News & Analysis as of

Summary Judgment Oil & Gas

Gray Reed

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

Gray Reed on

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

McGinnis Lochridge

When Force Majeure Isn't Enough: The Causation Trap That Cost Kinder Morgan $100 Million

McGinnis Lochridge on

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

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

McGinnis Lochridge

When $180 Million Rides on an Expert's Supplementation Decision

McGinnis Lochridge on

$180M oil case lost when Apollo refused to fix expert's flawed damages model. Without expert testimony meant no damages recovery in technical fields. In Apollo Exploration, LLC v. Apache Corporation, No. 11-19-00183-CV, 2025...more

McGinnis Lochridge

Plain Language Meets Common Sense: Hidden Traps in Oil Patch Contract Interpretation

McGinnis Lochridge on

What happens when a court reads your contract literally for one issue but decides what 'makes sense' for another? A geophysicist just found out. In early April 2025, the Amarillo Court of Appeals reversed in part and...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

Gray Reed

Texas Operator Protected From Royalty Payment Error

Gray Reed on

The takeaway from DDR Weinert, Limited et al v. Ovintiv USA Inc. is that equitable recoupment rescued a royalty payor from its mistaken payment of royalties. But first, The events. The Richters were mineral lessors...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

McGinnis Lochridge

Production Disputes and Estoppel Claims Cloud Lease Termination in Milam County

McGinnis Lochridge on

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

Baker Botts L.L.P.

Write it Down or Forever Hold Your Peace: Texas Supreme Court Rejects Fraud Claims Based on Oral Representations in Mineral Deals

Baker Botts L.L.P. on

On Friday, May 9th, the Supreme Court of Texas addressed important issues regarding the enforcement of written contractual representations in its per curiam opinion styled Roxo Energy Co., LLC et al. v. Baxsto, LLC, ---...more

Lowenstein Sandler LLP

Petroleum Exclusion Reaffirmed Despite Assertions of Hazardous Substances Within It: Middle District of North Carolina CERCLA...

Lowenstein Sandler LLP on

On May 8, the Middle District of North Carolina granted summary judgment dismissing cost recovery and declaratory judgment claims brought under the Comprehensive Environmental Response, Compensation, and Liability Act...more

McGinnis Lochridge

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

McGinnis Lochridge on

A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more

Gray Reed

Geophysicist’s Claims Turn on Definitions

Gray Reed on

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

Vorys, Sater, Seymour and Pease LLP

U.S. District Court Finds No Evidence of Continuing Trespass and Holds Permanent Trespass Claim is Barred by Statute of...

In Briggs v. Southwestern Energy Production Co. (Briggs II), the Middle District of Pennsylvania directed summary judgment to Southwestern Energy (SWN) and dismissed the plaintiffs' claims of trespass and conversion. The...more

Oliva Gibbs

Will the Ohio Supreme Court Clear up the Muddy Waters of the DMA?

Oliva Gibbs on

Within the Ohio Dormant Mineral Act (hereinafter, “DMA”), there is often a question of the diligence a surface owner should employ when seeking the mineral owner to declare the mineral interest abandoned. The oft-cited case...more

McGinnis Lochridge

Winter Storm Uri and Force Majeure: The Legal Battles Continue

McGinnis Lochridge on

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 to Work for Free Under a Master Service Agreement

Gray Reed on

Kouatli v. Endeavor Energy Resources L.P. offers valuable (and obvious) lessons on how NOT to perform a Master Service Agreement in the oil patch (or, per Billly Bob and friends, “The Patch”), to wit...more

Houston Harbaugh, P.C.

Federal District Court Sends Pennsylvania Royalty Dispute To Trial

Houston Harbaugh, P.C. on

On September 6, 2024, the United States District Court for the Middle District of Pennsylvania denied dueling summary judgment motions concerning the interpretation of a royalty provision in Chambers v. Equinor USA Onshore...more

Gray Reed

Winter Storm Uri – No Summary Judgment This Time

Gray Reed on

Unit Petroleum Company v. Koch Energy Services, LLC is another force majeure case arising out of winter storm Uri. Unlike a similar case, summary judgment was denied because, said the United States District Court, The word...more

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

Polk County Fuel Station/Arkansas Petroleum Storage Tank Trust Fund: Arkansas Department of Energy & Environment - Division of...

As previously noted in a June 26th post, Mena Short Stop, LLC (“Mena Short Stop”) filed a pleading before the Arkansas Pollution Control & Ecology Commission (“Commission”) addressing an issue arising under the Arkansas...more

Steptoe & Johnson PLLC

Pennsylvania Court Upholds Cross-Unit Drilling Under Act 85

Steptoe & Johnson PLLC on

On January 24, 2023, the U.S. District Court for the Middle District of Pennsylvania held that Act 85 of 2019, which permits drilling horizontal oil and gas wells across existing drilling units, is not unconstitutional....more

Holland & Hart LLP

Eighth Circuit Affirms Producer's Royalty Calculations Under North Dakota Law

Holland & Hart LLP on

The United States Court of Appeals for the Eighth Circuit has affirmed a district court’s ruling that overriding royalty owners generally must bear their share of post-production costs under North Dakota law. The Eighth...more

Gray Reed

Lease Perpetuated Beyond Primary Term Without Production in Paying Quantities

Gray Reed on

If perpetuation of a mineral lease beyond the primary term is contingent upon continuous operations, do traditional notions of “production in paying quantities” always matter? Spoiler: No....more

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

Oil Contamination/Remediation: New York Court Considers Potential Liability of Insurance Company/Environmental Consultant

The New York Supreme Court – Appellate Division (Second Department) (“Court”) addressed in an October 20th Decision & Order (“Decision”) alleged damages associated with the remediation of oil contamination. See Bennett v....more

Holland & Knight LLP

Fifth Circuit's Seaman Status Realignment Brings New Considerations for Offshore Oil & Gas and Wind Industry Operators

Holland & Knight LLP on

Since the enactment of the Jones Act, courts have wrestled to define "seaman" and who is entitled to remedies under the Jones Act. The Jones Act grants a "seaman" a negligence cause of action against his employer and only a...more

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