News & Analysis as of

Oil & Gas Energy Sector Mineral Leases

Houston Harbaugh, P.C.

Landowners Should Ensure that Solar Farm Payments Retain Their Value Over Time

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Leases for solar energy facilities offer property owners the potential for a predictable, long-term revenue stream. But, because of the potential decades-long duration of a lease for solar energy facilities, things like...more

McGuireWoods LLP

Interesting — Texas Court Rules Unpaid Royalty Payments not Subject to Compound Interest

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Are unpaid royalty payments for oil-and-gas leases subject to simple or compound interest? Simple, the Texas Supreme Court said in Samson Exploration, LLC v. Bordages on June 7, 2024....more

Oliva Gibbs LLP

Muscled Out While “Muscling In”: The Role of Actual Drainage in MIPA

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In Ammonite Oil & Gas Corp. v. R.R. Comm’n of Tex., the Texas Supreme Court held that the Railroad Commission (the “RRC”) did not abuse its discretion in denying a “muscle in” application under the Texas Mineral Interest...more

Holland & Knight LLP

Energy Chairman Manchin's Permitting Bill Moves Through Committee in Careful Balancing Act

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After two years of continuous behind-the-scenes work, Sen. Joe Manchin (I-W.Va), who chairs the U.S. Senate Committee on Energy and Natural Resources, joined by Sen. John Barrasso (R-Wyo.), released S. 4753, the Energy...more

Gray Reed

How Courts Look at Fixed or Floating Royalty Disputes

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Montgomery Trustee v. ES3 Minerals and Echo Minerals is another Texas fixed or floating royalty case. Before diving into the details, perhaps it’s best to describe the pattern the courts seem to fall into to resolve these...more

McGuireWoods LLP

Producers May Subtract Gas Used to Power Post-Production Activities From “At-the-Well” Royalty Payments

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In Carl v. Hilcorp Energy Co., the Texas Supreme Court—addressing certified questions from the Fifth Circuit—held that producers may subtract the volume of gas powering post-production activities from “at-the-well” royalty...more

Locke Lord LLP

The Texas Supreme Court Holds Interest Must Be Simple Absent an Express, Clear, and Specific Provision for Compounding

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The Texas Supreme Court has clarified Texas law concerning how to calculate interest that is being paid pursuant to an agreement or statute. Samson Exploration, LLC v. Bordages, No. 22-0215, 2024 WL 2869049 (Tex. June 7,...more

Oliva Gibbs LLP

Navigating the New Frontier: Updates to Federal Onshore Oil and Gas Leasing Rules and Regulations

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The Fluid Mineral Leases and Leasing Process rule (FMLLP), which was announced by the Bureau of Land Management (BLM) on April 12, 2024, represents a significant update to the Federal onshore oil and gas leasing framework....more

Holland & Knight LLP

Interior Department Finalizes Rule to Limit Oil and Gas, Mineral Development in Alaska

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The U.S. Department of the Interior (Interior) released a final rule that will protect millions of acres of Alaskan wildness from the development of oil, gas and minerals. Interior's Bureau of Land Management (BLM), which...more

Steptoe & Johnson PLLC

District Court Dismisses Challenge to West Virginia Unitization Act

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On March 20, the U.S. District Court for the Northern District of West Virginia dismissed Sonda v. West Virginia Oil and Gas Conservation Commission for lack of standing. The lawsuit was brought by mineral interest owners...more

Houston Harbaugh, P.C.

North Dakota Supreme Rules That Driller Did Not Commence Reworking Operations In Timely Manner

Houston Harbaugh, P.C. on

The modern producing gas well is a sophisticated and complex piece of equipment. The basic well head itself consists of several meters, valves and other components, each of which is under constant stress and pressure. In...more

Blake, Cassels & Graydon LLP

Alberta : Rejet d’une tentative de tenir l’acheteur responsable des arriérés de redevances d’un vendeur après la clôture

Le 21 avril 2023, la Cour du Banc du Roi de l’Alberta (la « Cour ») a rendu sa décision dans l’affaire Terra Energy Corp (Re). Elle a rejeté la tentative du gouvernement de l’Alberta de recouvrer les arriérés de redevances...more

Blake, Cassels & Graydon LLP

Getting Closure: Alberta Court Rejects Attempt to Hold Purchaser Liable for a Seller’s Post-Closing

On April 21, 2023, the Court of King’s Bench of Alberta (Court) released its decision in Terra Energy Corp (Re). In this decision, the Court rejected the Government of Alberta’s attempt to recover oil and gas royalty arrears,...more

Houston Harbaugh, P.C.

Can Owners of Severed Oil and Gas Estates in Pennsylvania Lease Gas Storage Rights?

A dual purpose oil and gas lease transitions into its secondary term, and remains in its secondary term, if oil and gas is produced from the leasehold or if the leasehold is used for oil and gas storage. See, Smith v....more

Alston & Bird

Texas Legislature Creates Cause of Action for Bad-Faith Washout

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Our Oil & Gas Team reviews a new Texas law that changes the landscape for oil and gas operators that want to release leases subject to an overriding interest....more

Spilman Thomas & Battle, PLLC

Energy Industry Insights: V 7, Issue 1, 2023

“A controversial natural gas pipeline in West Virginia appears dead for now after it failed to make next year’s spending bill from Congress.” Why this is important: With apologies to Mark Twain, the reports of the...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Rules that Royalty Clause Referencing Both ‘Gross Proceeds’ and ‘At the Well’ Was Ambiguous

Houston Harbaugh, P.C. on

Let’s assume that you own 125 acres in Tioga County. In 2017, you negotiate a new oil and gas lease with XYZ Drilling. During the negotiations, you insist on a “gross royalty” which prohibits the deduction of...more

Foley & Lardner LLP

A “Pore” Explanation: What are Pore Spaces, How To Lease Them, and What To Do With Them?

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A common theme in current energy and climate literature and discussion is carbon capture, use, and sequestration (“CCUS”). Carbon dioxide (CO2) is a greenhouse gas (“GHG”), and while plants love it, its unique physical and...more

McDermott Will & Emery

Reasonably Prudent Operator or Good and Workmanlike Manner: Does Your Contract Have the Right Standard of Care?

McDermott Will & Emery on

The standard of care is an important provision in any operating, management or services agreement because it sets forth the expectations of the parties as to how the contract should be carried out. It also functions as the...more

Dorsey & Whitney LLP

Alternatives For Managing Distress In The Oil Patch

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According to the U.S. Energy Information Administration (EIA), the United States (U.S.) regular gasoline retail price as of the Monday before Labor Day fell to $2.22 per gallon this year, the lowest level for this time of...more

McGuireWoods LLP

Texas Appellate Court Analyzes Purchase and Sale Agreement Drafting and Terms

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The 11th Court of Appeals in Texas recently issued an opinion analyzing provisions of purchase and sale agreements (PSAs) governing working interests in oil and gas leases. In the opinion in Apollo Exploration, LLC v. Apache...more

Stinson LLP

North Dakota Supreme Court ruling address the century-old, standard-form oil royalty provision

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In a decision involving five separate oil royalty class actions, the North Dakota Supreme Court issued a ruling interpreting the century-old, standard-form oil royalty provision, and holding that it established a valuation...more

Skadden, Arps, Slate, Meagher & Flom LLP

Supreme Court of Texas Clarifies Allocation of Post-Production Costs in Oil and Gas Royalties in BlueStone Natural Resources II,...

On March 12, 2021, the Supreme Court of Texas issued a unanimous opinion that clarifies when a lessee is entitled to deduct post-production costs from royalties paid to the lessor under oil and gas leases. Construing a lease...more

Holland & Hart LLP

Risky Business: Uncertain Outcomes for Application of Bankruptcy Code 365

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Variations in How States Treat Oil & Gas Leases Make Dispositions Complicated - Ability of a debtor to assume, assign, or reject oil and gas “leases” under section 365 of the Bankruptcy Code - Section 365(a) of the...more

Akin Gump Strauss Hauer & Feld LLP

Rundown of Recent Developments in Covenant Running with the Land Tension

Concerns Raised by Sabine - The seminal decisions in Sabine Oil & Gas Corp. v. Nordheim Eagle Ford Gathering, LLC provided guidance on whether midstream and transportation providers can rely on the contractual dedications...more

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