Mineral Leases

News & Analysis as of

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

North Dakota Good Faith Purchasers: At What Point is Notice Relevant?

The Question - In order to be a good faith purchaser, a party must not have actual or constructive notice of another’s rights. Northern Oil and Gas v. Creighton asked, When should the determination of whether a party...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 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

BLM Agrees to Complete Hydraulic Fracturing EIS for Leases in California

A recent agreement between environmentalists and the Bureau of Land Management (BLM) may open the floodgates to challenges of the sufficiency of Environmental Assessments (EA) or Environmental Impact Statements (EIS) for oil...more

How Untimely Service Can Be Deadly To Your Takings Claim

If you ask ten attorneys what keeps them up at night, at least six of them will recount nightmares about missing a filing deadline. I know what you're thinking. How hard can it be? You just look in the Code, find the...more

Courts Address Important Questions About Allocation Wells in Texas

The relatively recent drilling of horizontal wells continues to challenge settled Texas oil and gas law in several significant respects. Most recently, Texas courts have been faced with two important issues: (1) the legality...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

Rural Nevada Anti-Fracking Group Seeks to Enjoin Oil and Gas Lease Sale

Reese River Basin Citizens Against Fracking filed a complaint in federal court on June 27, seeking to enjoin the United States Bureau of Land Management (BLM) from holding an oil and gas lease sale. The rural group is...more

Texas Supreme Court Holds Cost to Remove Carbon Dioxide Injected in Enhanced Recovery Operations Is Properly Deductible from...

On June 27, the Supreme Court of Texas issued an opinion in Marcia Fuller French, et al v. Occidental Permian Ltd., No 12-002 (Tex. June 27, 2014), a case closely followed by the oil and gas industry. In its unanimous...more

Texas Supreme Court weekly orders (6/14)

In its order list for June 20, 2014, the Texas Supreme Court issued opinions in eight cases and granted review in one case. In this post, I will summarize the opinions in four cases, and also describe the case in which the...more

Offshore Acres and Leases Up for Grabs in the Atlantic Coast and Gulf Region

As a part of President Obama’s Climate Action Plan to promote American leadership in renewable energy, and coupled with the Interior’s “Smart from the Start” wind energy initiative for the Atlantic Coast, the Interior has...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

6th Circuit Win in Oil and Gas Lease Dispute

On June 6, 2014, the Sixth Circuit affirmed the district court’s entry of summary judgment in favor of Chesapeake Appalachia, L.L.C. in Eastham v. Chesapeake Appalachia, L.L.C., Case No. 13-4233. This is the first appellate...more

What Is Required For Gas To Be A Marketable Product In Oklahoma?

This article discusses the case law in Oklahoma giving rise to the question of what is required for gas to be a marketable product, the differing view of royalty owners and producers on that question, the uncertainties under...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

Post-Production Issues and Oil & Gas Leases

So your oil and gas lease has now converted from the primary term to the secondary term – now what? There are several issues that a landowner or mineral interest owner should be aware of at this stage of the lease. ...more

Ninth Circuit Reverses NEPA Approval of an Oil and Gas Lease in the Chukchi Sea

The Bureau of Ocean Energy Management (BOEM) of the Department of Interior sought to lease approximately 30 million acres of federal land in the Chukchi Sea for oil and gas development, but, according to a recent decision by...more

“Houston, We May Have a Problem!” — Surface Owner Who Put up “Roadblock” to Oil Driller’s Use of Property to Service Wells in a...

The Texas Supreme Court’s anticipated ruling in the case of Key Operating Equipment Inc. v. Will Hegar and Loree Hegar could significantly impact the ability of oil and gas producers to gain access to wells that are part of...more

Default Notices and Freehold Leases: Take Two

There may be a sign that last year’s dire consequences for a freehold oil and gas lessee who does not quickly respond to a default notice by commencing legal proceedings may be moderating somewhat, at least in certain...more

Louisiana Court of Appeal Rejects Plaintiff's Attempt to Join Claims of Contamination of Separate Parcels with Different Lessees...

The Third Circuit Court of Appeal in Louisiana issued an opinion on December 11, 2013, that may have a profound impact on litigation related to contamination from historic oil and gas exploration and production operations in...more

Royalties from Horizontal Well Should Be Allocated Based on Productive Portion of Well, Not Its Entire Length

On December 20, 2013, the San Antonio Court of Appeals issued a decision concerning the proper construction of a contract used to allocate royalties from a horizontal well that traverses two separate properties. The decision,...more

Third Circuit Remands Marcellus Shale Case Based on the Class Action Fairness Act's Local Controversy Exception

The Third Circuit recently clarified the home state and local controversy exceptions to the Class Action Fairness Act (CAFA), remanding proceedings in a case involving Marcellus Shale oil and gas leases to a Pennsylvania...more

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