News & Analysis as of

Texas Appeals

Gray Reed

Texas Supreme Court Decides Who Must Produce to Maintain an Oil and Gas Lease

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In Cromwell v. Anadarko E & P Onshore LLC the Supreme Court of Texas did what it so often does: In order to provide “legal certainty and predictability”, the Court considered the plain language of a contract in order to...more

Ballard Spahr LLP

Texas Judge Strikes EEOC Guidance Protecting Transgender Employees

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A federal judge in Texas issued a decision on May 15, 2025, striking down portions of the EEOC’s Enforcement Guidance on protections against employment discrimination based on gender identity and/or sexual orientation....more

McGinnis Lochridge

Supreme Court of Texas Washes Out the “Anadarko Washout”

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The so called “Anadarko Washout” involves a washout of oil and gas leases on undivided working interests owned by non-operating mineral cotenants. This particular species of lease washouts is based on two recent cases from...more

Orrick, Herrington & Sutcliffe LLP

Texas Supreme Court answers Fifth Circuit’s question on loans in ruling

On May 23, the Supreme Court of Texas ruled that the maximum permissible interest on a loan must be calculated using the declining principal balance rather than the initial total principal amount. This decision was in...more

McGinnis Lochridge

Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

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In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

Fish & Richardson

En Banc Federal Circuit Grants Google a New Trial in EcoFactor Case

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On May 21, the U.S. Court of Appeals for the Federal Circuit, sitting en banc, released its opinion in EcoFactor, Inc. v. Google, LLC. In an 8-2 decision, the court reversed a $20 million jury verdict, holding that the...more

Foley Hoag LLP - Environmental Law

The 5th Circuit Rejects EPA's Nonattainment Designations in Texas; Don't Blame Loper Bright

On May 16, in Texas v. EPA, the 5th Circuit Court of Appeals rejected EPA’s nonattainment designation for two counties in Texas. What I find most interesting about the case is the reaction to it. Inside EPA (subscription...more

McGlinchey Stafford

Fifth Circuit: Employer’s Unreasonably Delayed Response Is Failure to Accommodate

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This decision surrounds the case of Alisha Strife v. Aldine Independent School District, in which the plaintiff, a U.S. Army veteran employed in the school district’s Human Resources department, requested an accommodation for...more

McGlinchey Stafford

5th Circuit Establishes New Standard for EPA on Sulfur Dioxide Omissions

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On May 16, 2025, the U.S. Court of Appeals for the Fifth Circuit issued a significant ruling in a longstanding dispute between the Texas Commission on Environmental Quality (TCEQ) and the U.S. Environmental Protection Agency...more

McGinnis Lochridge

Production Disputes and Estoppel Claims Cloud Lease Termination in Milam County

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In this lease termination case (Pruett v. River Land Holdings, LLC, No. 03-22-00478-CV, 2024 WL 1745652, at *1 [Tex. App.—Austin Apr. 24, 2024, no pet.]), the Austin Court of Appeals was tasked with examining a cessation of...more

Fox Rothschild LLP

Texas Supreme Court Reverses Liability Finding Against Franchisor

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A recent Texas Supreme Court decision fully overturned a jury’s finding that a franchisor was liable for the criminal actions of a franchisee’s employee. This decision underscores the importance of a franchisor having clearly...more

Jackson Walker

Business Court of Texas Clarifies “Qualified Transaction” Jurisdiction

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The Business Court of Texas’ recent opinion in Atlas IDF, LP v. NexPoint Real Estate Partners, LLC offers important guidance on the meaning of a “qualified transaction” under Texas Government Code Chapter 25A and the...more

McGinnis Lochridge

All Depths or Just One Formation? Court Clarifies Royalty Conveyance in Rock River v. Pioneer

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This recent case (Rock River Minerals, LP v. Pioneer Nat. Res. USA Inc., No. 08-23-00216-CV, 2024 WL 4528917 [Tex. App.—El Paso Oct. 18, 2024, no pet. h.]) explored whether an assignment of an overriding royalty interest,...more

McGinnis Lochridge

Affirmative Defenses Are Insufficient to Rebut the Van Dyke Presumption

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Under Van Dyke, deeds with double-fraction royalty reservations referencing “1/8” are presumed to reserve a floating royalty interest unless clearly contradicted. Defenses like waiver, ratification, and limitations cannot...more

Husch Blackwell LLP

Fifth Circuit: "Manifest Disregard of the Law" Cannot Be Grafted to FAA as a Basis for Vacatur of Arbitration Award

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In affirming a district court’s denial of a petition to vacate an arbitration award, the U.S. Court of Appeals for the Fifth Circuit recently rejected the argument “that manifest disregard of the law remains viable as an...more

McGinnis Lochridge

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

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A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more

Bradley Arant Boult Cummings LLP

Manifest Disregard Discarded: Fifth Circuit Limits Grounds to Vacate Arbitration Awards

“Manifest disregard of the law” is no longer a valid basis to challenge arbitration awards, at least not in the federal courts of Texas, Mississippi and Louisiana. Rather, according to the Fifth Circuit’s decision in U.S....more

McGinnis Lochridge

Drowning in Liability: Court Extends "Waste" Rule to SWD Operator; but preserves RPO defense

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In a watershed ruling, the El Paso Court of Appeals extends "waste" liability under the Nat. Res. Code to commercial disposal well operator—potentially increasing exposure for this critical wastewater industry—while...more

Oliva Gibbs

Reservation or Limitation on Warranty? Navigating the Fine Line — Lessons from Valence Operating Co. v. Davidson

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In Valence Operating Co. v. Davidson1, the Court of Appeals for the Sixth Appellate District of Texas at Texarkana addressed whether the provision, “all Oil, Gas and other Minerals have been excepted and reserved by former...more

Zelle  LLP

Concurrent Causation is Key – Fifth Circuit Holds Insured to its Causative Burden

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The United States Fifth Circuit Court of Appeals recently affirmed summary judgment granted by the bankruptcy court in favor of commercial property insurer in a Winter Storm Uri claim, holding that the insured motel owners...more

White and Williams LLP

In Texas, a Certificate of Merit Must Address the Conduct of Each Defendant Specifically  

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In Ryan Eng’g, Inc. v. Mond Homeowners Ass’n, Inc., No. 14-23-00960-CV, 2025 Tex. App. LEXIS 1681, the Court of Appeals of Texas (Court of Appeals) affirmed a trial court ruling denying the Motion to Dismiss of defendant Ryan...more

McGinnis Lochridge

Tackling Free-Use and At-The-Well Royalties

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This lease royalty case involved a dispute over whether the lessee was permitted to deduct volumes of gas used off the premises to power post-production activities on other gas produced from the same well. Carl v. Hilcorp...more

Carlton Fields

Texas Appeals Court Finds Project Owner Excluded From Coverage as Claimants’ Statutory Employer

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On April 3, 2025, a Texas state appeals court reversed a trial court order awarding Exxon Mobil $25 million under an umbrella insurance policy issued by Lexington Insurance Co. to Brock Services Ltd. The appeals court found...more

Farella Braun + Martel LLP

Texas Case Shows Why Juries Are Well-Suited To COVID Suits

A pending case in Texas illustrates why COVID-19 business interruption claims need to be decided by juries in light of case-specific facts, not by judges using a one-size-fits-all approach. Originally published in Law360 -...more

Gray Reed

Texas Court Extends Statutory Waste Provisions to Disposal Wells

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We begin with a word from your sponsor. After enduring several generative AI tutorials, we urge you to keep on reading Energy and the Law. Why? Our blog is more accurate, at least a little “fun”, offers insightful musical...more

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