News & Analysis as of

TX Supreme Court Energy Sector

Oliva Gibbs LLP

Muscled Out While “Muscling In”: The Role of Actual Drainage in MIPA

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In Ammonite Oil & Gas Corp. v. R.R. Comm’n of Tex., the Texas Supreme Court held that the Railroad Commission (the “RRC”) did not abuse its discretion in denying a “muscle in” application under the Texas Mineral Interest...more

Locke Lord LLP

Texas Supreme Court Issues Electric Opinion on PUC Orders During Winter Storm Uri

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On June 14, 2024, the Supreme Court of Texas issued a pivotal opinion concerning the actions of the Public Utility Commission of Texas (Commission) during 2021’s Winter Storm Uri. In Public Utility Commission of Texas v....more

McGuireWoods LLP

Producers May Subtract Gas Used to Power Post-Production Activities From “At-the-Well” Royalty Payments

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In Carl v. Hilcorp Energy Co., the Texas Supreme Court—addressing certified questions from the Fifth Circuit—held that producers may subtract the volume of gas powering post-production activities from “at-the-well” royalty...more

Locke Lord LLP

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

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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

Skadden, Arps, Slate, Meagher & Flom LLP

Three Unfolding Cases Could Shape Future Energy Litigation, and Perhaps Business Practices

A stream of judicial decisions in the pipeline will have important implications for the energy industry. The three cases discussed below are among those that energy litigators and industry professionals are watching in 2024....more

McGuireWoods LLP

Texas Supreme Court Hears Oral Argument in Major Winter Storm Uri Case

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In February 2021, winter storm Uri hit Texas, causing a sharp spike in electricity demand that could not be satisfied by available generation resources, resulting in statewide blackouts. Commercial, industrial and residential...more

McGuireWoods LLP

Winter Storm Uri Power Dispute Reaches the Supreme Court of Texas

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On Sept. 29, 2023, the Supreme Court of Texas announced it will review a lower court’s reversal of two winter storm Uri orders by the Public Utility Commission of Texas (PUCT), which date back to 2021. During the historic...more

Husch Blackwell LLP

Texas Supreme Court Upholds ERCOT’s Sovereign Immunity

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In a forty-page opinion issued by Chief Justice Nathan L. Hecht, the Texas Supreme Court held that the Electric Reliability Council of Texas (“ERCOT”) has sovereign immunity regarding allegations of overpricing during Winter...more

Bradley Arant Boult Cummings LLP

Contextual “Construction” of Force Majeure Clauses

The Texas Supreme Court recently provided new guidance in interpreting force majeure language in an oil and gas drilling dispute. In Point Energy Partners Permian, LLC v. MRC Permian Company, the court held that the oil and...more

Bracewell LLP

Storage Wars: Ownership of Subsurface Salt Cavern Storage Rights

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Underground salt caverns are commonly used for the storage of liquids including liquefied hydrocarbons. These caverns are created by solution mining of salt from inside underground salt formations and could play a pivotal...more

McDermott Will & Emery

Reasonably Prudent Operator or Good and Workmanlike Manner: Does Your Contract Have the Right Standard of Care?

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The standard of care is an important provision in any operating, management or services agreement because it sets forth the expectations of the parties as to how the contract should be carried out. It also functions as the...more

Skadden, Arps, Slate, Meagher & Flom LLP

Supreme Court of Texas Clarifies Allocation of Post-Production Costs in Oil and Gas Royalties in BlueStone Natural Resources II,...

On March 12, 2021, the Supreme Court of Texas issued a unanimous opinion that clarifies when a lessee is entitled to deduct post-production costs from royalties paid to the lessor under oil and gas leases. Construing a lease...more

King & Spalding

Energy Newsletter - March 2020

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Disrupting the Disruptor: How a Prepared and Proactive Owner Can Mitigate the Effects of Coronavirus on Construction Projects - Once a remote health issue in China, the rapidly spreading coronavirus (COVID-19) has become...more

Jackson Walker

Texas Supreme Court Reaffirms Validity and Scope of General Easements

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Friday, February 28th, in Southwestern Electric Power Company v. Lynch et al., the Texas Supreme Court decided a hotly contested case regarding the interpretation of “general easements.” In Texas, the term “general easement”...more

Winstead PC

Texas Supreme Court Holds That  Parties Can Conclusively Agree That, As Between Themselves, No Partnership Will Exist Unless...

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In Energy Transfer Partners, L.P. v. Enter. Prods. Partners, L.P., one pipeline company sued another for breaching a duty of loyalty that allegedly arose out of a partnership to develop a pipeline. No. 17-0862, 2020 Tex....more

A&O Shearman

Texas Supreme Court Reaffirms Freedom of Contract and Rejects ‘Partnership by Ambush’

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On January 31, 2020, the Texas Supreme Court (the “Court”) affirmed a ruling from the Fifth Court of Appeals in Dallas in the case of Energy Transfer Partners LP et al. v. Enterprise Products Partners LP et al, No. 529 S.W.3d...more

Winstead PC

Business Owners Take Note as Enterprise Completes Its Mission: Supreme Court Holds No Common Law Partnership Was Formed with ETP

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The long-running legal saga between Enterprise Products Partners (“Enterprise”) and Energy Transfer Partners (“ETP”) may finally be nearing its end after the Texas Supreme Court issued a unanimous decision last Friday,...more

Jackson Walker

In Major Partnership Decision, Texas Supreme Court Affirms That Businesses Can Contract for Conditions Precedent to Preclude the...

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Disputes often arise over whether parties have agreed to, or by their conduct they have, committed themselves to a transaction. On January 31, 2020, the Texas Supreme Court delivered its decision in Energy Transfer Partners,...more

Winstead PC

ETP v. Enterprise: Texas Partnership Created by Conduct — A Dog That Won’t Hunt

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Following Supreme Court arguments last month, the final chapter in the long-running legal battle between Energy Transfer Partners LP (“ETP”) and Enterprise Products Partners (“Enterprise”) is finally coming to an end. ETP is...more

Womble Bond Dickinson

WIPEOUT!: Common Language in “Anti-Washout” Provision Violates the Rule Against Perpetuities

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In Yowell v. Granite Operating Co . 557 S.W.3d 794 (Tex. App.—Amarillo 2018, pet. granted), the Texas Court of Appeals for the Seventh District in Amarillo affirmed the trial court’s determination that an “anti-washout”...more

Womble Bond Dickinson

Whose Milkshake is Whose?: Pennsylvania Supreme Court Considers Whether the Rule of Capture Applies to Hydraulic Fracturing

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The Rule of Capture has been a foundational concept of oil and gas prospecting for 150 years. The Rule of Capture exists to provide an affirmative defense to drillers when they tap into oil and gas pockets that cross property...more

A&O Shearman

Texas Supreme Court Agrees to Review Controversial Ruling Regarding Texas Partnerships

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On June 28, 2019, the Texas Supreme Court agreed to review a ruling from the Fifth Court of Appeals in Dallas in the case of Energy Transfer Partners LP et al. v. Enterprise Products Partners LP et al, No. 529 S.W.3d 531...more

Gray Reed

Oil Field Technology … and a Texas Bill Aimed at Royalty Owners

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Welcome to today’s grab-bag of unrelated topics. The climate avengers are clever in the way they demonize the industry. They give zero credit for technological advancement. Truth is, the industry’s use of technology is...more

Gray Reed

Texas Supreme Court Opinion Has Companies Double Checking Contractual Insurance Obligations

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On February 15, 2019, the Texas Supreme Court issued its opinion in Exxon Mobil Corporation v. The Insurance Company of the State of Pennsylvania (ICSOP) reversing the First Court of Appeals and finding that ICSOP had waived...more

Gray Reed

Texas Supreme Court to Consider Macondo Blowout Insurance Dispute

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The 2012 Macondo Well blowout and Deepwater Horizon rig explosion gave rise to a slew of lawsuits. Our subject today is one of them. ...more

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