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An Update on Recent Oil- and Gas-Related Decisions in Ohio

Due to increased drilling activity in the Utica shale formation, state and federal courts in Ohio and the 6th Circuit have recently issued decisions related to local drilling regulations, drilling permits, leasing, indemnity...more

Delay Strikes Down Another Plaintiff

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

Texas Supreme Court Argument Preview (10/14)

No. 13-0199, Steadfast Financial LLC v. Bradshaw - This is an oil & gas royalty dispute in which a non-participating royalty owner sued the owner of the executive right for failure to obtain a higher royalty interest in a new...more

What Does “Sprawling Litigation” Look Like?

It looks like what you’d expect: a bunch of litigants spending lots of time at a courthouse in Goliad, Texas, with no end in sight. After much ”sprawl” in Harkins v. Northshore Energy it came down to the meaning of this...more

Drilling at depth – proposed changes to subterranean rights

The government’s consultation on underground drilling access for the extraction of gas, oil and geothermal energy came to an end on 15 August 2014. The consultation sought views on the government’s proposal to introduce new...more

Should You Pay for Something You’re Not Getting? The Pennsylvania Supreme Court Will Take Up Shedden v. Anadarko E&P Company, L.P.

The Pennsylvania Supreme Court will consider whether an oil and gas lessee’s refusal to pay a “bonus” on acreage that the lease supposedly conveyed to it, but that the lessor did not own at the time of leasing and had not...more

CO2 is Good

In French vs. Occidental Permian, Ltd. the Texas Supreme Court held that costs associated with injection of carbon dioxide into a reservoir in a tertiary recovery operation were properly deducted from royalties. This...more

CO2 Separation Anxiety—Is the cost of separating CO2 from casinghead gas a “production” or “post-production” cost for purposes of...

In a recent decision, the Supreme Court of Texas concluded that the cost of removing carbon dioxide (“CO2”) from casinghead gas after completing enhanced oil recovery operations is a “post-production” cost, thus clarifying...more

Rumsfeld, Morrison and the Discovery Rule in Texas

In August 1999, Brock and Tipton signed a Farm and Ranch Contract by which Tipton would acquire 519 acres in Montague County. (Lots of Brocks were parties to the contracts and the suit. I refer to them as one for...more

Connecticut Expands Energy Sub-Metering

Up until very recently, only campgrounds and marinas could sub-meter electricity usage. This meant that landlords were prohibited by law from sub-metering electricity to their tenants. As a result, any allocation of...more

The Accommodation Doctrine Revisited: A Question of "Fairness to Both Parties"

As Texas holds tight to its position as the nation's number one oil and natural gas producing state, the Texas Supreme Court's decision to revisit the over forty-year-old accommodation doctrine, which requires oil and gas...more

“2 Sign or Not 2 Sign:” Which Statute of Frauds Governs Oil & Gas Leases?

In a recent decision, the Pennsylvania Superior Court resolved an open question of state law regarding which one of two alternative statutes of frauds apply to oil and gas leases, in the process making clear that for an oil...more

The Non-Binding Agreement – Louisiana Edition

No. In 2008 as the Haynesville Shale was being developed at breakneck speed, companies rushed to lease and landowners banded together in groups in order to obtain the best terms. Landowner Mr. Walsworth joined the “Go...more

Underground Drilling: Consultation on Proposal for Underground Access for the Extraction of Gas, Oil or Geothermal Energy

The UK government are currently inviting responses to the consultation paper issued in May into their proposals to introduce a statutory right of access to underground land (at a depth of 300 metres or below) in England in...more

B.C. Supreme Court Sets Aside B.C. Surface Rights Board Rent Review

In reasons released on May 30, 2014, the B.C. Supreme Court set aside the B.C. Surface Rights Board’s compensation award to a landowner in northern B.C. and remitted the case back to the Board for reconsideration: Progress...more

Mainebiz Real Estate Insider – Romancing the Stone: Will Shale Gas Extraction Sneak Under Maine’s Feet?

From 2001 to 2011, over a million leases were signed by American landowners that permit energy companies to drill for oil and natural gas on private lands. These leases burden land in states determined to have economically...more

UK Shale Exploitation: Securing Subsurface Access Rights

In February, King & Spalding was invited to participate in an access rights workshop run by UK oil and gas regulator, the Department for Energy & Climate Change ("DECC"). The purpose of the workshop was to invite...more

Hydraulic Fracturing Land Lease Negotiations - Energy Company and Landowner Rights

The objective of this presentation is to provide an overview of the main issues and documents related to the challenges confronting mineral owners in the negotiation of contracts with energy companies. In addition the paper...more

Tax Measures in the 2014 UK Budget

UK government continues to support growth and build on economic recovery. On 19 March, UK Chancellor of the Exchequer, George Osborne, released the UK’s 2014 budget. From a business tax perspective, the budget...more

Was The Royalty Reservation “Floating” Or “Fixed”?

The question in Graham v. Prochaska: Did the grantors in a 1950 Texas warranty deed reserve a “floating” 1/2 royalty interest or a “fixed” 1/16th royalty?...more

PA Tax Law News - February 2014

In This Issue: PA Governor's Budget Proposal Preserves Capital Stock/Franchise Tax Phase-out; Shopping Guides and Inserts; Documentation Requirements for Sales of Fuel Oil; Property Tax Notes; and PA Issues on Appeal -...more

Beware, The Stealthy Duhig Rule

Johnson v. Finkle, from North Dakota, centers around the long-standing but oft-forgotten headache that is the Duhig doctrine. If you aren’t familiar, you should be. ...more

Surface Owner’s Regulatory Taking Claim Denied

In Walton v. City of Midland, the surface owner of a 35 acre tract within the city limits of Midland, Texas, contended that a provision in a city permit for an oil or gas well was a regulatory taking because it required the...more

6th Circuit Backs Chesapeake In Ohio Gas Lease Fight

The Sixth Circuit Court of Appeals ruled last week that Ohio landowners do not have a contractual right to terminate their oil and gas leases with Chesapeake Exploration LLC based on Chesapeake’s failure to match third-party...more

Natural Gas Boom Fuels Requests for Partial Releases from Mortgage Liens

Residential lenders and servicers are continuing to see a larger impact from the natural gas boom, and it is not just from properties hosting drilling operations. More lenders are seeing increasing numbers of borrowers...more

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