of produced water—a byproduct of oil and gas operations. These developments address permitting,...more

McGinnis Lochridge

Drowning in Liability: Court Extends "Waste" Rule to SWD Operator; but preserves RPO defense

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In a watershed ruling, the El Paso Court of Appeals extends "waste" liability under the Nat. Res. Code to commercial disposal well operator—potentially increasing exposure for this critical wastewater industry—while...more

ArentFox Schiff

Three Takeaways From $745 Million Louisiana Verdict Against Chevron for Coastal Wetland Damage

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Public companies can face significant liability based on past operations. While most industrial companies have long-term experience evaluating potential remediation obligations imposed by laws such as the federal...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

Fox Rothschild LLP

New York’s Climate Change Superfund Act: What You Need to Know

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On December 26, 2024, New York Governor Kathy Hochul signed into law S02129B, also known as the New York Climate Change Superfund Act (Act). This law is modeled after the federal Comprehensive Environmental Response,...more

Gray Reed

Louisiana Oilfield Anti-Indemnity Act Nullifies an Indemnity Obligation

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In In the Matter of Offshore Oil Services, Inc., Offshore owned and operated the M/V Anna. Offshore sued Island Operating Company for exoneration and/or limitation of liability for a personal injury claim by an employee of...more

BakerHostetler

The 5th Circuit’s Second Thoughts on Oilfield Indemnity Limitations

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The Fifth Circuit’s recent opinions in Cimarex Energy Co., et al. v. CP Well Testing, L.L.C. (2022) and Century Surety Co. v. Colgate Operating, L.L.C. (2024) provide divergent interpretations of how the Texas Oilfield...more

Bracewell LLP

Comprehensive WARN Act FAQ for Employers in the Energy Sector

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The US energy sector’s ongoing consolidation wave, which saw $250 billion worth of deals in 2023 and continues into the current year, is reshaping the industry landscape. As companies seek to deploy cash reserves and enhance...more

Alston & Bird

Emerging Climate Liability: Understanding State Climate Change Superfund Bills

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States are increasingly holding the fossil fuel sector liable for costs related to climate change. Our Environment, Land Use & Natural Resources Group unpacks what companies need to know about these new state “superfund”...more

Oliva Gibbs

Lessons in Chemistry: SCOTUS Declines Review in OPA Case

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The U.S. Supreme Court has declined to hear an appeal addressing whether a mixture of petroleum and chemicals constitutes “oil” under the Oil Pollution Act (OPA). In doing so, the Court has effectively rejected the efforts of...more

Gray Reed

Broad Form Indemnities in Construction Contracts (UPDATED)

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Broad form indemnities are common in Texas construction contracts, even though indemnifying someone for their own negligence is a tough pill to swallow.  ...more

Oliva Gibbs

The Texas Division Order Statute: How It Works and Who It Serves to Protect

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A division order is a statement executed by all owners of interests in an oil and gas well.  The division order’s essential purpose is to “authorize and direct to whom and in what proportion to distribute” proceeds from the...more

Gray Reed

Who is responsible for the negligence of the “company man” on the well?

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Parkman v. W&T Offshore, Inc., et al features two contractors playing hot potato over liability for a company man’s alleged negligence. The takeaway: Write your Master Service Agreement to address your liability concerns, and...more

Cadwalader, Wickersham & Taft LLP

Delaware Supreme Court Enforces Partnership Agreement’s Unambiguous Exculpation Provision Waiving Fiduciary Duties and Presuming...

On December 19, 2022, Chief Justice Seitz issued an opinion for a unanimous Delaware Supreme Court, sitting en banc, reversing and remanding the Delaware Court of Chancery’s decision in Bandera Master Fund LP v. Boardwalk...more

Gray Reed

Texas Court Addresses MSA Indemnity Obligations

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At issue in RKI Exploration and Production LLC v. AmeriFlow Energy Services LLC and Crescent Services, LLC. were two Master Service Agreements.  RKI was the operator of a well in Loving County; AmeriFlow and Crescent were...more

Gray Reed

Well Operator Escapes Liability After Disposing of its Working Interest

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Does a former working-interest owner of a well bear continuing responsibility for a defective gas line despite having conveyed its ownership interest? The line was constructed by the former owner as operator of record, and it...more

Mayer Brown

Okpabi and others v Royal Dutch Shell plc and another - UK Supreme Court provides further clarification on parent company...

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The UK Supreme Court has handed down its judgment in the case of Okpabi and others v Royal Dutch Shell Plc and another....more

Hogan Lovells

Okpabi decision: Supreme Court shows the difficulty UK domiciled parent companies have avoiding foreign claimants suing in England

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In Okpabi & Others v Royal Dutch Shell & Another the Supreme Court has applied the principles around parent company liability it set out in Lungowe v Vedanta Resources Plc, to hold that a claim against an English domiciled...more

Gray Reed

Industry Custom Determines Who Pays for a Well Emergency

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Who pays for fluid containment in an oil field emergency?  It depends on your contract and, we are told in Pearl Resources, LLC v. Charger Services, LLC, oil and gas industry custom....more

Gray Reed

Coronavirus and the Energy Industry: Drilling into Force Majeure Clauses

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Many oil and gas contracts – leases and JOAs for example – have force majeure clauses. The purpose is to allow contracting parties to suspend or terminate performance when certain circumstances arise that are beyond their...more

Jones Day

Pennsylvania Supreme Court Endorses Rule of Capture for Hydraulic Fracturing - Opinion in Briggs v. Southwestern Energy Co. left...

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The oil and gas industry in Pennsylvania attained a narrow victory after the Supreme Court of Pennsylvania endorsed the application of the rule of capture, the century-old legal principle shielding drillers from trespassing...more

Bricker Graydon LLP

Hydraulic fracturing and subsurface trespass in Pennsylvania: Briggs v. Southwestern Energy Production Co.

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In a case of first impression that drew interest across Appalachia, the Pennsylvania Supreme Court determined on January 22, 2020, that the rule of capture applies when natural gas is extracted through hydraulic fracturing...more

Gray Reed

Texas Supreme Court holds entire limits of insurance policy are available to reimburse Anadarko’s defense fees and expenses...

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In another dispute over insurance coverage related to the Macondo Well blowout (a/k/a Deep Water Horizon incident),1 the Texas Supreme Court held that an endorsement reducing a policy’s limits for “liability” stemming from a...more

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