26-Step Mechanical Framework For Interpreting Deeds?
Texas courts reject "mechanical" deed interpretation while creating a 26-step framework. Bush v. Yarborough reveals the irony of structured analysis disguised as flexible law.
Producer’s Edge
TEXAS OIL AND GAS LAW BULLETIN
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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.
Plain Language Meets Common Sense: Hidden Traps in Oil Patch Contract Interpretation
What happens when a court reads your contract literally for one issue but decides what 'makes sense' for another? A geophysicist just found out.
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.
Texas Business Court Weighs Jurisdiction over Out-of-State Property Interests
When can a Texas court rule on New Mexico property disputes? The answer hinges on whether the property interest is 'central' or just 'incidental' to the real fight.
Are Statute of Limitations Battles Becoming the New Frontline in Water Injection Cases?
When your neighbor's wastewater tanks your oil wells, when exactly can you sue? A Texas court wrestles with a timing question reshaping industry battles.
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...
Supreme Court Splits Over Use of Expert Testimony and Other Extrinsic Evidence When Construing Obligations in Oil and Gas Agreements
On June 28, 2019, a divided Texas Supreme Court issued its opinion in Barrow-Shaver Resources Company v. Carrizo Oil & Gas, LLC, a decision that will impact what evidence a court can consider in oil and gas contract disputes and possibly how oil and gas agreements are negotiated and drafted.
Producer's Edge: Volume 1, Issue 2
McGinnis Lochridge's Oil & Gas Newsletter: Producer's Edge keeps clients informed about Texas oil and gas case law, regulatory updates, and insightful articles relevant to the oil and gas community. In this edition, we present several insightful articles, including an article covering the recent Barrow-Shaver opinion...
Ratification Issue Did Not Provide Path to Attorneys’ Fees
M & M Res., Inc. v. DSTJ, LLP, 2018 Tex. App. LEXIS 9331 (Tex.Civ.App.—Beaumont 2018, no pet.) Plaintiffs in title disputes sometimes will allege a claim under the Declaratory Judgment Act in order to seek attorneys’ fees. In this case, the court held that the claim could...
