We recently discussed failure to produce in paying quantities. Another decision involving the same lessee had a different result. Why? The question in both cases was whether the well was capable of producing in paying...more
The Department of the Interior’s Office of Natural Resources Revenue (“ONRR”) announced that it has issued a $6.9 million civil penalty to High Plains Gas, Inc., for failure to submit production reports for numerous federal...more
On June 25, 2015, the United States Court of Appeals for the Third Circuit affirmed the District Court for the Middle District of Pennsylvania’s prior entry of summary judgment in favor of the lessor plaintiffs on the...more
MINERALS EXPLORATION AND MINING:
Minerals exploration and mining is a very important industry in Australia. Australia has significant reserves of minerals including iron ore, coal, gas, uranium, nickel, gold and rare...more
One consequence of falling oil prices is leases that cease to produce in paying quantities. The producer’s question: How soon must the well return to profitability? The answer in BP American Production Company v. Laddex, Ltd....more
Another Louisiana court has ruled that the Subsequent Purchaser Rule applies to damages following a mineral lease. In Bundrick v. Anadarko Petroleum Corp. it is the 3rd Circuit.
An owner of property...more
The BLM is asking interested parties to comment on tracts available for oil and gas leasing in the National Petroleum Reserve Alaska (NPR-A) by June 29, 2015. The NPR-A encompasses 22.8 million acres on Alaska’s North Slope...more
Bankruptcy Court reinforces importance of parties’ intent in determining the nature of overriding royalty interests under state law.
On April 2, 2015, the United States Bankruptcy Court for the District of Delaware...more
The April 2015 edition of Pratt’s Energy Law Report features an article from ML Strategies’ Jordan Collins on the Department of the Interior’s Five Year Outer Continental Shelf Oil and Gas Leasing Program for 2017-2022....more
On March 31, 2015, the New York State Court of Appeals issued an opinion in the case of Walter R. Beardslee, et al. v. Inflection Energy, LLC, et al., interpreting the applicability of force majeure clauses to extend the...more
It is not uncommon for royalty disputes between mineral lessors and operators to increase as oil and natural gas prices decrease. Before mineral lessors go running to the courthouse in Colorado, however, and before operators...more
Whoa! I didn’t see this one coming. Pennsylvania lessees are not entitled to an equitable extension of the primary term of an oil and gas lease in the face of a legal challenge to the validity of the lease....more
“For distressed exploration and production (E&P) companies and their lenders, there can be many significant legal issues associated with restructuring,” according to Latham & Watkins partner Mitchell Seider.
What must a Louisiana lessee do to avoid statutory penalties for non-payment of royalty, and what must a royalty owner do to put the lessee on notice that royalties are not being paid? The answers are, more than the lessee...more
The Federal Energy Regulatory Commission (the Commission) issued an order on Thursday, March 19, 2015, refusing to allow the abandonment of certificated working gas capacity when the reason for the request was unrelated to...more
You are negotiating to take a big oil and gas lease. The run sheets show you are dealing with an executive right owner on behalf of himself and his NPRI owner. His proposed terms are odd: a lower-than-market royalty and a...more
The Court of Appeals for the Third Circuit confirmed that the Pennsylvania Landlord and Tenant Act is inapplicable to an agreement by a landowner authorizing the “lessee” to extract oil and gas lying beneath the property's...more
On March 6, 2015, the Texas Supreme Court decided a case involving the duties owed to the non-executive holder of a nonparticipating royalty interest by both the executive rights holder and the lessee that negotiated the...more
The duty owed by the executive right holder to its non-participating royalty interest holder in Texas, long haunted by the ghost of Clinton Manges, is again examined. From KCM Financial, et al. v. Bradshaw and its...more
In Wagner & Brown, Ltd. v. Sheppard, 282 S.W.3d 419 (Tex. 2008), the Texas Supreme Court held that the termination of Sheppard’s lease (Sheppard was the Lessor) did not terminate her participation in a unit into which her...more
It s been said that if you don’t ask for what you want you’ll get what you deserve. Mr. Hooks took that truism to heart.
Hooks v. Samson is about more than the discovery rule (See last week). Here are the other claims...more
Supreme Court of Pennsylvania Declines to Extend Primary Term of Oil and Gas Lease -
In Wayne Harrison, et al. v. Cabot Oil & Gas Corp., Case No. 75 MAP 2014 (Pa. Feb. 17, 2015), the Supreme Court of Pennsylvania...more
Last week, the Pennsylvania Supreme Court, on certification from the United States Court of Appeals for the Third Circuit, ruled that the primary term of an oil and gas lease would not be equitably tolled during the pendency...more
The Texas Supreme Court – that elephants’ graveyard of claims and causes of action – has sided with a lessor-plaintiff who relied on the discovery rule to defeat a limitations defense. For the many with low expectations when...more
The explosion of natural gas production in the Appalachian Basin in recent years has led to litigation involving landowners trying to get out of existing oil and gas leases to take advantage of the fierce competition among...more
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