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
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
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
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
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
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
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
Assignments of interests in oil and gas leases often incorporate by reference outside agreements. This can be a helpful shortcut to avoid including every lengthy and confidential provision that was drafted during negotiations...more
Let’s assume you inherited a 150 acre farm in Lycoming County that has been owned by your family since 1909. In 2020, you are approached by ABC Drilling about a new oil and gas lease for the farm. You retain counsel and...more
In ConocoPhillips Co. v. Hahn, the Supreme Court of Texas addressed whether a “fixed” nonparticipating royalty interest (“NPRI”) was later converted to a “floating” NPRI. The court weighed two possible means of this...more
As we approach the 20th anniversary of the Marcellus Shale play, one issue remains constant: the ongoing debate over the deduction of post-production costs. Landowners all across Pennsylvania have spent countless hours...more
Let’s assume you own a 135 acre farm in Tioga County, Pennsylvania. In 2020, you negotiate a new oil and gas lease with XYZ Drilling Company. During the negotiations, you insist on a cost free, no deduction royalty of 17%. ...more
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
On September 6, 2024, the United States District Court for the Middle District of Pennsylvania denied dueling summary judgment motions concerning the interpretation of a royalty provision in Chambers v. Equinor USA Onshore...more
In Self v. BPX Operating, a case with significant implications for Louisiana operators and royalty owners, the Supreme Court of Louisiana ruled that the doctrine of negotiorum gestio in La. Civil Code art. 2292 does not allow...more
In Koch v. David Fam. Oil & Gas Ints. P’Ship, the Court of Appeals of New Mexico held that the grantee in a deed of distribution executed by the foreign personal representative of an estate can be a bona fide purchaser in the...more
In its May 22, 2024 non-precedential memorandum decision in Frye v. Penn View Exploration, Inc., 919 WDA 2023 (Pa. Super. Ct. May 22, 2024), the Pennsylvania Superior Court found that an oil and gas lease’s shut-in royalty...more
t is well established that forced pooling under Oklahoma law is done on a “unit-wide basis rather than on an individual wellbore basis.” However, never has it been the case that an election made under one forced pooling order...more
A division order is a statement executed by all owners of interests in an oil and gas well. The division order’s essential purpose is to “authorize and direct to whom and in what proportion to distribute” proceeds from the...more
Since the early 1900’s, your family has owned a 105 acre farm in Greene County, Pennsylvania. In 2024, you and your siblings sign an oil and gas lease with XYZ Drilling Company. The language in the lease states that it...more
A troubling and confusing issue here in Pennsylvania concerns the ownership of oil and gas rights under roads and highways. For example, let’s assume Farmer Joe owned 115 acres in Greene County. In 1981, Farmer Joe sells...more
Two months in court, 1,700 miles from home, $100 million at stake. In this edition of V&E+, Vinson & Elkins partners Jim Thompson, Nick Shum, and Stephanie Noble share their story of a marathon trial — and how they emerged...more
Although historically viewed as a waste, produced water that comes to the surface as part of the oil and gas production stream now potentially has value. Produced water can be recycled and reused as part of hydraulic...more
In Powell v. Statoil Oil & Gas LP, the North Dakota Supreme Court found that failure to properly notify a suspended royalty owner of an alleged title defect may allow for statutory interest under North Dakota’s “Suspense...more
The calculation of production royalties and the deduction of post-production costs remains a troubling issue for Pennsylvania landowners. But there is another frustrating and often confusing royalty-related issue which can,...more