Introducing Producer's Edge: Volume 6, Issue 2
Producer’s Edge, Volume 6, Issue 2, brings you regulatory developments, and industry trends tailored for the oil and gas sector.
Producer’s Edge
TEXAS OIL AND GAS LAW BULLETIN
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Who Owns the Void? Oral Arguments at SCOTX Regarding Underground Storage Rights
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.
New Business Courts: Strategic Considerations for Oil and Gas Counsel
The Texas Business Courts will potentially impact a wide range of cases, from high-value contract disputes to intricate corporate governance issues.
COPAS Accounting Procedures: Key Litigation Perspectives
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.
Royalty Recoupment: Operator's Primer for Recovering Overpayments
For oil and gas operators, few things are more frustrating than discovering you may have been overpaying royalties to a person or entity in your paydeck.
Texas Supreme Court to Determine Whether Accommodation Doctrine Applies to Severed Groundwater Estate
The Texas Supreme Court recently granted Coyote Lake Ranch's petition to review an opinion by the Amarillo Court of Appeals in Lubbock v. Coyote Lake Ranch, holding that the "Accommodation Doctrine" does not apply to the relationship between a surface owner and the owner of a...
Case Law Update: ConocoPhillips Must Release 15K Acres
Texas Case Law Update: On August 5, 2015, the San Antonio Court of Appeals released its opinion in ConocoPhillips Company v. Vaquillas Unproven Minerals, Ltd., (( No. 04-15-00066-CV (San Antonio – August 5, 2015). )) affirming the trial court’s order declaring ConocoPhillips breached two oil and gas leases in Webb County by...
Anderson v. Dominion - JOA AMI, Pref Right, Contract Area and Term
In Anderson Energy Corp. v. Dominion Oklahoma Texas Exploration & Prod., Inc., (( 04-14-00170-CV, 2015 WL 3956212 (Tex. App.—San Antonio June 30, 2015, no. pet. h.) )) the San Antonio Court of Appeals answered the following questions involving a 1977 AAPL JOA, with a printed Pref Right, and a typewritten AMI:...
TX Supreme Court: Chesapeake May Not Deduct Post-production Costs from Overriding Royalty
In a 5-4 decision, the Texas Supreme Court issued its opinion in Chesapeake Exploration, L.L.C. v. Hyder, 14-0302, 2015 WL 3653446 (Tex. June 12, 2015), holding that Chesapeake is prohibited from deducting postproduction costs from an “overriding royalty interest” described in a lease. The Majority noted that while...
Anatomy of a Joint Operating Agreement
In Introduction to Joint Operating Agreements, we reviewed several of the critical roles a JOA can play within the oil and gas industry. One of the first steps to understanding the JOA is to understand the anatomy of its several components. The AAPL Joint Operating Agreement is organized into the...
Texas Court: Lessee May Not Exclude Other Lessees from Constructing Surface Facilities Or Drilling Through Mineral Estate
The San Antonio Court of Appeals, in Lightning Oil Co. v. Anadarko E&P Onshore, LLC, held that a Texas oil and gas lease does not inherently convey a right for the lessee to control the “subterranean structures” from which hydrocarbons may be produced.
