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 Ammonite Oil & Gas Corp. v. R.R. Comm’n of Tex., the Texas Supreme Court held that the Railroad Commission (the “RRC”) did not abuse its discretion in denying a “muscle in” application under the Texas Mineral Interest...more
This article focuses on the state of Texas law regarding wellbore rights and various related issues raised by transactions involving such rights (and other similar lease severance issues) and provides some practical tips to...more
Let’s assume you own 165 acres in Tioga County. In 2019, you sign a new oil and gas lease with ABC Drilling. You negotiate an 18% net royalty. The royalty clause, however, requires ABC Drilling to calculate the royalty on...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
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
True Oil LLC v. BLM is a recent opinion by the Wyoming Federal District Court, based on the appeal of an order out of the BLM Rawlins Field Office. At issue was whether a fee surface owner can grant a subsurface easement...more
A company in New York is attempting to secure leases to allow it to produce oil and gas and to use the leased land for a carbon dioxide injection program for long-term storage. Does this herald a new type of development that...more
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
In Cromwell v. Anadarko E&P Onshore, LLC, 676 S.W. 3d 860 (Tex. App. 2023), the Texas Court of Appeals confirmed the automatic termination of an oil and gas lease, and simultaneously rejected the argument that a forfeiture...more
The modern producing gas well is a sophisticated and complex piece of equipment. The basic well head itself consists of several meters, valves and other components, each of which is under constant stress and pressure. In...more
The recently filed Hobe Minerals Limited Liability Company v. Bonanza Creek Energy Operating Company, LLC, et al lawsuit in a Colorado trial court challenges whether intermittent cryptocurrency mining can maintain an oil and...more
Let’s assume you own 95 acres in Greene County, Pennsylvania. In 2019, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more
Davenport v. EOG Resources, Inc. is an appeal of a temporary injunction. The title tells you the result. Davenport owned four tracts comprising 5,000 acres in Webb County that were originally part of a larger tract...more
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
The United States District Court for the Western District of Pennsylvania’s recent decision in Bootes v. PPP Future Development, Inc., C.A. No. 22-154 (W.D.Pa. March 21, 2023) denying a gas company’s request to dismiss oil...more
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
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
Solar farm developers who do not enter into surface use agreements with Pennsylvania oil, gas and mineral owners (and their lessees) could create legal jeopardy for their solar farm projects. All surface developments in...more
This is a familiar yet troubling question. Imagine you own 135 acres in Washington County. You have received offers from several oil and gas drillers but have not yet signed a lease. Your neighbor, however, did sign a lease...more
On February 15, 2023, the Pennsylvania Supreme Court agreed to hear the appeal of PennEnergy Resources, LLC in the Dressler Family, LP v. PennEnergy Resources, LLC matter. The Pennsylvania Supreme Court’s review of this...more
An oil and gas lease with a “free gas” clause may be a valuable tool for landowners to push back against drillers’ inaccurate attempts to value gas at the “wellhead”. Prior to the advent of Marcellus Shale drilling, "free...more
As we have written about before, a troubling issue facing landowners in the Marcellus Shale region is the practice of retroactive pooling and unitization. Retroactive pooling and unitization occurs when a driller records an...more
On January 24, 2023, the U.S. District Court for the Middle District of Pennsylvania held that Act 85 of 2019, which permits drilling horizontal oil and gas wells across existing drilling units, is not unconstitutional....more
Let’s assume you own 125 acres in Greene County, Pennsylvania. A landman from XYZ Gas Co. approaches you about a new oil and gas lease. The lease purports to grant XYZ Gas Co. exclusive drilling rights to the Marcellus...more