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Mineral Leases Mineral Extraction

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

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

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

Gray Reed

Wind Farms: NIMBY Unless You Ask Permission

Gray Reed on

For the Osage Indian Tribe, it’s more like “IMBY if you pay me”.  In the latest interation of United States and Osage Minerals Council v. Osage Wind LLC et al the US District Court for the Eastern District of Oklahoma awarded...more

Gray Reed

Choice of Words Matters in an Override Assignment

Gray Reed on

The question in Rock River Minerals, LP and Carr v. v. Pioneer Natural Resources, et al.: Did an assignment of overriding royalty interests in Texas oil and gas leases include a depth limitation? No....more

Vinson & Elkins LLP

Balancing Act: Lithium Extraction and a New Era of Legal Issues

Vinson & Elkins LLP on

As the world moves toward cleaner energy, lithium has become crucial, powering electric vehicles and renewable-energy storage systems. With lithium demand set to increase more than 40-fold by 2040, the race to extract this...more

Bennett Jones LLP

Grassy Narrows First Nation Challenges Ontario’s Mining Claims Regime

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On July 10, 2024, Grassy Narrows First Nation (Grassy Narrows) launched a challenge against Ontario’s Mining Act (the Mining Act), claiming that the system for granting mining claims pursuant to the legislation (the Mining...more

Holland & Knight LLP

Interior Department Finalizes Rule to Limit Oil and Gas, Mineral Development in Alaska

Holland & Knight LLP on

The U.S. Department of the Interior (Interior) released a final rule that will protect millions of acres of Alaskan wildness from the development of oil, gas and minerals. Interior's Bureau of Land Management (BLM), which...more

Gray Reed

Louisiana Regulatory Taking Claim Defeated

Gray Reed on

Itching to sue the government for taking your property? Treme v. St. John the Baptist Parish Council is a reminder that you must have a property interest subject to being taken in order to have standing to sue for a...more

Gray Reed

Mineral Lessee’s H2S Damage Claim Rejected

Gray Reed on

Landowner and mineral owner (that includes you, lessee): Under ETC Texas Pipeline, Ltd. v. Ageron Energy, LLC, your right to sue for damages for tort or trespass could pass into history before you even know you have a claim....more

Gray Reed

Is a Merger a “Transfer of Leases”?

Gray Reed on

In Texas, no. Read on to learn why. In Nortex Minerals LP v. Blackbeard Operating LLC et al, the question was the meaning of this limited assignment provision in the “Alliance Leases”, oil and gas leases covering 27,000 acres...more

Houston Harbaugh, P.C.

The Colorado Supreme Court Declines to Adopt Commercial Discovery Rule

Houston Harbaugh, P.C. on

Let’s assume you own 136 acres in Tioga County. In 2011, you signed a new oil and gas lease with ABC Production (the “2011 Lease”). The 2011 Lease had a five-year primary term which expired in October 2016. In 2014, ABC...more

Gray Reed

Texas Court Considers Trespass by Produced Water Injection – Part 2

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See yesterday’s post on Iskandia Operating, LLC v. SWEPI, LP - SWEPI’s motion for summary judgment alleged that Iskandia presented no evidence of one or more elements of its trespass claim, noting that the Supreme Court of...more

Bennett Jones LLP

Redesigning British Columbia's Mineral Exploration System

Bennett Jones LLP on

On September 26, 2023, the British Columbia Supreme Court issued a ruling in Gitxaala v. British Columbia (Chief Gold Commissioner) that will affect the future of mining in British Columbia. In this case, the court found the...more

Gray Reed

Fifth Circuit Punts Postproduction Cost Question to Louisiana Supreme Court

Gray Reed on

The question in Self v, BPX Operating Company is how to balance the Louisiana Civil Code Art 2292 principle of negotiorum gestio against Louisiana’s conservation statutes....more

Gray Reed

Lessee: Don’t Covet Your Neighbor’s Operations

Gray Reed on

Can the Texas lessee perpetuate his oil and gas lease by “constructive participation” in wells drilled by another? Under the facts in Cromwell v. Anadarko E&P Onshore, LLC, the answer is no....more

Gray Reed

“Floating” Beats “Fixed ” in Texas Royalty Reservation

Gray Reed on

If you are scoring at home, count Permico Royalties LLC v. Barron Properties, Ltd., as a win for “floating” in the fixed-or-floating royalty battles. Permico, successor to grantors in a 1937 Deed for a tract in Ward County,...more

Gray Reed

Will the Fixed or Floating Suits Ever End?

Gray Reed on

Rhetorical Question: When will Texas be done with fixed/floating royalty cases such as Johnson et al v. Clifton et al? Rhetorical Answer: When scriveners of deeds that are open to eight conceivably plausible meanings...more

Gray Reed

Federal Court Distinguishes Devon v. Sheppard

Gray Reed on

Producers disappointed by the Supreme Court’s holding in Devon Energy Production v. Sheppard might have reason to feel vindicated. The question in HL Hawkins Jr., Inc. v. Capitan Energy Inc. et al. was whether producer...more

Hicks Johnson

Texas Supreme Court to Review Rejected Forced Pooling Applications

Hicks Johnson on

The Texas Supreme Court will review a state regulator’s rejection of 16 applications submitted by Ammonite Oil & Gas Corp. (“Ammonite”) to force pool its mineral estate with adjacent wells operated by EOG Resources Inc....more

Gray Reed

Supreme Court of Texas Tackles the Meaning of “Predecessors”

Gray Reed on

The plain, ordinary, and generally accepted meaning of a word doesn’t mean “anything goes”. It depends on context, says the Supreme Court of Texas in Finley Resources Inc. v.  Headington Royalty Inc., a dispute over the...more

Gray Reed

How to Lose Your Working Interest in 26 Annual Steps

Gray Reed on

Can a non-operating working interest in a Texas oil and gas lease be adversely possessed? The Amarillo Court of Appeals said yes in PBEX II, LLC v. Dorchester Minerals, L.P....more

Gray Reed

Texas Supreme Court Rules on Suspension of Proceeds of Oil and Gas Production

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Freeeport-McMoRan Oil and Gas, LLC and Ovintiv USA Inc. v. 1776 Energy Partners LLC  presented a recurring question faced by Texas oil and gas producers:  When can proceeds of production be withheld by the operator without...more

Gray Reed

A Day Made a Difference in This Purchase and Sale Agreement

Gray Reed on

And what a difference it was! In Apache Corp. v. Apollo Expl. LLC et al, Apache and others acquired an oil and gas lease on 100,000+ acres in the Texas Panhandle. The primary term was three years. The effective date was...more

Gray Reed

Lessee Can’t Satisfy Texas Supreme Court’s Force Majeure Requirements

Gray Reed on

Imagine these facts in a force majeure dispute (as presented in Point Energy Partners Permian LLC et al. v. MRC Permian Company). Lessee (MRC) invokes the force majeure provision of an oil and gas lease, asserting that...more

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