Well Drilling, Leases

Texas Appeals Court Rules that Surface Owner Could Not Enforce Pipeline Burial Covenant in Oil and Gas Lease

Houston Harbaugh, P.C. on 9/13/2024

Let’s assume that you purchase a 105 acre farm in Greene County in 2022. You purchase only the surface estate while the seller, Farmer Jones, retains the underlying oil and gas rights. You intend to grow corn and winter...more

Federal Court In Ohio Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on 9/26/2023

Let’s assume you own 95 acres in Greene County, Pennsylvania. In 2019, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

Ohio Federal Court Allows Subsurface Trespass Suit To Move Forward

Houston Harbaugh, P.C. on 3/28/2023

This is a familiar yet troubling question. Imagine you own 135 acres in Washington County. You have received offers from several oil and gas drillers but have not yet signed a lease. Your neighbor, however, did sign a lease...more

Can Retroactive Pooling and Unitization Revive An Expired Lease?

Houston Harbaugh, P.C. on 2/8/2023

As we have written about before, a troubling issue facing landowners in the Marcellus Shale region is the practice of retroactive pooling and unitization. Retroactive pooling and unitization occurs when a driller records an...more

Ohio Court of Appeals Upholds Depth Severance Clause in Lease

Houston Harbaugh, P.C. on 1/26/2023

Let’s assume you own 125 acres in Greene County, Pennsylvania. A landman from XYZ Gas Co. approaches you about a new oil and gas lease. The lease purports to grant XYZ Gas Co. exclusive drilling rights to the Marcellus...more

Federal Appeals Court Rules That Driller Must Establish Marketability of Each Gas Product under Market Enhancement Clause

Houston Harbaugh, P.C. on 1/13/2023

Many Pennsylvania oil and gas leases have what is commonly known as a “market enhancement” royalty clause (“MEC”). These MEC leases typically prohibit the deduction of any post-production costs that are incurred transforming...more

Pennsylvania Superior Court Rules that Royalty Clause Referencing Both ‘Gross Proceeds’ and ‘At the Well’ Was Ambiguous

Houston Harbaugh, P.C. on 5/20/2022

Let’s assume that you own 125 acres in Tioga County. In 2017, you negotiate a new oil and gas lease with XYZ Drilling. During the negotiations, you insist on a “gross royalty” which prohibits the deduction of...more

Are Your Royalties Going Up in Flames?

Houston Harbaugh, P.C. on 2/25/2022

Let’s assume you own 114 acres in Tioga County Pennsylvania. In 2012, you signed an oil and gas lease with XYZ Drilling. Two years later they drill and complete the MUSKIE #1H Well. The royalty clause in the 2012 lease...more

You Own the Oil. Do You Own the Rock?

Gray Reed on 9/3/2015

Riddle: What’s the difference between a hydrocarbon molecule and the underground structure which the molecule inhabits? Answer: In Texas, you can own one and not the other, according to Lightning Oil Co. v. Anadarko E&P...more

The Early Bird Catches the Worm: A Lesson in Submitting Drilling Applications Early to Avoid Expiration of Federal Oil and Gas...

Stoel Rives LLP on 2/27/2015

As many of you know, permitting delays are not only frustrating but can have real consequences for project applicants with contractual deadlines. In the case of a federal oil and gas lease, operators should be mindful of the...more

Well Drilling › Leases

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