News & Analysis as of

Mineral Leases

Houston Harbaugh, P.C.

Sixth Circuit Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on

Let’s assume you own 105 acres in Greene County, Pennsylvania. In 2020, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

McGinnis Lochridge

Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

McGinnis Lochridge on

In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

Holland & Knight LLP

Texas Supreme Court: Subsurface Storage Rights Generally Belong to Surface, Not Mineral Owner

Holland & Knight LLP on

The Supreme Court of Texas has provided helpful guidance as to ownership of subsurface storage rights and pore space. In the recent holding in Myers-Woodward, LLC v. Underground Services Markham, LLC, the court held that "the...more

McGinnis Lochridge

Can a Production Sharing Agreement Override Surface Owner Consent? Hamilton v. ConocoPhillips Explored

McGinnis Lochridge on

A landowner’s failure to provide consent for surface use related to oil and gas operations does not necessarily preclude the lessee from conducting activities if the lease agreements allow surface use....more

Gray Reed

Operator Excused from Texas Relinquishment Act Claims

Gray Reed on

In Williams O & G Resources, LLC v. Diamondback Energy, Inc., a federal magistrate judge concluded that the Texas Relinquishment Act does not apply to public-school lands patented after 1931. The report and recommendation was...more

McGinnis Lochridge

Production Disputes and Estoppel Claims Cloud Lease Termination in Milam County

McGinnis Lochridge on

In this lease termination case (Pruett v. River Land Holdings, LLC, No. 03-22-00478-CV, 2024 WL 1745652, at *1 [Tex. App.—Austin Apr. 24, 2024, no pet.]), the Austin Court of Appeals was tasked with examining a cessation of...more

Pillsbury - Gravel2Gavel Construction & Real...

From Shale to Salt: Texas Supreme Court Applies Uniform Rule for Ownership of Subsurface Caverns

In a closely watched opinion issued on May 16, 2025, the Texas Supreme Court in Myers-Woodward, LLC v. Undergrounds Services Markham, LLC, — S.W.3d —, No. 22-0878, 2025 WL 1415892 (Tex. May 16, 2025) resolved a long-uncertain...more

Gray Reed

Who Owns the Subsurface Pore Space in Texas?

Gray Reed on

In a word, the surface estate owner. If that’s all the learning you are up for today, proceed directly to the musical interludes. If you want to know why the Supreme Court of Texas had to say this again, read on....more

Baker Botts L.L.P.

Write it Down or Forever Hold Your Peace: Texas Supreme Court Rejects Fraud Claims Based on Oral Representations in Mineral Deals

Baker Botts L.L.P. on

On Friday, May 9th, the Supreme Court of Texas addressed important issues regarding the enforcement of written contractual representations in its per curiam opinion styled Roxo Energy Co., LLC et al. v. Baxsto, LLC, ---...more

Holland & Knight LLP

Interior Department Streamlines Oil and Gas Leasing Process on Public Lands

Holland & Knight LLP on

In a significant policy shift, the U.S. Department of the Interior announced a Bureau of Land Management (BLM) policy update designed to expedite the oil and gas leasing process on public lands. Through a newly issued...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

Seyfarth Shaw LLP

Tariff Turbulence: Navigating Force Majeure Risks in Texas Oil and Gas Contracts

Seyfarth Shaw LLP on

Upstream oil and gas producers and oilfield service companies are facing new uncertainties from recently imposed federal tariffs. In early 2025, the US expanded tariffs on a broad range of imports, suddenly increasing costs...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

Gray Reed

Bankruptcy Court Blocks GLO’s State Lease Termination

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In In re Pearl Resources LLC, a Houston bankruptcy court rejected the Texas General Land Office’s attempt to partially terminate state oil and gas leases in Pecos County, despite finding the operator had breached offset well...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

Vorys, Sater, Seymour and Pease LLP

Supreme Court of Ohio Dismisses Appeal Seeking to End Senterra’s “Rolling Analysis”

In Senterra Ltd. v. Winland, 2019-Ohio-4387, Ohio’s Seventh District Court of Appeals held that an examiner, after identifying the root of title and finding that an exception to marketable record title applies, should review...more

Vorys, Sater, Seymour and Pease LLP

U.S. Court of Appeals Holds Trial Court Erred in Granting Preliminary Injunction Without Finding Plaintiff Would Suffer...

This past week, in EOG Resources, Inc. v. Lucky Land Management, LLC, 2025 U.S. App. LEXIS 8738, the U.S. Court of Appeals for the Sixth Circuit reversed the decision of the district court granting a preliminary injunction...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

McGinnis Lochridge

Who Can Enforce Surface Provisions in an OGL?

McGinnis Lochridge on

Unitex WI, LLC v. CT Land & Cattle Co., LLC, No. 07-23-00390-CV, 2024 WL 3249338 (Tex. App.—Amarillo June 28, 2024, pet. filed)...more

Gray Reed

NPRI Plaintiff Survives Affirmative Defenses

Gray Reed on

Boren Descendants et al v. Fasken Oil and Ranch, LTD, offers something to talk about beyond interpretation of the fixed-or-floating NPRI question.  At issue was this reservation, expressed as a double fraction, in a 1933...more

Houston Harbaugh, P.C.

Ohio Appeals Court Rules that Horizontal Shale Well Was “On” the Leased Premises

Houston Harbaugh, P.C. on

Let’s assume you own a 175 acre farm in Washington County. Your grandfather acquired the farm back in 1948 from Farmer Brown (the “1948 Deed”). Your grandfather always said that he bought both the surface and oil and gas. In...more

Gray Reed

Ratifications, Stipulations, and Fixed vs. Floating Royalty Interests

Gray Reed on

After four stops at the lower courts, Kenneth Hahn v. ConocoPhillips has been resolved by the Supreme Court of Texas. The Court opined on the effect of two instruments often used to clarify land titles in Texas: ...more

Gray Reed

Texas Supreme Court Will Review Produced Water Case

Gray Reed on

Who owns produced water in Texas?  And what is produced water anyway – oil and gas waste and part of the mineral estate, or groundwater and part of the surface estate?  We may be closer to an answer to these questions now...more

Schwabe, Williamson & Wyatt PC

Trump Administration Seeks to “Unleash” Alaska’s “Extraordinary Resource Potential” ‎Through Directives to the ‎BLM

On the President’s first day in office, January 20, the White House released Executive Order 14153, titled “Unleashing Alaska’s Extraordinary Resource Potential” (the “Alaska EO”). The Alaska EO states that: The State of...more

Baker Donelson

ALTA Considers New Energy Project Endorsement

Baker Donelson on

The American Land Title Association (ALTA) is considering approval of a new Energy Project Endorsement for owner's and loan policies at its spring session. The endorsement (proposed as the ALTA 36.9) Energy Project – Minerals...more

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