What must a Louisiana lessee do to avoid statutory penalties for non-payment of royalty, and what must a royalty owner do to put the lessee on notice that royalties are not being paid? The answers are, more than the lessee...more
You are negotiating to take a big oil and gas lease. The run sheets show you are dealing with an executive right owner on behalf of himself and his NPRI owner. His proposed terms are odd: a lower-than-market royalty and a...more
The duty owed by the executive right holder to its non-participating royalty interest holder in Texas, long haunted by the ghost of Clinton Manges, is again examined. From KCM Financial, et al. v. Bradshaw and its...more
Is Denbury’s Green Pipeline a common carrier? That question is alive and well in Texas. In Texas Rice Land Partners Ltd. v. Denbury Green-Texas Pipeline, LLC, the Beaumont court of appeals reversed a summary judgment granted...more
It s been said that if you don’t ask for what you want you’ll get what you deserve. Mr. Hooks took that truism to heart.
Hooks v. Samson is about more than the discovery rule (See last week). Here are the other claims...more
The Texas Supreme Court – that elephants’ graveyard of claims and causes of action – has sided with a lessor-plaintiff who relied on the discovery rule to defeat a limitations defense. For the many with low expectations when...more
A Quiz -
You are in Louisiana and are described as having a “lesion beyond moiety”. What do you do?
A. Contact your primary care physician for an appointment...more
In Elm Ridge Exploration Co., LLC v. Engle we are reminded of a little-used provision in the 1989 Model Form Operating Agreement. Article VI.D.1 allows the operator to use its own equipment, but his charges may not exceed...more
Rep. Phil King has introduced two bills relating to fracking. House Bill 539 would add requirements for municipalities that propose petitions or ordinances that will affect oil and natural gas production. The Bill would...more
Have you ever wondered about the original purpose of the retained acreage clause? According to Professor Kramer, it was “to prevent the lessee from losing those portions of a lease that had productive wells thereon if the...more
In McBride v. Estis Well Service, LLC, the federal 5th Circuit Court of Appeals determined that punitive damages are not available to seamen under the Jones Act or under general maritime law. In those cases, recovery is...more
The box scores after election day showed frackers 4, anti’s 4. Courtesy of a gubernatorial grand-slam by Gov. Andrew Cuomo, hydraulic fracturing is now banned throughout the entire state of New York....more
Would this scenario keep you up at night? Your lease does not produce from May through August because a leak in a heater-treater makes it impossible or impractical to produce the well. Problems such as access to the site...more
In Lightning Oil Company v. Anadarko E&P Offshore, LLC, the surface and 1/6 of the minerals of the Chaparral Wildlife Management Area is owned by the Texas Parks and Wildlife Department. 5/6th of the minerals is owned by the...more
Cresson SWD Services, L.P. vs. Basic Energy Services, L.P. is a warning about the perils of an oral agreement for a risky downhole procedure. Cresson hired Basic to make improvements on a saltwater disposal well by deepening...more
Today is a grab-bag of topics, a pastiche if your college tuition was higher than mine.
When Will the Fat Lady Sing?
El Paso Marketing, LP v. Wolf Hollow I, L.P., involving a gas plant Supply Agreement,...more
In Olympia Minerals et al v. HS Resources, et al, the Louisiana Supreme Court addressed a decision we discussed in a February entry by affirming in part, reversing in part, amending in part and remanding (because why do one...more
Hydraulic fracturing bans had eight at-bats last Tuesday. Here are the results.
Denton, Texas -
My mother used to give us good advice. For example: Don’t lie … do your homework. Sabella v. Appalachian Development Corporation agrees with my mother.
Sabella bought minerals in 1997 under 66 acres in Warren...more
You might recall previous entries discussing the $2.9 million Dallas County verdict and judgment in Parr v. Aruba. Not all similar suits have the same result.
Michael and Myra Cerny sued Marathon Oil Corp. and Plains...more
As you probably know, the Denton City Council denied a petition signed by several thousand citizens to ban hydraulic fracturing within the city limits. The denial sent the question to the November 4 general election ballot. ...more
Why am I always reporting on plaintiffs who wait too long to file their lawsuit?
In the latest Texas case, Trahan v. Mettlen, the Trahans sued in 2010 on a 2006 warranty deed....more
Halloween is approaching, so let’s talk poltergeists – troublesome spirits that haunt a specific location. Where do they come from? In Quality Environmental Processes, Inc. v I.P. Petroleum Company, Inc., it was from a faulty...more
Why would anyone buy property without access to a public road? Because it seemed like a good idea at the time, I guess. And often it is, until things change, “things” often being new and unfriendly ownership of the...more
Gas Flaring -
According to Earthworks, gas flaring in the Bakken and Eagle Ford Shale is out of control and tons of greenhouse gases are being fired into the atmosphere; therefore, we should ban fracking. According to...more