News & Analysis as of

Oil & Gas Ambiguous

Gray Reed

Oops! Sellers Didn’t Read The Mineral Deed Before Signing

Gray Reed on

Precious little legal analysis is required to grasp the lesson from Springbok Royalty Partners v. Cook.  No mode or manner of legal gymnastics is likely to save parties from the legal effect of a contract they didn’t bother...more

Gray Reed

Ambiguity Foils Right of Way Agreement

Gray Reed on

The central issue in the Texas case of Cook v. Cimarex Energy Co.: Did Cook grant Cimarex a right of way across Cook’s land to the location of two Cimarex wells. No he didn’t. Reversing the trial court, the court of appeals...more

Vinson & Elkins LLP

Texas Supreme Court Decision Impacts Royalty Payment Calculations: Postproduction Costs And Free-Use Clauses

Vinson & Elkins LLP on

Aided by terms of art and a long history of precedent, parties entering an oil and gas lease can generally choose from common, time-tested clauses to serve their needs. Yet we know from practice that royalties and allocating...more

Gray Reed

Texas Supreme Court Deems Continuous Development Clause Ambiguous

Gray Reed on

In Endeavor Energy Resources, L.P. v. Energen Resources Corp. et al. the Supreme Court of Texas construed a continuous development clause in an oil and gas lease covering 11,300 acres in Howard County. After the primary term,...more

Gray Reed

Contaminated Butane and Propane Creates Fight Over General Terms and Conditions

Gray Reed on

Enterprise Products Operating v. Trafigura, A G. asks, Who should pay when a “black blob” that had “the stench of a skunk” was left behind after $27 million worth of an odorless product is delivered from a ship?...more

Allen Matkins

The SEC's Extraction Distraction

Allen Matkins on

As noted yesterday, the Securities and Exchange Commission has proposed to amend Form SD to implement Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Because the proposed rules relate to...more

Gray Reed

Louisiana Operator’s Bad Faith Does Not Preclude Recovery

Gray Reed on

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

Gray Reed

NPRI Reservation Survives Rule Against Perpetuities

Gray Reed on

Recall the Battle of the Bastards: The heroic Lady Sansa and the duplicitous Lord Baelish gallop over the hill to save the foolish Jon Snow from the heinous Ramsey Bolton. In similar fashion, but without the malnourished...more

Gray Reed

Option Contract Ruling Reversed by Texas Supreme Court.

Gray Reed on

North Shore Energy v. Harkins interpreted an Option Agreement between landowners and a producer over a 400 acre tract. In football they would say the Texas Supreme Court pancaked the plaintiff. In the law, some would call it...more

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