A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed production without triggering termination.
The Texas Supreme Court ruled that ratifying a lease doesn't change a fixed NPRI to a floating one. However, a subsequent stipulation between parties can modify the NPRI, rejecting the argument that an unambiguous deed cannot be altered by a later stipulation.
In this mandamus proceeding, the court ordered venue transfer to Irion County, Texas, ruling the suit involved damages to real property under Texas Civil Practice and Remedies Code §15.011. M3P Directional Services, Ltd. challenged the trial court’s denial, asserting mandatory venue in Irion County.
Lario Oil & Gas Co. v. Black Hawk Energy Services, Ltd. highlights the importance of carefully drafting jury instructions and questions.
In a watershed ruling, the El Paso Court of Appeals extends "waste" liability under the Nat. Res. Code to commercial disposal well operator—potentially increasing exposure for this critical wastewater industry—while preserving the reasonably prudent operator defense.
Lease royalty calculated on “market value at the well” held to bear a proportion of gas used off the lease premises as a form of post-production cost under the workback method...
