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Pipelines Contract Terms

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

Gray Reed

Texas Supreme Court Allows Enforcement of a JOA Debt After Foreclosure

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In Steelhead Midstream Partners, LLC v. CL III Funding Holding Company, LLC, the Texas Supreme Court authorized a pipeline owner’s breach-of-contract claim—alleging a co-owner used foreclosure to avoid cost-sharing...more

Holland & Knight LLP

A Closer Look at Nettye Engler Energy, LP, v. BlueStone Natural Resources II, LLC

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The Supreme Court of Texas has once again tackled the heavily contested issue of postproduction costs in royalty calculations. In Nettye Engler Energy, LP, v. BlueStone Natural Resources II, LLC, No. 20-0639, the Court was...more

Gray Reed

Texas Supreme Court Clarifies Postproduction Cost Decision

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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

Pillsbury - SeeSalt Blog

Contractual Delivery Terms Control Application of Alabama’s Wholesale Oil License Fee

The Alabama Tax Tribunal held the taxpayers’ wholesale sales of fuel that entered and exited the state via the Colonial Pipeline were subject to the state’s wholesale oil license fee.  The sales in question were made to...more

Alston & Bird

Is “Into the Pipeline” the Equivalent of a Wellhead Valuation? Not So Fast, Says Texas Supreme Court

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Our Oil & Gas Team parses a ruling from Texas that reminds courts to look at the entire contract, not just a favorite word or phrase. The parties disagreed about where along the pipeline royalty valuation should occur. The...more

Gray Reed

Buried Pipeline Ruling Favors Lessors

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In Texas, what happens to an obligation to bury pipelines when, after creation of the obligation, the surface and minerals are severed?  Henry v. Smith explains....more

Patton Sullivan Brodehl LLP

Deed Language Defines the Scope of a Reserved Easement

Under California law, a grant deed is generally understood to transfer the entire fee title interest in real property, unless it expressly states otherwise.  (See, e.g., Civil Code sections 1105 and 1113.) If the seller wants...more

Gray Reed

Texas Supreme Court Says Don’t Mess With a Written Contract

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It is no surprise to Texas Supreme Court watchers that in Energy Transfer Partners et al v. Enterprise Products Partners LP et al. the court rejected claims that the parties had created a partnership by actions that varied...more

Skadden, Arps, Slate, Meagher & Flom LLP

Texas High Court Lays Partnership Formation Questions to Rest

On Friday, January 31, 2020, the Supreme Court of Texas clarified the law of partnership formation in the closely watched case of Energy Transfer Partners, L.P. et al. v. Enterprise Products Partners, L.P. et al. The case...more

King & Spalding

Freedom of Contract Cited as the Reason for Texas Supreme Court's Affirmation of Court of Appeals Judgment in ETP v. Enterprise

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On January 31, 2020, the Texas Supreme Court (the “Court”) affirmed the 2017 judgment of the Dallas Court of Appeals that Texas law upholds the rights of contracting parties to agree not to be partners unless certain...more

Gray Reed

What is “Oil or Gas” as Used in a Pipeline Easement?

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In Texan Land & Cattle II, Ltd. v. ExxonMobil Pipeline Company a Texas court of appeals ruled that “oil or gas” is not limited to “crude petroleum,” but includes refined petroleum products gasoline and diesel....more

Womble Bond Dickinson

When is a Deal a Deal? Texas Supreme Court Weighs in on Two Landmark Oil & Gas Cases

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Business contracts are often compared to marriages, and for good reason. Both imply a deep level of mutual commitment to the relationship. But at what point in the relationship do businesses say “I do,” and at what point may...more

Orrick - Antitrust Watch

Merger Non-Compete Clauses – Be Lawful or Be Gone

Non-compete clauses are commonly included in M&A agreements. Although generally recognized as lawful, non-competes must fulfill certain requirements to comply with antitrust and competition laws. A recent FTC enforcement...more

Gray Reed

Smart Pig Technology … and the Texas Merger Doctrine

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Today is a two-fer. The questions: When does the “merger doctrine” not work in Texas, and how do courts treat technological developments created after a contract becomes effective?...more

Troutman Pepper Locke

Ohio Appellate Court Finds That Coal Mining Entities Are Liable to Pipeline Operator for Preventative Measures to Protect Against...

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Columbia Gas Transmission, LLC v. Ohio Valley Coal Co., 2019 BL 99544 (Ohio Ct. App. Mar. 21, 2019) - Columbia Gas Transmission, LLC (“Columbia”) operated a high-pressure gas pipeline. A portion of pipeline crossed land...more

Bracewell LLP

Texas Supreme Court Expands Upon the Rights of Oil and Gas Producers to Deduct Post-Production Costs in Burlington Resources Oil &...

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To the relief of oil and gas producers, the Texas Supreme Court ruled on March 1, 2019, in Burlington Resources Oil & Gas Company, L.P. v. Texas Crude Energy, LLC (No. 17-0266), that post-production costs were rightfully...more

Gray Reed

Can Emails Establish an Easement in Texas?

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Email is the way we communicate these days. Whether emails create a contract is important if you’re thinking nothing short of a dead tree could ever bind anybody or, to the contrary, your goal is to establish an enforceable...more

Hogan Lovells

Resolving disputes arising out of supply chain disruption in Nigeria's oil and gas market

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In this hoganlovells.com interview, Hogan Lovells counsel Jerome Finnis discusses how disparate factors, such as force majeure events and changes in law, can provoke disruptions in Nigeria’s oil and gas supply chain. He also...more

Gray Reed

Pipeline Partnership Verdict Reversed

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Enterprise Products Partners, L.P. et al v. Energy Transfer Partners, L.P. et al reversed one of the largest jury verdicts in Texas history. You will like this decision if... ...more

Porter Hedges LLP

Business Litigation Alert - "Enterprise Products v. ETP: No Legal Obligation really means No Legal Obligation"

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A Texas Court of Appeals ruled this week that when companies agree in writing that they have no legal obligations to proceed with a project, they mean it. That may appear to be a simple concept but a jury came to a different...more

McGuireWoods LLP

R&I Update: Hot Topics in Oil and Gas Restructurings, Volume 3: Yes, Gathering Agreements Can Be Rejected as Executory Contracts...

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Reuters recently reported that “the rout in crude prices is snowballing into one of the biggest avalanches in the history of corporate America, with 59 oil and gas companies now bankrupt[.]” In March, we described how surging...more

McGuireWoods LLP

R&I Update: Hot Topics in Oil and Gas Restructurings, Volume 2 Can Gathering Agreements Be Rejected as Executory Contracts?

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“The carnage is going to be terrible,” cried a recent Dallas Morning News headline. “It’s a hellacious problem,” lamented another article. It’s no secret the energy sector has come upon hard times. Oil prices are down 70...more

Troutman Pepper Locke

Locke Lord QuickStudy: Fifth Circuit Holds the Word “Replace” in Easement Grant is Ambiguous

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Neither the courts of Texas nor Louisiana have directly addressed the meaning of the word “replace” in the context of a pipeline easement and, in particular, whether replacement requires the removal of the old pipeline or...more

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