Montgomery Trustee v. ES3 Minerals and Echo Minerals is another Texas fixed or floating royalty case. Before diving into the details, perhaps it’s best to describe the pattern the courts seem to fall into to resolve these...more
Maverick Natural Resources, LLC at al v. Glenn D. Cooper Oil & Gas, Inc. is for control freaks wherever you are … and for those of you who advise the aforesaid control freaks....more
In Carl v. Hillcorp Energy the Supreme Court of Texas addressed the relationship between the lessee’s use of gas off-premises under a free-use clause and the lessor’s burden to share post-production costs (PPCs) under the...more
Frontier Drilling, LLC v. XTO Energy, Inc. has the indicia of an inequitable result, but as I remind my wife every time she objects to what she deems to be an outrageous jury verdict, we don’t know all the facts and the...more
Parkman v. W&T Offshore, Inc., et al features two contractors playing hot potato over liability for a company man’s alleged negligence. The takeaway: Write your Master Service Agreement to address your liability concerns, and...more
The outcome of a multimillion-dollar suit was in the hands of a jury of 12 good and honorable citizens. The question: Was a certain party an agent, consultant, contractor, or none of the above? One side wanted the jury to be...more
Foreshadowing a grim future for family weddings and funerals, Bell and Petsch v. Petch is a property dispute over five tracts of land in Gillespie County, Texas, in which siblings are the combatants. The events are less...more
As you negotiate your master service agreements are you confident that you know how insurance choices might affect indemnity obligations? Me neither. That’s why I turn to my Gray Reed partner Darin Brooks and his insurance...more
4/19/2023
/ Breach of Contract ,
Commercial Insurance Policies ,
Contract Disputes ,
Contract Terms ,
Denial of Insurance Coverage ,
Exxon Mobil ,
Indemnity ,
Insurance Claims ,
Master Service Agreement ,
National Union ,
Oil & Gas ,
Umbrella Policies ,
Workplace Injury
In Devon Energy Production Company, LP et al v. Sheppard et al, the Supreme Court of Texas construed what it referred to as a “bespoke” and “highly unique” royalty clause in several oil and gas leases to prohibit the...more
Just because parties agree that disputes over a contract will be subject to binding arbitration doesn’t mean there won’t be wrestling at the courthouse beforehand. In LLOG Exploration Offshore, LLC v. Samson Contour Energy...more
At issue in RKI Exploration and Production LLC v. AmeriFlow Energy Services LLC and Crescent Services, LLC. were two Master Service Agreements. RKI was the operator of a well in Loving County; AmeriFlow and Crescent were...more
7/21/2022
/ Contract Disputes ,
Contract Terms ,
Damages ,
Employees ,
Indemnity ,
Liability ,
Master Service Agreement ,
Negligence ,
Oil & Gas ,
Settlement Negotiations ,
Workplace Injury
Today we will skip our usual routine of explaining how court rulings on the question of the day might affect your interests. Instead we will discuss the fallout from abysmal document drafting. In Rosetta Resources Operating...more
A subcontractor’s mineral lien in Texas is invalid when, at the time the mineral owner receives notice of the lien affidavit, the mineral owner is not yet obligated to pay the contract price to its contractor. So says Pearl...more
Federal Insurance Company et al v. Select Energy Services LLC and Exco et al. is a reminder for negotiators of indemnity and defense obligations in oilfield contracts that choice of law is important. Ignore it when drafting...more
In resolving a dispute over post-production cost deductions from oil and gas royalties (PPC’s), the court in Shirlaine West Properties Ltd et al v. Jamestown Resources, LLC and Total E&P USA, Inc. opined that the case ” … is...more
In Emerald Land Corp. v. Trimont Energy (BL) LLC, a Louisiana federal court considered whether a lessee was required to remove flowlines buried beneath the surface and canal bottoms of property subject to mineral leases....more
Let’s begin with a question: Master service agreements (“MSA’s” in the trade), once agreed upon, often remain in force for years. As time passes and circumstances change, the parties amend, sometimes losing sight of the...more
Jatex Oil & Gas, L.P. v. Nadel & Gussman Permian, L.L.C. presents several teachable moments:
The Texas Property Owner Rule does not allow a non-expert testify on matters requiring expert testimony....more
9/25/2020
/ Contract Disputes ,
Contract Terms ,
Critical Infrastructure Sectors ,
Fair Market Value ,
Joint Operating Agreement ,
Mineral Extraction ,
Mineral Rights ,
Oil & Gas ,
Property Owners ,
Revenue ,
Tortious Interference
Lessons from BEPCO, L.P. v. RMTDC Operations, LLC d/b/a Total Energy Services. Operator BEPCO hired TOTAL for drilling consultant services under an MSA and hired Latshaw Drilling to drill a well on federal land in New...more
In Evans Resources, L.P., et al. v. Diamondback E&P, LLC, two agreements left the terms “constructed” and “utilized” undefined. If the terms had been defined would the outcome have been different? Maybe. Should parties define...more
7/21/2020
/ Breach of Contract ,
Condition Precedent ,
Contract Disputes ,
Contract Terms ,
Damages ,
Failure To Pay ,
Horizontal Wells ,
Judicial Foreclosure Process ,
Mineral Leases ,
Oil & Gas ,
Oil Wells ,
Surface Owner
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
3/10/2020
/ Appeals ,
Breach of Contract ,
Business Disputes ,
Confidentiality Agreements ,
Contract Disputes ,
Contract Negotiations ,
Contract Terms ,
Counterclaims ,
Energy Projects ,
Oil & Gas ,
Property Owners ,
Reversal ,
TX Supreme Court
It is no surprise to Texas Supreme Court watchers that in Energy Transfer Partners et al v. Enterprise Products Partners LP et al. the court rejected claims that the parties had created a partnership by actions that varied...more
2/11/2020
/ Business Disputes ,
Business Formation ,
Condition Precedent ,
Construction Project ,
Contract Disputes ,
Contract Negotiations ,
Contract Terms ,
Energy Projects ,
Oil & Gas ,
Partnership Agreements ,
Partnerships ,
Pipelines ,
TX Supreme Court
Suing a state and its public officials is difficult because of the doctrine of sovereign immunity. There are exceptions. State of Texas v. Signal Drilling, et al. presents several of them....more
Under Louisiana law, does the operator’s bad faith preclude recovery for the non-operator’s breach of a joint operating agreement if the operator caused the non-operator to breach the JOA but did not itself breach?...more
10/31/2019
/ Ambiguous ,
Bad Faith ,
Breach of Contract ,
Contract Disputes ,
Contract Interpretation ,
Contract Terms ,
Deepwater Horizon ,
Diversity Jurisdiction ,
Good Faith ,
Joint Operating Agreement ,
Offshore Drilling ,
Oil & Gas ,
Operating Agreements
Did the lessor’s deposit of royalty checks for production from a pooled unit that she contends was improper ratify the improper pooling? In Strickhausen v. Petrohawk et al, a jury will have to sort out the answer....more