A Focus on Energy: M&A Trends in the Energy Sector
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
Texas Crude v. Burlington Resources Oil and Gas considers the relationship between the operator and non-operators under Articles V and VI of the 1982 Model Form Joint Operating Agreement....more
Alas, we might never know. Opiela v. Railroad Commission of Texas and Magnolia Oil & Gas Operating, was a challenge to the Commission’s authority to issue permits for allocation wells and wells drilled under Production...more
On President Trump’s first and second days in office, the new administration released a flurry of executive actions, in the form of both memorandums and executive orders, focused on the energy industry:...more
Assignments of interests in oil and gas leases often incorporate by reference outside agreements. This can be a helpful shortcut to avoid including every lengthy and confidential provision that was drafted during negotiations...more
In Mistretta v. Hilcorp Energy Company, unleased mineral owner Mistretta sued Hilcorp alleging failure to provide requested production and well cost information pertaining to an oil well operated by Hilcorp. The well was in a...more
As we approach the 20th anniversary of the Marcellus Shale play, one issue remains constant: the ongoing debate over the deduction of post-production costs. Landowners all across Pennsylvania have spent countless hours...more
In re: EP Energy E&P Company, LP considered three lease maintenance provisions in several oil and gas leases. The federal district court ruled that the leases were maintained in force after cessation of production despite...more
On November 7, 2024, several Pennsylvania state senators from oil and gas producing regions introduced Senate Bill 1346 of 2024, which proposes to change the way that revenues from Pennsylvania’s unconventional well fee are...more
Let’s assume you own a 135 acre farm in Tioga County, Pennsylvania. In 2020, you negotiate a new oil and gas lease with XYZ Drilling Company. During the negotiations, you insist on a cost free, no deduction royalty of 17%. ...more
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
In April of 2024, the Railroad Commission of Texas (“RRC”) posted a year-end review of production for the year of 2023. According to the RRC, Texas oil and gas production reached record highs in the year of 2023....more
Let’s assume that you purchase a 105 acre farm in Greene County in 2022. You purchase only the surface estate while the seller, Farmer Jones, retains the underlying oil and gas rights. You intend to grow corn and winter...more
In Self v. BPX Operating, a case with significant implications for Louisiana operators and royalty owners, the Supreme Court of Louisiana ruled that the doctrine of negotiorum gestio in La. Civil Code art. 2292 does not allow...more
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
This article focuses on the state of Texas law regarding wellbore rights and various related issues raised by transactions involving such rights (and other similar lease severance issues) and provides some practical tips to...more
Let’s assume you own 165 acres in Tioga County. In 2019, you sign a new oil and gas lease with ABC Drilling. You negotiate an 18% net royalty. The royalty clause, however, requires ABC Drilling to calculate the royalty on...more
In Plum Borough v. Zoning Hearing Board of the Borough of Plum,____ A.3d ____ , No. 1198 CD 2022 (Pa. Commw. Ct. Jan. 29, 2024), the Pennsylvania Commonwealth Court vacated the grant of a special exception to Penneco...more
t is well established that forced pooling under Oklahoma law is done on a “unit-wide basis rather than on an individual wellbore basis.” However, never has it been the case that an election made under one forced pooling order...more
The Biden administration issued a final rule this Wednesday aimed at curbing methane leaks from oil and gas drilling on federal and tribal lands. Adoption of the rule is its latest action to crack down on emissions of...more
When it comes to renewable energy, hydrogen is hailed as a pivotal resource in the zero-carbon game plan. Hydrogen energy is accessible, produces lower greenhouse gas emissions and can use existing gas infrastructure to power...more
Since the early 1900’s, your family has owned a 105 acre farm in Greene County, Pennsylvania. In 2024, you and your siblings sign an oil and gas lease with XYZ Drilling Company. The language in the lease states that it...more
In response to critics who said that proposed new statewide water conservation rules — aimed at cutting urban water use even in years when California is not in a drought — were too complicated and costly, the State Water...more
True Oil LLC v. BLM is a recent opinion by the Wyoming Federal District Court, based on the appeal of an order out of the BLM Rawlins Field Office. At issue was whether a fee surface owner can grant a subsurface easement...more
A company in New York is attempting to secure leases to allow it to produce oil and gas and to use the leased land for a carbon dioxide injection program for long-term storage. Does this herald a new type of development that...more