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Contract Interpretation Contract Disputes Oil & Gas

Gray Reed

Uri Force Majeure Cases Still Percolating

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Thought you’d heard the last of force majuere cases arising from Winter Storm Uri? Think again. In Marathon Oil Company v. Koch Services LLC. the question was how to measure damages suffered by Koch for Marathon’s...more

McGinnis Lochridge

Affirmative Defenses Are Insufficient to Rebut the Van Dyke Presumption

McGinnis Lochridge on

Under Van Dyke, deeds with double-fraction royalty reservations referencing “1/8” are presumed to reserve a floating royalty interest unless clearly contradicted. Defenses like waiver, ratification, and limitations cannot...more

McGinnis Lochridge

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

McGinnis Lochridge on

A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more

McGinnis Lochridge

Texas Supreme Court Rules on Modification of NPRIs

McGinnis Lochridge on

In this recent case, the Texas Supreme Court resolved whether ratification of a lease or signing of a stipulation agreement could transform a fixed non-participating royalty interest (NPRI) into a floating NPRI....more

Gray Reed

Geophysicist’s Claims Turn on Definitions

Gray Reed on

Sewak v. Sutherland Energy Co. Ltd. is of interest for how the court defined terms commonly used in consulting contracts in the oil and gas industry, and how difficult it is to foresee all contingencies when negotiating a...more

Oliva Gibbs

Reservation or Limitation on Warranty? Navigating the Fine Line — Lessons from Valence Operating Co. v. Davidson

Oliva Gibbs on

In Valence Operating Co. v. Davidson1, the Court of Appeals for the Sixth Appellate District of Texas at Texarkana addressed whether the provision, “all Oil, Gas and other Minerals have been excepted and reserved by former...more

McGinnis Lochridge

Tackling Free-Use and At-The-Well Royalties

McGinnis Lochridge on

This lease royalty case involved a dispute over whether the lessee was permitted to deduct volumes of gas used off the premises to power post-production activities on other gas produced from the same well. Carl v. Hilcorp...more

Gray Reed

Texas Supreme Court Rules on “Bespoke” Add-Back Royalty Clause

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In Devon Energy Production Company, LP et al v. Sheppard et al, the Supreme Court of Texas construed what it referred to as a “bespoke” and “highly unique” royalty clause in several oil and gas leases to prohibit the...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

BCLP

Joint Operating Agreements: What have we learned from the High Court’s decision in TAQA v Rockrose

BCLP on

On Friday 17 January 2020, the High Court gave its judgment in the TAQA Bratani v Rockrose case (TAQA Bratani Ltd and others v. RockRose UKCS8 LLC [2020] EWHC 58 (Comm)). In this judgment, the Court held in favour of the...more

Bracewell LLP

JOAs: “Good Faith” and the implied qualification of express contractual powers

Bracewell LLP on

There have been a number of recent English Court decisions concerning implied obligations of good faith. In May 2019, we considered the potential impact of those decisions on joint operating agreements in the oil & gas...more

Gray Reed

Louisiana Operator’s Bad Faith Does Not Preclude Recovery

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Under Louisiana law, does the operator’s bad faith preclude recovery for the non-operator’s breach of a joint operating agreement if the operator caused the non-operator to breach the JOA but did not itself breach?...more

Bracewell LLP

Obligations of Good Faith in JOAs - The Impact of Recent Decisions on 'Relational Contracts'

Bracewell LLP on

In the international upstream oil and gas exploration and production industry, joint operating agreements (“JOAs”) are the key agreements which govern the terms upon which oil and gas companies regulate their upstream joint...more

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