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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

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?

McGinnis Lochridge on

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

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

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

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

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