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TX Supreme Court Energy Sector Oil & Gas

BakerHostetler

Pore Space Update: Texas Joins the Majority American Rule, but Accommodation Issues Remain at Play

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Texas is the latest in a growing number of states to tackle the issues related to ownership and severability of the pore space underneath land as carbon capture and sequestration (CCS) remains a relevant tool in CO2...more

Houston Harbaugh, P.C.

Creating a Chasm or Filling a Void?

Houston Harbaugh, P.C. on

If you drive around Pennsylvania, you are likely not going to encounter a “For Sale” sign offering a cavern in the ground. But the voids, pore spaces, and cavities in the subsurface can be quite valuable now and in the...more

McGinnis Lochridge

Oil & Gas Newsletter: Producer's Edge, Vol. 7, Issue 1

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The McGinnis Lochridge Oil and Gas Practice Group publishes the Producer’s Edge with the purpose of keeping our valued clients and contacts in the oil and gas industry updated and informed regarding interesting Texas case law...more

Houston Harbaugh, P.C.

Colored Horses, Toxic Brews and Lithium Too?

Does the Texas Supreme Court’s Decision in Cactus Water Services v. COG Operating Provide Guidance About Lithium and Rare Earth Minerals Ownership in Pennsylvania? Lithium demand is expected to continue to increase as...more

Oliva Gibbs

Muscled Out While “Muscling In”: The Role of Actual Drainage in MIPA

Oliva Gibbs on

In Ammonite Oil & Gas Corp. v. R.R. Comm’n of Tex., the Texas Supreme Court held that the Railroad Commission (the “RRC”) did not abuse its discretion in denying a “muscle in” application under the Texas Mineral Interest...more

McGuireWoods LLP

Producers May Subtract Gas Used to Power Post-Production Activities From “At-the-Well” Royalty Payments

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In Carl v. Hilcorp Energy Co., the Texas Supreme Court—addressing certified questions from the Fifth Circuit—held that producers may subtract the volume of gas powering post-production activities from “at-the-well” royalty...more

Troutman Pepper Locke

The Texas Supreme Court Holds Interest Must Be Simple Absent an Express, Clear, and Specific Provision for Compounding

Troutman Pepper Locke on

The Texas Supreme Court has clarified Texas law concerning how to calculate interest that is being paid pursuant to an agreement or statute. Samson Exploration, LLC v. Bordages, No. 22-0215, 2024 WL 2869049 (Tex. June 7,...more

Skadden, Arps, Slate, Meagher & Flom LLP

Three Unfolding Cases Could Shape Future Energy Litigation, and Perhaps Business Practices

A stream of judicial decisions in the pipeline will have important implications for the energy industry. The three cases discussed below are among those that energy litigators and industry professionals are watching in 2024....more

Bradley Arant Boult Cummings LLP

Contextual “Construction” of Force Majeure Clauses

The Texas Supreme Court recently provided new guidance in interpreting force majeure language in an oil and gas drilling dispute. In Point Energy Partners Permian, LLC v. MRC Permian Company, the court held that the oil and...more

Bracewell LLP

Storage Wars: Ownership of Subsurface Salt Cavern Storage Rights

Bracewell LLP on

Underground salt caverns are commonly used for the storage of liquids including liquefied hydrocarbons. These caverns are created by solution mining of salt from inside underground salt formations and could play a pivotal...more

McDermott Will & Schulte

Reasonably Prudent Operator or Good and Workmanlike Manner: Does Your Contract Have the Right Standard of Care?

The standard of care is an important provision in any operating, management or services agreement because it sets forth the expectations of the parties as to how the contract should be carried out. It also functions as the...more

Skadden, Arps, Slate, Meagher & Flom LLP

Supreme Court of Texas Clarifies Allocation of Post-Production Costs in Oil and Gas Royalties in BlueStone Natural Resources II,...

On March 12, 2021, the Supreme Court of Texas issued a unanimous opinion that clarifies when a lessee is entitled to deduct post-production costs from royalties paid to the lessor under oil and gas leases. Construing a lease...more

King & Spalding

Energy Newsletter - March 2020

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Disrupting the Disruptor: How a Prepared and Proactive Owner Can Mitigate the Effects of Coronavirus on Construction Projects - Once a remote health issue in China, the rapidly spreading coronavirus (COVID-19) has become...more

Winstead PC

Texas Supreme Court Holds That  Parties Can Conclusively Agree That, As Between Themselves, No Partnership Will Exist Unless...

Winstead PC on

In Energy Transfer Partners, L.P. v. Enter. Prods. Partners, L.P., one pipeline company sued another for breaching a duty of loyalty that allegedly arose out of a partnership to develop a pipeline. No. 17-0862, 2020 Tex....more

Jackson Walker

In Major Partnership Decision, Texas Supreme Court Affirms That Businesses Can Contract for Conditions Precedent to Preclude the...

Jackson Walker on

Disputes often arise over whether parties have agreed to, or by their conduct they have, committed themselves to a transaction. On January 31, 2020, the Texas Supreme Court delivered its decision in Energy Transfer Partners,...more

Winstead PC

ETP v. Enterprise: Texas Partnership Created by Conduct — A Dog That Won’t Hunt

Winstead PC on

Following Supreme Court arguments last month, the final chapter in the long-running legal battle between Energy Transfer Partners LP (“ETP”) and Enterprise Products Partners (“Enterprise”) is finally coming to an end. ETP is...more

Womble Bond Dickinson

WIPEOUT!: Common Language in “Anti-Washout” Provision Violates the Rule Against Perpetuities

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In Yowell v. Granite Operating Co . 557 S.W.3d 794 (Tex. App.—Amarillo 2018, pet. granted), the Texas Court of Appeals for the Seventh District in Amarillo affirmed the trial court’s determination that an “anti-washout”...more

Womble Bond Dickinson

Whose Milkshake is Whose?: Pennsylvania Supreme Court Considers Whether the Rule of Capture Applies to Hydraulic Fracturing

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The Rule of Capture has been a foundational concept of oil and gas prospecting for 150 years. The Rule of Capture exists to provide an affirmative defense to drillers when they tap into oil and gas pockets that cross property...more

A&O Shearman

Texas Supreme Court Agrees to Review Controversial Ruling Regarding Texas Partnerships

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On June 28, 2019, the Texas Supreme Court agreed to review a ruling from the Fifth Court of Appeals in Dallas in the case of Energy Transfer Partners LP et al. v. Enterprise Products Partners LP et al, No. 529 S.W.3d 531...more

Gray Reed

Oil Field Technology … and a Texas Bill Aimed at Royalty Owners

Gray Reed on

Welcome to today’s grab-bag of unrelated topics. The climate avengers are clever in the way they demonize the industry. They give zero credit for technological advancement. Truth is, the industry’s use of technology is...more

Gray Reed

Texas Supreme Court to Consider Macondo Blowout Insurance Dispute

Gray Reed on

The 2012 Macondo Well blowout and Deepwater Horizon rig explosion gave rise to a slew of lawsuits. Our subject today is one of them. ...more

Gray Reed

Texas Supreme Court Decides Another Fixed-or-Floating Royalty Case

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Coke or Pepsi? Elvis or the Beatles? Left Twix or Right Twix? Fixed or floating royalty? Among the great debates of recent decades, few have proven quite as frustrating as the great “Fixed v. Floating” royalty debate in Texas...more

Porter Hedges LLP

Business Litigation Alert: "Texas Supreme Court Ruling Highlights the Importance of Heeding 'Red Flags' During Pre-Contract...

Porter Hedges LLP on

Last month, the Texas Supreme Court upheld a lower court’s decision to toss a lawsuit by Orca Assets GP LLP against JP Morgan Chase over property in the Eagle Ford Shale. ...more

Gray Reed

NPRI Reservation Survives Rule Against Perpetuities

Gray Reed on

Recall the Battle of the Bastards: The heroic Lady Sansa and the duplicitous Lord Baelish gallop over the hill to save the foolish Jon Snow from the heinous Ramsey Bolton. In similar fashion, but without the malnourished...more

Gray Reed

Fraud Claim Rejected for Unreasonable Reliance

Gray Reed on

The ruling from the Supreme Court of Texas in JP Morgan Chase Bank, N.A., et al v. Orca Assets, G.P., L.L.C. was foreseeable. Experienced energy professionals who pass on the opportunity to examine title for themselves are...more

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