Oil & Gas Leases

News & Analysis as of

Pennsylvania Court: Using Property for Gas Storage Holds Production Rights Under “Dual Purpose” Leases

A recent trial victory for Range Resources – Appalachia LLC and Columbia Energy Ventures LLC (CEV) fills gaps left by the prior leading decisions on “dual purpose” storage and production leases, and cements the rights of...more

Harrison Decision: Cabot Oil Denied Equitable Extension of Oil and Gas Lease

The decision marks another departure by the Pennsylvania Supreme Court from “mainstream” oil and gas jurisprudence. On February 17, the Pennsylvania Supreme Court (the Court) unanimously ruled that state law does not...more

The Early Bird Catches the Worm: A Lesson in Submitting Drilling Applications Early to Avoid Expiration of Federal Oil and Gas...

As many of you know, permitting delays are not only frustrating but can have real consequences for project applicants with contractual deadlines. In the case of a federal oil and gas lease, operators should be mindful of the...more

Consider The Retained Acreage Clause

Have you ever wondered about the original purpose of the retained acreage clause? According to Professor Kramer, it was “to prevent the lessee from losing those portions of a lease that had productive wells thereon if the...more

DOI Proposes Overhaul Of Federal And Indian Mineral Lease Royalty Valuation Standards

On January 6, 2015, the Department of the Interior’s Office of Natural Resources Revenue (“ONRR”) issued a proposed regulation that would substantially modify existing regulations in 30 C.F.R. Part 1206 for the valuation for...more

OCS Operators and Lenders Beware - Comment Period Ending on BOEM Risk Management, Financial Assurance and Loss Prevention Notice...

Monday, November 17, 2014, is the last day to provide comments to the Bureau of Ocean Energy Management (BOEM) in connection with its Advance Notice of Proposed Rulemaking (ANPR) with respect to risk management, financial...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

“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

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

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

Federal Court Holds that an Eastern Ohio Oil and Gas Lease Expired before Drilling in a Potentially Costly Ruling

In a recent case, Cameron v. Hess Corporation, Case No. 2:12-CV-00168 (September 24, 2013), the United States District Court for the Southern District of Ohio held that an eastern Ohio oil and gas lease entered into by Hess...more

Reseeding With Native Grasses After Operations – Keeping The Eagle Ford Native

How is a producer to deal with a demanding and formidable lessor’s insistence on stringent surface protection? How about demands from environmental groups and government entities?...more

Deduction Of Post-Production Costs From Gas Royalties – Another Lesson

Consider this while celebrating the resurrection of Big Tex: When a lease prohibits post-production cost deductions, can a lessee deduct those costs from a lessor’s royalty? Yes, says Potts v. Chesapeake Exploration, L.L.C. ...more

Oil and Gas Blog - Apparent Authority of a Landman, an Independent Contractor

In PanAmerican Operating, Inc. v. Maud Smith Estate, the Texas Court of Appeals for the Eight District addressed risks associated with working through independent landmen....more

When Is The Client Liable For The Acts Of The Independent Landman?

PanAmerican Operating Inc. v. Maud Smith Estate highlights the perils of working through independent landmen: maintaining enough control to be sure the work is done as you like it, but also wanting authority to disavow his...more

Legislative Update: Pa. Passes Oil and Gas Lease Act Share

On July 9, 2013, Governor Corbett signed the Oil and Gas Lease Act, Senate Bill No. 259 of 2013 (the "Act"), which amends Pennsylvania's Guaranteed Minimum Royalty Act....more

When Is A Notice-Of-Assignment Clause Not Effective?

A provision in a contract, no matter how unequivocal, does not always trump the law....more

Must An Oil And Gas Lessee Accommodate A Cattle Operation?

At Looper Reed we advise our clients that it is good business to accommodate your neighbor informally, if you can. Sometimes that leads to attempted world domination, as Chamberlain learned from Hitler in 1938....more

Oil And Gas Bills Passed By Texas Legislature

The regular session of the 2013 Texas Legislature is over and now it’s time to assess the damage. ...more

Fracking Stymied On Federal Lands In California

In an opinion with as many acronyms as the Dallas Cowboys have draft-pick detractors, a California federal court in Center For Biological Diversity v. Bureau of Land Management, held that the BLM violated the National...more

U.S. District Court Says BLM Must Address Environmental Impacts of Fracking - Court Finds Fracking Operations are Subject to NEPA...

In an order addressing hydraulic fracturing (fracking) on federal lands, the U.S. District Court for the Northern District of California ruled that the Bureau of Land Management (BLM) violated the National Environmental...more

CBD v. Salazar And The Way Forward For Fracking In Federal Minerals

On March 31, 2013, a magistrate judge with the U.S. District Court for the Northern District of California ruled that the U.S. Bureau of Land Management (BLM) violated the National Environmental Policy Act (NEPA) in issuing...more

BLM Fails to Review Fracking Impacts of Oil & Gas Leases in California

The U.S. District Court in San Jose recently found that the Bureau of Land Management (BLM) failed to adequately review the environmental impacts of fracking on four oil and gas leases it recently auctioned off in the...more

The 1956 Model Form JOA Does Not Apply To Future Leases

I learned to drive on an old, black, stick-shift, straight-six, no-radio, no-A/C automobile manufactured the year after the AAPL’s first Form 610 - Model Form Operating Agreement was created. The ’57 Chevy is now considered...more

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