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Oil & Gas Business Disputes

Gray Reed

Supreme Court of Texas Decides Another Post-Production Cost Dispute

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In Carl v. Hillcorp Energy the Supreme Court of Texas addressed the relationship between the lessee’s use of gas off-premises under a free-use clause and the lessor’s burden to share post-production costs (PPCs) under the...more

Gray Reed

A Breach of Fiduciary Duty in the Oil Patch

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Antero Resources Corp. v. C & R Downhole Drilling, Inc. et al, proves again the extreme risk when one bites the hand that feeds him (shoutout to Greek poet Sappho, 600 BCE). Antero sued former employee Kawsak and his...more

Gray Reed

Is a Merger a “Transfer of Leases”?

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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

Gray Reed

PSA Well Permit Dispute Makes its Way to the Texas Supreme Court

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Contacted at his seaside villa, Captain Renault said he was shocked that Elsie and Adrian Opiela are asking the Texas Supreme Court to review questions surrounding the Railroad Commission’s approval of a drilling permit for a...more

Gray Reed

Texas Court Addresses Trespass by Produced Water Injection – Part 1

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Iskandia Operating Inc. v. SWEPI, LP d/b/a Shell Western E & P reversed summary judgment for the defendant in a subsurface trespass claim involving injection of large amounts of produced water....more

Gray Reed

Duhig Rule Claim is Unsuccessful

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The Duhig Rule is back, this time in Echols Minerals LLC, et al v. Green et al. Framing the discussion, Duhig v. Peavy Moore Lumber Company and Trial v. Dragon - In Duhig the grantor in a general warranty deed...more

Gray Reed

Fifth Circuit Punts Postproduction Cost Question to Louisiana Supreme Court

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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

How to Lose Your Working Interest in 26 Annual Steps

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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

Troutman Pepper

EDVA Judge Grants Rare Anti-Suit Injunction

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On May 17, in an apparent case of first impression in the Fourth Circuit, an Eastern District of Virginia (EDVA) judge granted an “anti-suit injunction,” barring a plaintiff from filing suit on a claim in any other...more

Gray Reed

More Force Majeure Fallout From Uri

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MIECO, LLC v. Pioneer Natural Resources presented a challenge to a force majeure defense in a dispute arising from Winter Storm Uri. The defense carried the day....more

Gray Reed

Texas Supreme Court Rules on “Bespoke” Add-Back Royalty Clause

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In Devon Energy Production Company, LP et al v. Sheppard et al, the Supreme Court of Texas construed what it referred to as a “bespoke” and “highly unique” royalty clause in several oil and gas leases to prohibit the...more

Gray Reed

Reserved Royalty Interest is “Floating”

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Texas courts continue to address the “fixed or floating” non-participating royalty interest question. The El Paso Court of Appeals’ answer in Bridges v. Uhl et al. was floating, based on the language in that particular...more

Gray Reed

Long-Running Texas Boundary Dispute Continues

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Ellison v. Three Rivers Acquisition LLC et al., on remand from the Texas Supreme Court, is the third round of a boundary dispute between mineral lessees in Irion County.   For the history of Ms. Ellison’s odyssey from...more

Gray Reed

Waiting Too Long to Sue For a Working Interest is a Loser

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Delay in filing suit too often spells doom for the plaintiff, as we learn in Zadeck Succession et al v. Treme et al. Treme (as in the family collectively) claimed their father, Vandiver, was conveyed a 5% working...more

Gray Reed

Louisiana Royalty Owner Survives Challenge to Demand For Payment

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The question in Kim R. Smith Logging Inc. v. Indigo Minerals LLC  was whether a disgruntled Louisiana royalty owner sent its demand for unpaid royalties to the right party.  It turns out that it did....more

Gray Reed

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

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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

Beware Assignor: Own the Leases Before You Reserve the Override

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Let’s begin with a quiz. Armour purchases non-recourse mortgage notes, becoming a lienholder in 99 oil and gas leases and 13 wells; fails to record the transfer documents in the real property records; assigns the leases to...more

Gray Reed

Suit Over a Sand Pit Spawns Citizens Participation Act Claim

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Ark Sand Co., Inc. v. Bradley Demolition & Constr., LLC, et al has the appearance of a Hatfield and McCoy-grade grudge match. As often happens when litigation gets personal, the Texas Citizens Participation Act was invoked....more

Gray Reed

Louisiana Court Considers Texas and Louisiana Oilfield Anti-Indemnity Acts

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Federal Insurance Company et al v. Select Energy Services LLC and Exco et al. is a reminder for negotiators of indemnity and defense obligations in oilfield contracts that choice of law is important. Ignore it when drafting...more

Gray Reed

Addendum Prevails over Form … Again

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When the form contract says one thing and the addendum says another, which one would you expect to prevail?...more

Jones Day

Offshore Oil and Gas Field Decommissioning: Disputes and Other Challenges

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As offshore assets age, oil and gas companies face a wave of decommissioning obligations, with expenditures estimated to exceed US$200 billion in coming decades. Decommissioning is not simply demolition. It requires plugging...more

Dechert LLP

Dispute Resolution Trends in Asia for 2021

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Naturally, there will be disputes relating to COVID-19 and efforts to contain its spread. These will often be resolved through negotiation, particularly if the relevant contract clearly allocates the risk between the parties...more

Gray Reed

“No Obligation” Clause Dooms Oil and Gas Asset Bid

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In Chalker Energy Partners III LLC v. LeNorman Operating LLC, the Texas Supreme Court reaffirmed its belief in the sanctity of the written contract and the freedom of parties to negotiate and agree to contracts as they...more

Gray Reed

Texas Supreme Court Says Don’t Mess With a Written Contract

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It is no surprise to Texas Supreme Court watchers that in Energy Transfer Partners et al v. Enterprise Products Partners LP et al. the court rejected claims that the parties had created a partnership by actions that varied...more

Skadden, Arps, Slate, Meagher & Flom LLP

Texas High Court Lays Partnership Formation Questions to Rest

On Friday, January 31, 2020, the Supreme Court of Texas clarified the law of partnership formation in the closely watched case of Energy Transfer Partners, L.P. et al. v. Enterprise Products Partners, L.P. et al. The case...more

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