News & Analysis as of

Oil & Gas Contract Terms

Gray Reed

Sole Discretion Not to Close Renders Texas Oil Deal Unenforceable

Gray Reed on

Maverick Natural Resources, LLC at al v. Glenn D. Cooper Oil & Gas, Inc. is for control freaks wherever you are … and for those of you who advise the aforesaid control freaks....more

Locke Lord LLP

The Texas Supreme Court Holds Interest Must Be Simple Absent an Express, Clear, and Specific Provision for Compounding

Locke Lord LLP on

The Texas Supreme Court has clarified Texas law concerning how to calculate interest that is being paid pursuant to an agreement or statute. Samson Exploration, LLC v. Bordages, No. 22-0215, 2024 WL 2869049 (Tex. June 7,...more

Houston Harbaugh, P.C.

Texas Supreme Court Addresses Fuel Gas Question

Many oil and gas leases across Pennsylvania allow the driller to divert and use volumes of raw gas to power and fuel production operations both on and off the leasehold. Is a driller obligated to pay a royalty on that volume...more

Gray Reed

Supreme Court of Texas Sorts Out Complicated Assignment of Oil and Gas Leases

Gray Reed on

In Occidental Permian, Ltd. et al v. Citation 2002 Investment LLC  the Supreme Court construed a 1987 assignment from Shell Western E& P Inc. to Citation of a large number of properties. The instrument contained these...more

Gray Reed

Supreme Court of Texas Decides Another Post-Production Cost Dispute

Gray Reed on

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

Oliva Gibbs LLP

The Force (Majeure) May Not Be So Strong in This One

Oliva Gibbs LLP on

In a recent lawsuit, an oil producer claims significant monthly losses due to a forced pipeline shutdown, alleging the pipeline company violated their contract by failing to adhere to U.S. laws and ensure operational...more

Houston Harbaugh, P.C.

Texas Supreme Court to Address the Obligation to Calculate Royalty on Gas Used to Fuel Off-Lease Operations

Houston Harbaugh, P.C. on

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

Gray Reed

Broad Form Indemnities in Construction Contracts (UPDATED)

Gray Reed on

Broad form indemnities are common in Texas construction contracts, even though indemnifying someone for their own negligence is a tough pill to swallow.  ...more

Oliva Gibbs LLP

The Texas Division Order Statute: How It Works and Who It Serves to Protect

Oliva Gibbs LLP on

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

Oliva Gibbs LLP

If the Lease Requires Notice, Then Provide Notice: Simple Enough?

Oliva Gibbs LLP on

I. Background In the case of Kirkbride v. Antero Res. Corp., the Sixth Circuit Court of Appeals is faced with a novel argument on the interpretation of a condition precedent within an oil and gas lease. The case comes to the...more

Gray Reed

Have You Recorded Your Saltwater Disposal Agreement?

Gray Reed on

According to Darkhorse Water LP v. Birch Operations Inc. et al., the form of an instrument affecting real property in Texas does not affect the interest conveyed by the instrument. It’s what the document says about the...more

Troutman Pepper

Energy Contracting and the Hidden Power of the Force Majeure Clause - Energy Law Insights

Troutman Pepper on

The energy sector is currently undergoing seismic change and with that change comes tremendous opportunity. Our energy video series, which features nationally recognized Troutman Pepper partners as they discuss a vast array...more

Gray Reed

Is a Merger a “Transfer of Leases”?

Gray Reed on

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

Gray Reed on

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

Who is responsible for the negligence of the “company man” on the well?

Gray Reed on

Parkman v. W&T Offshore, Inc., et al features two contractors playing hot potato over liability for a company man’s alleged negligence. The takeaway: Write your Master Service Agreement to address your liability concerns, and...more

Gray Reed

Master Service Agreement Dispute Turns on Definitions

Gray Reed on

The outcome of a multimillion-dollar suit was in the hands of a jury of 12 good and honorable citizens. The question: Was a certain party an agent, consultant, contractor, or none of the above? One side wanted the jury to be...more

Gray Reed

Duhig Rule Claim is Unsuccessful

Gray Reed on

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

Defense of a Deed Signed by a 12-Year-Old Fails

Gray Reed on

Foreshadowing a grim future for family weddings and funerals, Bell and Petsch v. Petch is a property dispute over five tracts of land in Gillespie County, Texas, in which siblings are the combatants. The events are less...more

Gray Reed

Fifth Circuit Punts Postproduction Cost Question to Louisiana Supreme Court

Gray Reed on

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

Merger Clause Defeats Claim to the Farmhouse

Gray Reed on

Barkley v. Connally, a “bet-the-farm” case if there ever was one, invokes the merger clause, a basic principle of contract law. Clients and lawyers: Read this analysis so as to avoid boundless grief and disappointment for...more

Gray Reed

Lessee: Don’t Covet Your Neighbor’s Operations

Gray Reed on

Can the Texas lessee perpetuate his oil and gas lease by “constructive participation” in wells drilled by another? Under the facts in Cromwell v. Anadarko E&P Onshore, LLC, the answer is no....more

Gray Reed

Winter Storm Uri – No Summary Judgment This Time

Gray Reed on

Unit Petroleum Company v. Koch Energy Services, LLC is another force majeure case arising out of winter storm Uri. Unlike a similar case, summary judgment was denied because, said the United States District Court, The word...more

Gray Reed

Federal Court Distinguishes Devon v. Sheppard

Gray Reed on

Producers disappointed by the Supreme Court’s holding in Devon Energy Production v. Sheppard might have reason to feel vindicated. The question in HL Hawkins Jr., Inc. v. Capitan Energy Inc. et al. was whether producer...more

Gray Reed

“Harmony” in a Texas Mineral Reservation

Gray Reed on

In Smart v. 3039 RNC Holdings LLC, the court reminds us that it will harmonize all parts of a contract, even one that “is not a model of clarity”, to reach the correct result. ...more

Gray Reed

Supreme Court of Texas Tackles the Meaning of “Predecessors”

Gray Reed on

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

267 Results
 / 
View per page
Page: of 11

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide