When Contract Language Costs Millions: Court Strikes Down Post-Closing Assignment 'Corrections'
Can one word in a contract cost millions? A Texas oil company just discovered what happens when 'may' doesn't mean 'must' in their royalty assignments.
Can one word in a contract cost millions? A Texas oil company just discovered what happens when 'may' doesn't mean 'must' in their royalty assignments.
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.
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.