News & Analysis as of

Commercial Leases Oil & Gas

Identifying and Addressing Environmental Issues in Petroleum Marketing Agreements (“Presentation”)

The Arkansas Oil Marketers Association Environmental Workshop was held on August 30th in Little Rock. I undertook a presentation titled: Identifying and Addressing Environmental Issues in Petroleum Marketing...more

Oil & Gas Rights and CMBS Servicing—Transfer Considerations

Question: The borrower pledged oil and gas rights related to the collateral property to the lender. The borrower has notified the servicer that it would like to sell these oil and gas rights. Can the lender approve the lease...more

Plain Language Prevails in Ohio: Oil and Gas Lease Remains Valid despite Failure to Pay Minimum Royalty Amount

by Blank Rome LLP on

Action Item: Oil and gas companies with leases in Ohio should review their lease language whenever challenged by a lessor as to lease validity. That language likely will determine the success of any claim. Ohio oil and gas...more

Oil And Gas Update For Week Ending 5/5/2017 – Attacks On Class Arbitration For Royalty Litigation In PA, TX Supremes Block Lease...

by Cozen O'Connor on

Oil prices based on the Brent Crude and West Texas Intermediate indices dropped significantly since our last report while natural gas spot prices rose slightly. The national rig count remains steadily climbing except that...more

Executive Order Charts New Path For Offshore Energy Development

by Beveridge & Diamond PC on

On April 28, 2017, the Trump administration issued an Executive Order entitled “Implementing an America-First Offshore Energy Strategy.” This EO calls for expanded oil and gas leasing in areas of the U.S. Outer Continental...more

Arguments for Class Arbitration with an Agreement That Doesn’t Mention It, Again Fail

by BakerHostetler on

The predicted demise of litigation over the availability of class arbitration has not taken place. And the new cases occur in many areas of the law. The most recent decision actually involves oil and gas leases rather than...more

Production-in-Paying-Quantities Analysis Confirmed

by Gray Reed & McGraw on

In BP America v. Laddex, Ltd. the Texas Supreme Court affirmed that in a lease termination case the trial court cannot limit the jury’s consideration of production in paying quantities to an arbitrary time period. The court...more

Texas Supreme Court Approves Top Lease of Reversionary Interest; Orders New Trial on Production in Paying Quantities

by BakerHostetler on

In BP America Production Co. v. Laddex, Ltd. (Case No. 15-0248), the Texas Supreme Court recently ruled that a top lease that is a conveyance of an interest in a lessor’s possibility of reverter does not violate the Rule...more

Outer Continental Shelf Leasing: BOEM Withdraws Controversial Sole Liability Orders

by King & Spalding on

On February 17, 2017, the Bureau of Ocean Energy Management (“BOEM”), which manages oil and gas leasing in the Outer Continental Shelf, announced that it is withdrawing previously-issued orders to sole liability property...more

Potential Changes to the Oil and Gas Lease Protection Package: Pennsylvania Oil and Gas Producers Need to Prepare for New...

by K&L Gates LLP on

The Pennsylvania legislature is actively considering new legislation that, if passed in its current form, would affect how both producers and non-operating joint venture partners report royalty information, and that would...more

News from Second and State

Weekly Wrap - The capitol was abuzz as the state legislature got down to business this first full week of the 2017-2018 legislative session. The House Committees were reorganized for the new term on Monday, and the next...more

BOEM Suspends Implementation of New Financial Assurance Requirements

by Baker Donelson on

The Bureau of Ocean Energy Management (BOEM) announced Friday, January 6, that it would suspend the implementation of the new financial assurance requirements relating to decommissioning obligations of lessees’ facilities on...more

Louisiana State and Federal Courts Split Over Parties Entitled to Reports Under La. R.S. 30:103.1

by Liskow & Lewis on

La. R.S. 30:103.1 requires operators or producers of oil and gas units created by the Louisiana Commissioner of Conservation to provide reports containing information related to well costs and production to owners of...more

Texas Supreme Court to Hear Case on “Capability of Production” Under Shut-In Clause

by BakerHostetler on

On Sept. 2, the Texas Supreme Court granted review in a case that may clarify when a shut-in well’s capacity for production in paying quantities is determined. In BP America Production Company v. Red Deer Resources, LLC, No....more

BOEM Unveils Tougher Guidelines for Supplemental Bonding on the US OCS

by Morgan Lewis on

BOEM Unveils Tougher Guidelines for Supplemental Bonding on the US OCS July 21, 2016 The new guidelines restrict the ability of a company to rely on the financial strength of co-lessees to avoid additional supplemental...more

Tightening the Timeline for Original Condition: the First Circuit Denies Writ from Ruling Applying Subsequent Purchaser Doctrine...

by Liskow & Lewis on

In the watershed Corbello decision, the Louisiana Supreme Court affirmed a $33 million award—the cost to restore property valued at $108,000 to its “original condition” after it was damaged by oil and gas operations.  If...more

Of Formal Offers and Multipliers: Court of Appeal Explains Costs Consequences in Key Oil and Gas Decision

In Stewart Estate v. TAQA North Ltd, (Decision) the Alberta Court of Appeal (Court) released its costs decision after a complex and lengthy appeal involving multiple appellants and respondents involved in a dispute regarding...more

When Contract is Silent, Accommodation Doctrine Applies to Water Rights Disputes

A case that has been closely followed by oil and gas and other interests which involves groundwater disputes has now been decided by the Texas Supreme Court. In Coyote Lake Ranch, LLC, v. The City of Lubbock, decided on May...more

Another Washout Case

by Locke Lord LLP on

The El Paso Court of Appeals recently continued the trend of Texas courts to allow washouts unless strictly forbidden by agreement. Anadarko Petroleum Corp. v. TRO-X, L.P., 031816 TXCA8, 08-15-00158, March 18, 2016....more

PA Opinion Reassures Stakeholders That Estoppel By Deed Applies to Oil and Gas Leases

by McGuireWoods LLP on

The Supreme Court of Pennsylvania has recently confirmed that the doctrine of estoppel by deed applies to oil and gas leases and does not require detrimental reliance. See Shedden v. Anadarko, No. 103 MAP 2014, --- Pa. ---...more

Pennsylvania Court: Sublease of Production Rights Does Not Sever “Dual-Purpose” Oil and Gas Leases

by McGuireWoods LLP on

In a published opinion, the Pennsylvania Superior Court ruled that utilization of the subject land for gas storage held production rights under a “dual-purpose” lease providing for both storage and production. See Loughman v....more

The Best Protection: Safeguards in Purchasing Distressed Oil and Gas Assets

In the current environment of depressed prices for oil, natural gas and related liquids, oil and gas wells, leases and properties are coming on to the market for sale. These assets typically are made available through either...more

Not So Fast My Friend: Implied Covenant to Develop and Non-Apportionment Subdivision Tracts

I can acquire a 2,000-acre lease in Ritchie County, West Virginia, held by production from one well, drilled in 1905. I can acquire a 100-acre lease with an affidavit of nonproduction from an individual who has owned...more

Ohio Supreme Court: Form Oil and Gas Lease Not Void as Against Public Policy

by McGuireWoods LLP on

Earlier this week, in an unsurprising but nevertheless meaningful decision, the Ohio Supreme Court unanimously ruled that the standard form oil and gas lease at issue was not “perpetual,” and thus was not void as against...more

Fourth Circuit Joins Courts in Pennsylvania and Ohio in Holding that Dual Purpose Oil and Gas Lease Is Not Severable

by McGuireWoods LLP on

As we have often reported, landowners’ efforts to evade the plain terms of “dual purpose” leases, providing for both production and natural gas storage, have almost universally failed. Most recently, on December 28, 2015, the...more

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