Energy Newsletter - May 2014


In This Issue:

- Important Case on Subsurface Trespass Pending before the Texas Supreme Court

- U.S. Fifth Circuit: The CWA and OPA Preempt State Law Claims for Pollution Incidents on the OCS

- Texas Supreme Court Issues Opinion with Implications for Power Purchase Agreements

- "Hydraulic Fracturing" Verdict in Texas State Court --Texas family recovers $3 million based on nuisance theory

- FERC Issues NOPR Regarding Coordination of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities

- Commingled Oil and Gas – Why allocation matters

- EU State aid rules and the UK's nuclear future

- Excerpt from Important Case on Subsurface Trespass Pending before the Texas Supreme Court:

Fluids associated with oil & gas production frequently move across subsurface property lines. For example, injected fracing fluids and disposed saltwater often move beyond the lease on which the particular injection well is situated. Generally, the Texas Supreme Court has held that when fluids are used in support of oil & gas recovery efforts, and those fluids cross a subsurface property line, no actionable trespass occurs. But the issue is not wholly settled. A case currently before the Texas Supreme Court—FPL Farming Ltd. v. Environmental Processing Systems—will hopefully bring more certainty to the issue. The stakes are high, because fluid injection is critical to oil & gas production, and there is frequently little the injector can do to keep the fluids from migrating underneath other properties.

Please see full newsletter below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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