It’s common knowledge: Fair Labor Standards Act audits from the U. S. Department of Labor and lawsuits from workers for overtime violations are coming faster than a blitzing safety on a third and long.
Football pundits like to discuss Red Zone effectiveness. Driving to the goal line doesn’t much matter if you don‘t score. So, why would a negotiating party fail to score an enforceable contract while negotiating from the Red...more
USA v. Citgo Petroleum highlights the excruciating degree of detail in federal regulations and the gymnastics the EPA will employ justify a prosecution. The Fifth Circuit has reversed Citgo Petroleum’s conviction for...more
Political actions have consequences. A force majeure clause in New York oil and gas leases does not modify the primary term of the habendum clause and the leases are not extended because of the state ban “moratorium” on...more
Riddle: What’s the difference between a hydrocarbon molecule and the underground structure which the molecule inhabits?
Answer: In Texas, you can own one and not the other, according to Lightning Oil Co. v. Anadarko E&P...more
Therapist: “We’re here today in group to bring closure to the traumatic events of Crosstex North Texas Pipeline L.P. v. Gardiner. Each side claims mistreatment by his adversary and by one component or another of the civil...more
You do, whether you are a vendor or an operator. Matador Production Company vs. Weatherford Artificial Lift Systems, Inc. is a treatise on what can go wrong with a frac job: Failure of pumps, worker inexperience, failure of...more
Your Texas legislators have done their work and the citizens are safe for the next two years. The other good news is that industry supporters generally believe the 2015 Legislature was their friend.
House Bill 2: Set...more
Quiz: How is baseball not like litigation? Plaintiffs who fail to pay attention to the clock that is the statute of limitations end up as just more detritus littering courtrooms everywhere. See Ranchero Esperanza. Ltd. v....more
It’s been said that your most important decisions are made when you write your contract, not when you have to sue on it. Kachina Pipeline Company v. Lillis agrees. In a gas-purchase agreement, can the pipeline operator...more
First, an apology. I have brought shame to my own self and this blog for failing to invoke trigger warnings about activities I will mention again, after the appropriate trigger warning. (I had no idea there were so many.)...more
We recently discussed failure to produce in paying quantities. Another decision involving the same lessee had a different result. Why? The question in both cases was whether the well was capable of producing in paying...more
What is your guiding principle when writing agreements? “The more the words the less the meaning, and how does that profit anyone?” Ecclesiastes 6:11. or “The beginning of wisdom is the definition of terms.” Socrates...more
Your well consultant just cemented 10,000 feet of tubing inside the casing of your eight million dollar well, … a neighboring operator frac’ed his Eagle Ford well into your Austin Chalk completion, thereby trespassing and...more
In Texas, lost profits can’t be recovered as damages unless proven to a “reasonable certainty”.
Question 1: What does that mean?
Question 2: Does it matter if the deal is in Bulgaria?
Let’s get rid of the...more
One consequence of falling oil prices is leases that cease to produce in paying quantities. The producer’s question: How soon must the well return to profitability? The answer in BP American Production Company v. Laddex, Ltd....more
Another Louisiana court has ruled that the Subsequent Purchaser Rule applies to damages following a mineral lease. In Bundrick v. Anadarko Petroleum Corp. it is the 3rd Circuit.
An owner of property...more
The owner of 33 BCF of gas cant’ just stuff it in his pocket and move it county-to-county to avoid taxes. So, the question: Is gas in storage subject to ad valorem tax on personal property? The Harris County Appraisal...more
Everybody from the well site to the board room has an opinion about when oil prices will “rebound”. Rather than an opinion, we have a question: How do I collect my money while we’re waiting?
This post is a refresher for...more
Lipsky was not Range’s lessor, therefor I know nothing about the case. Surely, this person lives in my house, where I enjoy a long history of knowing nothing about anything. (Memo to self: check progress on subpoena for kids’...more
May a court “draw rational inferences from circumstantial evidence” when determining if a plaintiff has met its burden in a suit in which the defendant has invoked the Texas Citizens Participation Act . That was the question...more
The Texas legislature is still busy on energy issues. Is that good or bad? It depends on your situation; oil patch thieves won’t like it.
Wind Energy -
Senate Bill 931 would blow away the Renewable Portfolio...more
The Texas legislature has been busy on energy.
House Bill 40, similar to House Bills 539 and 540, steamrolled through the House of Representatives last week by a vote of 122 to 18. Reminds us of A L pitchers not...more
I know contract writers who like to state terms, such as property descriptions, several different ways. If you just have to over-describe, at least be careful, and at least be sure the descriptions are consistent....more
Whoa! I didn’t see this one coming. Pennsylvania lessees are not entitled to an equitable extension of the primary term of an oil and gas lease in the face of a legal challenge to the validity of the lease....more