News & Analysis as of

Pipelines TX Supreme Court

Gray Reed

Well Operator Escapes Liability After Disposing of its Working Interest

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Does a former working-interest owner of a well bear continuing responsibility for a defective gas line despite having conveyed its ownership interest? The line was constructed by the former owner as operator of record, and it...more

Holland & Knight LLP

A Closer Look at Nettye Engler Energy, LP, v. BlueStone Natural Resources II, LLC

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The Supreme Court of Texas has once again tackled the heavily contested issue of postproduction costs in royalty calculations. In Nettye Engler Energy, LP, v. BlueStone Natural Resources II, LLC, No. 20-0639, the Court was...more

Gray Reed

Texas Supreme Court Clarifies Postproduction Cost Decision

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It was jurisprudential Groundhog Day as the Supreme Court of Texas handed down Nettye Engler Energy v. Bluestone Natural Resources, another in a series of postproduction cost disputes, only two days after Puxsutawney Phil...more

Alston & Bird

Is “Into the Pipeline” the Equivalent of a Wellhead Valuation? Not So Fast, Says Texas Supreme Court

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Our Oil & Gas Team parses a ruling from Texas that reminds courts to look at the entire contract, not just a favorite word or phrase. The parties disagreed about where along the pipeline royalty valuation should occur. The...more

Gray Reed

Texas Easement Not Modified By Email

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Copano Energy, LLC v. Stanley Bujnoch, Life Estate, et al. asked whether an enforceable easement had been established by email. The trial court and court of appeal said yes, holding in favor of  landowner the Bujnochs....more

Gray Reed

Texas Supreme Court Says Don’t Mess With a Written Contract

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It is no surprise to Texas Supreme Court watchers that in Energy Transfer Partners et al v. Enterprise Products Partners LP et al. the court rejected claims that the parties had created a partnership by actions that varied...more

Skadden, Arps, Slate, Meagher & Flom LLP

Texas High Court Lays Partnership Formation Questions to Rest

On Friday, January 31, 2020, the Supreme Court of Texas clarified the law of partnership formation in the closely watched case of Energy Transfer Partners, L.P. et al. v. Enterprise Products Partners, L.P. et al. The case...more

King & Spalding

Freedom of Contract Cited as the Reason for Texas Supreme Court's Affirmation of Court of Appeals Judgment in ETP v. Enterprise

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On January 31, 2020, the Texas Supreme Court (the “Court”) affirmed the 2017 judgment of the Dallas Court of Appeals that Texas law upholds the rights of contracting parties to agree not to be partners unless certain...more

Winstead PC

Texas Supreme Court Holds That  Parties Can Conclusively Agree That, As Between Themselves, No Partnership Will Exist Unless...

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In Energy Transfer Partners, L.P. v. Enter. Prods. Partners, L.P., one pipeline company sued another for breaching a duty of loyalty that allegedly arose out of a partnership to develop a pipeline. No. 17-0862, 2020 Tex....more

Porter Hedges LLP

Business Litigation Alert: "Texas Supreme Court Confirms - No Partnership By Ambush"

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In a case critical to Texas contract and partnership law, on January 31 the Texas Supreme Court confirmed that parties can negate the formation of a partnership through their contractual language. The Court affirmed an...more

Jackson Walker

In Major Partnership Decision, Texas Supreme Court Affirms That Businesses Can Contract for Conditions Precedent to Preclude the...

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Disputes often arise over whether parties have agreed to, or by their conduct they have, committed themselves to a transaction. On January 31, 2020, the Texas Supreme Court delivered its decision in Energy Transfer Partners,...more

Womble Bond Dickinson

When is a Deal a Deal? Texas Supreme Court Weighs in on Two Landmark Oil & Gas Cases

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Business contracts are often compared to marriages, and for good reason. Both imply a deep level of mutual commitment to the relationship. But at what point in the relationship do businesses say “I do,” and at what point may...more

Winstead PC

ETP v. Enterprise: Texas Partnership Created by Conduct — A Dog That Won’t Hunt

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Following Supreme Court arguments last month, the final chapter in the long-running legal battle between Energy Transfer Partners LP (“ETP”) and Enterprise Products Partners (“Enterprise”) is finally coming to an end. ETP is...more

A&O Shearman

Texas Supreme Court Agrees to Review Controversial Ruling Regarding Texas Partnerships

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On June 28, 2019, the Texas Supreme Court agreed to review a ruling from the Fifth Court of Appeals in Dallas in the case of Energy Transfer Partners LP et al. v. Enterprise Products Partners LP et al, No. 529 S.W.3d 531...more

Bracewell LLP

Texas Supreme Court Expands Upon the Rights of Oil and Gas Producers to Deduct Post-Production Costs in Burlington Resources Oil &...

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To the relief of oil and gas producers, the Texas Supreme Court ruled on March 1, 2019, in Burlington Resources Oil & Gas Company, L.P. v. Texas Crude Energy, LLC (No. 17-0266), that post-production costs were rightfully...more

Gray Reed

Texas Supreme Court Clarifies Hyder

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Burlington Resources Oil & Gas Company, LP. v. Texas Crude Energy, LLC et al is another chapter in the back-and-forth over deduction of post-production costs from royalty payments....more

Gray Reed

Local Taxation of Oil and Gas Activities Fails Again

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Local, often rural taxing authorities frequently look to out-of-towners to bear what the locals consider the outsiders’ fair share of the burdens of increased oil and gas activity. ...more

Pillsbury Winthrop Shaw Pittman LLP

The Texas Supreme Court Clarifies “Common Carrier” Status Criteria

Client Alert Takeaways Background This article is a supplement to our previous note discussing the regulatory regime for the transportation of CO2 across public and private land in the United States and the procurement of...more

Snell & Wilmer

Texas Supreme Court Rules Pipeline Can Take Land by Eminent Domain

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On January 6, the Texas Supreme Court ruled that the Denbury Green Pipeline-Texas LLC (“Denbury Green”) could take private property by eminent domain. In Denbury Green Pipeline-Texas LLC v. Texas Rice Land Partners Ltd., the...more

Gray Reed

It’s Now Easier To Be a Common Carrier Pipeline in Texas

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We now know what it takes to establish common carrier pipeline status in Texas. According to the Texas Supreme Court in Denbury Green Pipeline Texas LLC v. Texas Rice Land Partners Ltd., all that is required is a reasonable...more

Jackson Walker

Denbury v. Texas Rice "Texas Rice II": The Texas Supreme Court Affirms Common Carrier Status

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On Friday, January 6, 2017, the Texas Supreme Court issued its long-awaited decision in Denbury Green Pipeline-Texas v. Texas Rice Land Partners (“Texas Rice II”), reversing the 9th Court of Appeals and reinstating the trial...more

Gray Reed

Contracts – It’s More About the Drafting Than the Suing

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It’s been said that your most important decisions are made when you write your contract, not when you have to sue on it. Kachina Pipeline Company v. Lillis agrees. In a gas-purchase agreement, can the pipeline operator...more

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