Well Drilling

News & Analysis as of

Control-of-Well Insurance: The Words of the Policy Control

Gemini Insurance Company at al v. Drilling Risk Management Inc construed control-of-well and redrill/extra-expense provisions in an insurance contract. The question and the rule - The question was whether an...more

Cabot Oil & Gas Continues to Fight $4.24 Million Federal Court Jury Verdict on Landowners’ Nuisance and Negligence Claims

After a recent round of post-trial motion briefing in Ely v. Cabot Oil & Gas Corp., Case No. 3:09-cv-02284-MCC (M.D. Pa.), it appears one of the most heavily publicized landowner lawsuits against an exploration and...more

When is a Joint Venture a Security?

Parvizian controlled Arcturus and Aschere, buying and selling interests in drilling projects. Each project had a managing venturor which supervised the project. Each venture included a confidential information memorandum,...more

Alberta announces new drilling incentive programs

On January 29, 2016, Alberta’s Royalty Review Panel (the “Panel”) issued its report (the “Report”) recommending a new modernized oil and gas royalty framework (the “New Framework”) that will apply to all new wells spud on or...more

Helis Oil & Gas Poised to Drill Well in St. Tammany Parish

On June 17, 2016, the Louisiana Supreme Court denied review of an appellate decision effectively terminating efforts by the St. Tammany Parish government and a group of citizens to block Helis Oil & Gas from drilling an...more

Significant developments in Canadian energy – for the month of June 2016

June 22, 2016 – In response to the Redwater decision (discussed below) and pending the outcome of an appeal, the Alberta Energy Regulator (AER) implemented interim changes to its regulatory measures “to minimize risks to...more

A Development in Trade-Secret Cases

The big trade-secret case, Southwestern Energy v. Berry-Helfand, has been worked over by the Texas Supreme Court. Highlights: - Lack of certainty in damages does not preclude recovery. - A “Flexible and...more

Amendment to Louisiana’s Risk Fee Statute That Allows For Notices After Spudding Is Awaiting Governor’s Signature

Effective August 1, 2016, unless vetoed by the Governor, the Louisiana Legislature will have amended the Risk Fee Statute, La. Rev. Stat. Ann. § 30:10, which governs unit operations in the absence of a joint operating...more

Forum Shopping Curtailed: Venue Limited to Parish Where Drilling Rig Was Lost

In a May 4, 2016 opinion, Louisiana’s Third Circuit Court of Appeal made clear that venue was not proper in Concordia Parish—where plaintiff filed suit for damages resulting from the loss of its drilling rig in LaSalle...more

Amendments to real estate legislation - Quarter 1 of 2016

Amendments to federal laws - Federal Law No. 431-FZ dated 30 December 2015 “On Geodesics, Cartography and Spatial Data and on Amendments to Certain Legislative Acts of the Russian Federation” The law under...more

Another Washout Case

The El Paso Court of Appeals recently continued the trend of Texas courts to allow washouts unless strictly forbidden by agreement. Anadarko Petroleum Corp. v. TRO-X, L.P., 031816 TXCA8, 08-15-00158, March 18, 2016....more

Moratorium on New Oil and Gas Operations Lifted in Adams County

On Tuesday, Adams County, Colorado, commissioners lifted a six-week moratorium on new oil and gas drilling operations in urban areas. The moratorium, previously approved by the county commissioners in early February following...more

What Happens to a Bundled Production Payment When a Lease Terminates?

Must a production payment out of four oil and gas leases be proportionately reduced if two of the leases expire because production ceased? In Apache Deepwater, LLC v. McDaniel Partners, Ltd., the Texas Supreme Court says yes....more

The Best Protection: Safeguards in Purchasing Distressed Oil and Gas Assets

In the current environment of depressed prices for oil, natural gas and related liquids, oil and gas wells, leases and properties are coming on to the market for sale. These assets typically are made available through either...more

Not So Fast My Friend: Implied Covenant to Develop and Non-Apportionment Subdivision Tracts

I can acquire a 2,000-acre lease in Ritchie County, West Virginia, held by production from one well, drilled in 1905. I can acquire a 100-acre lease with an affidavit of nonproduction from an individual who has owned...more

Appellate Review of Downhole Cases: The Supreme Court Repairs the Third Circuit’s Broken Manifest Error Standard in Hayes Fund for...

The Louisiana Supreme Court recently issued a decision in a downhole damages case, reversing the Third Circuit’s misguided application of the manifest error standard of review. Hayes Fund for the First United Methodist Church...more

Environmental Justice Lawsuit Accuses L.A. of Discriminatory Oil Permitting

On Friday, November 6, three environmental organizations filed suit against the City of Los Angeles in California Superior Court for the County of Los Angeles. The three groups, Youth for Environmental Justice, the Center for...more

Alaska Needs to Drill For More Oil — It’s All the Fault of Climate Change

According to the BBC, Alaska Governor Bill Walker has concluded that more drilling for oil is necessary in order for Alaska to have the funds necessary to pay to mitigate the costs of climate change in Alaska. Such costs...more

Pennsylvania Appeals Court Reverses Lower Court Decision and Allows a Natural Gas Well Project to Proceed in a Residential...

On September 9, 2015, Judge Mary Leavitt of the Commonwealth Court of Pennsylvania reversed the Court of Common Pleas of Lycoming County’s ruling, which had set aside the Board of Supervisors of Fairfield Township’s (the...more

Limitations of Liability: Do they work in the Alberta Oilpatch?

Let’s consider that contract you’re about to sign. Does it contain a limitation of liability? And if so, are those even enforceable? It’s been several years since we last wrote about limitations of liability and exclusion...more

UK Shale Gas - Going all out for Shale

As part of a package of measures to kick-start the shale gas industry in the UK, the UK government issued a joint Written Statement by DECC and DCLG on 16 September 2015 containing a new shale gas and oil policy. This policy...more

Texas Railroad Commission Finds Earthquakes in North Texas Not Caused by Drilling Operations

Update: On September 10, the Texas Railroad Commission concluded that these small earthquakes that occurred near Azle, Texas likely were not caused by drilling operations conducted by EnerVest Operating LLC. The Texas...more

You Own the Oil. Do You Own the Rock?

Riddle: What’s the difference between a hydrocarbon molecule and the underground structure which the molecule inhabits? Answer: In Texas, you can own one and not the other, according to Lightning Oil Co. v. Anadarko E&P...more

The Second Circuit Court of Appeals Affirms Ruling That New York State’s Moratorium on Hydraulic Fracturing Did Not Extend the...

New York’s 2010 moratorium on hydraulic fracturing, culminating in Governor Andrew Cuomo’s formal ban of the practice in his state on December 17, 2014, made many large waves in the political, legal, and public arenas, the...more

August 2015: Energy Litigation Update

Reserve Reports During the Oil Slump. The collapse of oil prices in the latter half of 2014 has led to SEC scrutiny of exploration and production (E&P) company compliance with rules regarding the calculation and reporting of...more

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