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Securities Fraud – a Lesson for Promoters

We discussed SEC v. Arcturus et al last week and promised more. Here it is. Did defendants commit securities fraud? It doesn’t matter. Violations of Sections 5 of the Securities Act and 15.A of the Exchange Act are...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

Texas Supreme Court Clarifies Nuisance Law

Gardiner v. Crosstex North Texas Pipeline LLC, has brought clarity to Texas nuisance law. It took the Texas Supreme Court 54 pages; we have it in under 600 words. ...more

Wyoming Federal Court Strikes Down BLM Fracking Rule

U.S. District Court Judge Scott Skavdahl in State of Wyoming et al v. U.S. Department if Interior et al. struck down Bureau of Land Management regulations applying to hydraulic fracking on federal and Indian lands. He...more

Texas Comptroller Prevails in Tax Exemption Claim

A fight over the Texas sales tax drew industry-wide attention when the trial judge commented from the bench that he was inclined to exempt purchases of casing, tubing, pumps and related services from Texas state sales tax....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

The Model Form JOA in Hard Times (and Farewell, Rally Possum)

Good morning class. Welcome to an advanced course on what can go wrong with the Model Form just when you need it. FIRST CASE - Do you know where to file your UCC financing statement?...more

The Accommodation Doctrine Gets Its Feet Wet

Let’s start with a little background: Under the Accommodation Doctrine an oil and gas lessee has an implied right to use the land as reasonably necessary to produce and remove the minerals, but must exercise the right with...more

Lessee Escapes Termination

Escondido and Justapor. Next up on Tiny Desk Concert? Good guess, but no. They are the parties in Escondido v. Justapor, a Texas case presenting the perils of lease termination clauses and vaguely-drawn contracts....more

What’s To Know About the Defend Trade Secrets Act of 2016

Congress has passed the Defend Trade Secrets Act of 2016 and the president is expected to sign it into law. The DTSA allows suits in federal court for misappropriation of trade secrets. Before the DTSA, most litigants would...more

Neither a Will Nor Gift Deed?

This narrative about a daughter gone bad is for title examiners, landmen and moralists. Business development persons, skip straight to the lesson. The background Elvira owned a home and lived with Johnny. Elvira and...more

Here We Go Again: Fractional Royalty or Fraction of a Royalty?

“Blood may be thicker than water, but oil is thicker than both.”  J. R. Ewing. This family dispute among Ethel’s descendants arose when Ethel’s will employed double fractions in bequeathing royalty interests to her children....more

Proposed Methane Rules – Good or Bad?

Last week we discussed why the EPA’s plan to limit methane emissions from existing oil and gas facilities is good. Now we will consider reasons why the plan is not prudent....more

EPA Methane Rules Are Coming

“Remember, I can do anything to anybody”, deranged and murderous Roman emperor Caligula to his grandmother (Julia, widow of Tiberius and herself no stranger to things done to other people as and when they pleased)....more

When Joint Bidding Is Not Bid Rigging

Last week we discussed the pitfalls of joint bidding for oil and gas properties. We didn’t say you can’t do it. It’s like domestic life: There are ways you can tell your beloved that dress makes her look  …, well, never mind....more

The Peril in Joint Bidding for Properties

Wondering what was behind the Department of Justice indictment of the late Aubrey McClendon? The charge was conspiring to rig bids for oil and gas properties in Oklahoma. Read the McClendon indictment and engage in the parlor...more

Washing Out a Lessee By Email

Behold Mr. Clean. Even he can’t remove a pesky stain as skillfully as the landman who framed the conversation in a way that washed out a lessee. See Anadarko Petroleum Corporation v. TRO-X, LP Did the lessee retain any...more

State Well Permit Prevails Over Local Zoning – Again

The state laws of Louisiana regulating oil and gas exploration and production will trump local regulations. See St. Tammany Parish Government v. State of Louisiana, Office of Conservation. (Forgive us for that word that...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

Can the E&P Debtor Reject Gas Gathering Agreements in Bankruptcy?

What’s a sure way to destroy untold millions of dollars of energy infrastructure value built in reliance on the promise of reimbursement for huge capital investments necessary to move a producer’s product to market for the...more

Post-Production Deductions Revisited

Apparently unsatisfied with its analysis in Chesapeake Exploration v. Hyder, the Texas Supreme Court revisited its original opinion on an overriding royalty clause. The Hyders remain the winners. In effect, the court replaced...more

Railroad Commission Plugs the Wrong Well – Another Issue

“Back in the day, when the Yankees always won the World Series and you could name a park after a Confederate general, we didn’t need no written contract; a man’s word was his bond, … yadda, yadda, yadda”....more

Railroad Commission Not Off the Hook for Plugging the Wrong Well

“You are my friend, kind of.” Hush Puppy, as she stares down the Aurochs in Beasts of the Southern Wild. Is our “friend” the Texas Railroad Commission? Gulf Energy bought a package of offshore wells out of bankruptcy....more

What is an Adequate Description For a Mineral Lien?

Thanks to In re Reichmann Petroleum Corp., we know one that works in Texas: A lien affidavit attaching either a plat or a plat and a Texas Railroad Commission Form W-1 provides an adequate property description for a mineral...more

108 Year-Old Lease Survives

A baseball question: You’ve got men on late in the game; a base hit to the right side wins. Do you put the bat on the ball for a single or swing for the deep seats, risking the game-ending strikeout?...more

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