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Oil & Gas Contract Drafting

Gray Reed

Clause to Protect Against Drainage in a Mineral Lease Deemed Ambiguous

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Today we will skip our usual routine of explaining how court rulings on the question of the day might affect your interests. Instead we will discuss the fallout from abysmal document drafting. In Rosetta Resources Operating...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

Texas Court Re-iterates the Need For Clearly Defined Contract Terms

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In Apollo Exploration, LLC v. Apache Corp., Texas’ 11th Court of Appeals analyzed several provisions of purchase and sale agreements in a complex oil and gas transaction and demonstrated a measured, text-centered approach to...more

Hogan Lovells

Contract and claim dispute management in the infrastructure and energy sector

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Importance of contract, claim and dispute management - Rapid urbanisation and growing demand mean that the construction industry is one of the largest industry sectors in the world, consistently poised to outpace the world...more

Gray Reed

Texas Supreme Court Deems Continuous Development Clause Ambiguous

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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

Terminological Inexactitude

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When Winston Churchill used this phrase in 1906 in his speech to the House of Commons, he probably did not have in mind the construction of language contained in a deed. Nevertheless, terminological inexactitude in drafting a...more

Akin Gump Strauss Hauer & Feld LLP

Practical Guide to Asian LNG Price Review: Part 2

There are currently substantial commercial incentives for Asian buyers to seek price adjustments under their long-term liquefied natural gas (LNG) contracts. In Part 1 of this series we outlined the elements of an effective...more

Gray Reed

Coronavirus and the Energy Industry: Drilling into Force Majeure Clauses

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Many oil and gas contracts – leases and JOAs for example – have force majeure clauses. The purpose is to allow contracting parties to suspend or terminate performance when certain circumstances arise that are beyond their...more

King & Spalding

Fifth Circuit Extends Doiron Test For Assigning Maritime-Contract Status To Contracts That Are Not Oilfield Services Contracts

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The U.S. Court of Appeals for the Fifth Circuit recently held that its two-question Doiron test for determining whether oilfield services contracts are maritime contracts also applies when evaluating the maritime-contract...more

Gray Reed

Lessor, Should You Cash That Royalty Check?

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Did the lessor’s deposit of royalty checks for production from a pooled unit that she contends was improper ratify the improper pooling? In Strickhausen v. Petrohawk et al, a jury will have to sort out the answer....more

Holland & Knight LLP

Mexico's Port Authority of Dos Bocas to Tender Oil and Gas Terminal, Two Facilities

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Tabasco is known for being one of Mexico's oil states, with a very developed industry and fields. As such, the federal Port Authority Dos Bocas (API Dos Bocas), located in the southeast of the Gulf of Mexico, has an...more

Holland & Knight LLP

Mexico's Port Authority of Chiapas Calls Tender for Oil and Gas Fluids Facility

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Most of the Mexican port infrastructure is assigned to Port Authority bodies, which are mainly state-owned corporations that run all aspects of operation and allocation of activities inside each port. Among other activities,...more

Gray Reed

An Indemnity Agreement Means What it Says

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We are reminded in Claybar v. Samson Exploration that a court will (if it’s doing its job) enforce an agreement according to what it actually says, not by that which one party or the other would have liked it to say or...more

King & Spalding

Court Issues New Test For Determining Whether An Offshore Oilfield Services Contract Constitutes A Maritime Contract

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Maritime laws developed for the blue-water shipping industry have always been an imperfect fit for the offshore oil and gas industry. While both industries face the perils of the sea, what constitutes a vessel and who does a...more

Gray Reed

Can Emails Establish an Easement in Texas?

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Email is the way we communicate these days. Whether emails create a contract is important if you’re thinking nothing short of a dead tree could ever bind anybody or, to the contrary, your goal is to establish an enforceable...more

Gray Reed

Lessons in Administering a Master Service Agreement

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Is condensate a contaminant? When it spills and burns a worker, yes. In Hiland Partners v. National Union Fire Insurance Company the operator, an additional insured under a contractor’s commercial general liability insurance...more

Gray Reed

Lessee Escapes Termination

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Escondido and Justapor. Next up on Tiny Desk Concert? Good guess, but no. They are the parties in Escondido v. Justapor, a Texas case presenting the perils of lease termination clauses and vaguely-drawn contracts....more

Holland & Knight LLP

Midstream Gathering Agreements Rejected in Sabine Oil & Gas Bankruptcy

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In a much anticipated ruling from the Bankruptcy Court for the Southern District of New York, Judge Shelley C. Chapman determined that midstream gathering agreements are subject to rejection as executory contracts, based on...more

Jackson Walker

Selected Drafting Issues In Midstream Contracts

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I will share a small secret – or perhaps, it is not a secret at all. As CLE presentations go, “drafting tip” presentations tend to be very practical in their orientation and are, therefore, more enjoyable and less stressful...more

Carlton Fields

Insurance is Big in Texas: In Deepwater Horizon Case, Texas Stretches a Policy’s Four Corners to Include Other Contracts

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Last month, in In re Deepwater Horizon, Relator, the Supreme Court of Texas applied a fundamental principle of insurance law to a case with enormous financial implications. The owner of the Deepwater Horizon drilling rig had...more

Cozen O'Connor

Texas Supreme Court Incorporates Limitations From An “Insured Contract” Into GL Policy

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In In re Deepwater Horizon, Cause No. 13-0670, Slip Op., Feb. 13, 2015, the Texas Supreme Court held that an allocation of liability found in an “insured contract” would determine the coverage provided to an additional...more

BakerHostetler

The Supreme Court of Texas Marries Contractual Limitations to Insurance Policies

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In a case that has been closely watched by the oil and gas industry and its insurers, the Supreme Court of Texas issued its opinion in In re Deepwater Horizon on February 13, 2015, and settled the debate concerning whether a...more

Beveridge & Diamond PC

Texas Supreme Court Rules Additional-Insured Coverage is Limited by Underlying Indemnification Agreement in In re Deepwater...

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In a much anticipated 8-1 decision, the Texas Supreme Court ruled Friday that BP is not entitled to additional-insured coverage in In re Deepwater Horizon, No. 13-0670 (Feb. 13, 2015)....more

Blank Rome LLP

$750,000,000 Missing Comma Comes Unhinged in BP’s Additional Insured Claim

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Action Item: Courts must consider whether an insurance policy incorporates other documents and the extent thereof in evaluating the existence of additional insured coverage. Parties should evaluate the policy and underlying...more

King & Spalding

Drilling Contracts – Avoiding Misunderstanding

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Drilling contracts are at the core of upstream operational agreements. They come in many forms and are negotiated to varying degrees depending on the value of the contract, level of risk involved, and existence of regional...more

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