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 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.
The 1989 JOA: Horizontal Modifications and Other Crucial Updates
The 1989 JOA is one of the most common O&G forms. However, updates are need in response to 25 years of case law and continually evolving custom & practice. Introduction As we discussed in the last article pertaining to Oil and Gas Joint Operating Agreements, the JOA is...
Introduction to Joint Operating Agreements
The joint operating agreement (“JOA”) is the most commonly used instrument in the oil and gas industry, surpassed only by the oil and gas lease. In essence, a JOA provides the contractual basis for the cooperative exploration, development, and production of oil and gas properties among multiple leasehold cotenants. By...
Wyoming: Can Lessees Pool Overriding Royalty Interests?
There is a debate among Wyoming oil and gas attorneys, and I wanted to weigh in. Some (maybe even many) Wyoming lawyers believe an overriding royalty interest simply cannot be pooled in Wyoming without the owner's direct and express consent. Of course, this is only a debate in...
Legalese: Standard Interpretive Boilerplate
"Legalese Schmegalese." I first started reviewing contracts back in my days working with TIC Wyoming, Inc., a subsidiary of the Kiewitt Corporation, reviewing large scale heavy industrial construction contracts for construction jobs such as oil refineries, natural gas compressor stations, and coal mine facilities. I'll be...
Farmout Agreements: Key Decisions and Negotiation Points
Introduction As I stated in my Part One of my Farmout Agreement Series, farmout agreements can be somewhat less "straight-forward" than other common oil and gas agreements. Contracts, Leases, JOA's, for example, are each highly standardized and have one or more publishers of highly-adopted forms. Farmout...
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