News & Analysis as of

Oil Wells Contract Terms

Bracewell LLP

All’s Well That Ends Well? NSTA Launch Investigation Into Oil Well Decommissioning Delays

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On 15 July 2024, 10 days into the UK Labour Government, the North Sea Transition Authority (“NSTA”, formerly known as the Oil and Gas Authority) announced that its Directorate of Regulation is opening an investigation into...more

Alston & Bird

Is “Into the Pipeline” the Equivalent of a Wellhead Valuation? Not So Fast, Says Texas Supreme Court

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Our Oil & Gas Team parses a ruling from Texas that reminds courts to look at the entire contract, not just a favorite word or phrase. The parties disagreed about where along the pipeline royalty valuation should occur. The...more

Gray Reed

Ambiguity Foils Right of Way Agreement

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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

Gray Reed

“Construction” of a Well Pad Requires More than a Survey

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In Evans Resources, L.P., et al. v. Diamondback E&P, LLC, two agreements left the terms “constructed” and “utilized” undefined. If the terms had been defined would the outcome have been different? Maybe. Should parties define...more

Gray Reed

Lessons from an Override Assignment

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Contract construction cases are fact-specific, but one can take lessons of general application from all of them. Here are the takeaways from Jones Energy, Inc. v. Pima Oil & Gas, L.L.C....more

Gray Reed

North Dakota: A Different Rule for Post-Production Costs In a State Lease.

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What’s good for the goose is not always good for the gander, at least in some places. It appears that the North Dakota Supreme Court has adopted the minority “ Marketable Product Rule” in connection with a 1979 North Dakota...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Oil and Gas Lease: Texas Supreme Court Addresses Offset Provision

The Texas Supreme Court (“Court”) recently ruled in favor of Murphy Exploration & Production Company—USA (“Murphy”) in a dispute arising from the location of an offset well on the properties of Shirley Mae Herbst Adams and...more

Gray Reed

Redefining the Offset Well Clause, Part 2

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As promised, here is a more in-depth analysis of the recent Supreme Court of Texas opinion in TRO-X LP v. Anadarko Petroleum Corp. ...more

Gray Reed

Texas Supreme Court Redefines an Offset Well Clause

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In Murphy Exploration & Production Co. — USA v. Adams the Texas Supreme Court held that an offset well clause in an oil and gas lease did not require the lessee to drill wells calculated to protect against drainage. Four...more

Gray Reed

How Not to Secure an Oil Well Lien in Louisiana

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Rozel Operating v. Crown Point Holdings, LLC, et al., reminds one of the need to understand and apply the meaning of terms used in a statute one is attempting to enforce. And imaginative theories don’t work without evidence...more

Gray Reed

Can Reworking a Saltwater Disposal Well Maintain a Lease?

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Should the sufficiency of reworking operations under the cessation-of-production clause of an oil and gas lease be limited to the producing well? Crystal River Oil and Gas, LLC et al v. Patton was a suit to terminate an oil...more

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