Producer’s Edge
TEXAS OIL AND GAS LAW BULLETIN
Who owns the void left behind after millions of tons of salt are mined - and can it be used for someone else’s storage business? The Texas Supreme Court just drew the line.
Lario Oil & Gas Co. v. Black Hawk Energy Services, Ltd. highlights the importance of carefully drafting jury instructions and questions.
The Texas Supreme Court heard oral arguments last week in a case that could substantially clarify, or even fundamentally reshape, the characterization and ownership of underground storage rights in Texas.
To many oil and gas lawyers the COPAS accounting procedure is sometimes an afterthought. But, in the context of JOA disputes, whether or not directly involving accounting issues, the COPAS procedure can have a critical impacts.
Who owns the void left behind after millions of tons of salt are mined - and can it be used for someone else’s storage business? The Texas Supreme Court just drew the line.
What happens when your easement says nothing about width? A Texas court just weighed in after a landowner tried to set one.
A Texas court held that an assignment of overriding royalty interests covering “all depths” was not limited to a specific formation, rejecting the argument that references to a unit agreement implied vertical limits on the conveyed interests.
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 override the deed’s unambiguous language or its historical conduct.
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 production without triggering termination.
In this mandamus proceeding, the court ordered venue transfer to Irion County, Texas, ruling the suit involved damages to real property under Texas Civil Practice and Remedies Code §15.011. M3P Directional Services, Ltd. challenged the trial court’s denial, asserting mandatory venue in Irion County.
