News & Analysis as of

TX Supreme Court Oil & Gas Property Owners

BakerHostetler

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

BakerHostetler on

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

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

Jackson Walker

Texas Supreme Court Clarifies Default Ownership of Produced Water in Oil & Gas Leases – Key Questions Remain

Jackson Walker on

On June 27, 2025, the Texas Supreme Court issued a pivotal decision in Cactus Water Services, LLC v. COG Operating, LLC, holding that under the language of the granting clause found in the standard oil and gas lease, produced...more

Vinson & Elkins LLP

Texas Supreme Court Clarifies Ownership of Salt Caverns

Vinson & Elkins LLP on

On May 16, 2025, the Texas Supreme Court issued a decision ruling that, absent specific contractual language, surface owners retain ownership of the caverns created by salt mining operations. The issue of ownership of salt...more

McGinnis Lochridge

Texas Supreme Court Rules on Modification of NPRIs

McGinnis Lochridge on

In this recent case, the Texas Supreme Court resolved whether ratification of a lease or signing of a stipulation agreement could transform a fixed non-participating royalty interest (NPRI) into a floating NPRI....more

McGinnis Lochridge

Tackling Free-Use and At-The-Well Royalties

McGinnis Lochridge on

This lease royalty case involved a dispute over whether the lessee was permitted to deduct volumes of gas used off the premises to power post-production activities on other gas produced from the same well. Carl v. Hilcorp...more

Gray Reed

Ratifications, Stipulations, and Fixed vs. Floating Royalty Interests

Gray Reed on

After four stops at the lower courts, Kenneth Hahn v. ConocoPhillips has been resolved by the Supreme Court of Texas. The Court opined on the effect of two instruments often used to clarify land titles in Texas: ...more

Gray Reed

Operator Escapes Liability For a Gas Kick and Resulting Fire

Gray Reed on

The Texas Civil Practices and Remedies Code, Chapter 95, limits a property owner’s liability when an independent contractor hired to construct, repair, renovate or modify an improvement to the owner’s property brings a...more

Gray Reed

Texas Supreme Court Rules on Correction Deeds in a Case of First Impression

Gray Reed on

What if you pay good money for a mineral interest and record the deed in the official public records, thereby securing your title? What if your predecessors-in-title decide among themselves they made a material mistake in a...more

Gray Reed

“No Obligation” Clause Dooms Oil and Gas Asset Bid

Gray Reed on

In Chalker Energy Partners III LLC v. LeNorman Operating LLC, the Texas Supreme Court reaffirmed its belief in the sanctity of the written contract and the freedom of parties to negotiate and agree to contracts as they...more

Womble Bond Dickinson

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

Womble Bond Dickinson on

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

Gray Reed

Option Contract Ruling Reversed by Texas Supreme Court.

Gray Reed on

North Shore Energy v. Harkins interpreted an Option Agreement between landowners and a producer over a 400 acre tract. In football they would say the Texas Supreme Court pancaked the plaintiff. In the law, some would call it...more

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