Supreme Court of Texas Washes Out the “Anadarko Washout”
If your co-tenant drills the well… does your lease still live? The Texas Supreme Court just tackled a high-stakes question that’s shaken up oil and gas titles across the state.
Producer’s Edge
TEXAS OIL AND GAS LAW BULLETIN
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Who Owns the Empty Space? Texas Supreme Court Affirms Surface Ownership of Salt Caverns in Landmark Ruling
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.
Unclear Jury Instructions Allow for Various Interpretations
Lario Oil & Gas Co. v. Black Hawk Energy Services, Ltd. highlights the importance of carefully drafting jury instructions and questions.
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.
Strip and Gores Doctrine Extends Conveyance to Adjacent Severed Mineral Interest
The Fort Worth Court of Appeals held that the “strip and gore doctrine” applied to a 1984 conveyance of 76 acres, causing the conveyance to also include a severed mineral interest underlying an adjacent 8.25-acre strip of land.
U.S. Regulation of Cross-Border Transactions in the Oilfield Sector
Companies considering business opportunities outside of the United States must be prepared to deal with a myriad of new laws and regulations. There may be foreign laws to contend with, of course, but there are also U.S. laws related to international trade...
Severed Mineral Estates and Surface Use Disputes Part One: Extent of Implied Easement
Due perhaps to geologic serendipity, Texas has a long and extensive history of oil and gas exploration and production. Consequently, much of Texas’ lands have experienced...
Texas Supreme Court: Executive Duty Breached by Refusing to Lease
Texas Outfitters, Ltd., LLC v. Nicholson, 572 S.W.3d 647 (Tex. 2019) The Texas Supreme Court recently issued its opinion in Texas Outfitters v. Nicholson, addressing the duties an executive mineral owner owes to non-executive owners. The case focused on when an executive owner has a duty to sign...
Post-Production Cost Fights Continue: Supreme Court Holds the Phrase “Into the Pipeline” Set a Valuation Point for “Amount Realized” Royalties
In Burlington Resources, the Texas Supreme Court held that an oil and gas royalty assignment that required the royalty to be delivered “into the pipeline” permits the payor to deduct post-production costs from the royalty owners’ payment, even if the agreement purports to prohibit such a deduction.
Offset Obligations: Court Holds Offset Obligation Not Dependent on an Expectation of Profit or Actual Drainage
Bell v. Chesapeake Energy Corp, 2019 Tex. App. LEXIS 1978, 2019 WL 1139584 (Tex.Civ.App.—San Antonio, 2019, no pet) In the last edition of Producer’s Edge, we surveyed several recent offset cases. Those cases illustrate that horizontal shale plays have brought several unique twists and complications, which...
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