Are PSA/Allocation Wells “Pooling By Another Name”?
The current answer to this question is no. In R.R. Comm’n of Tex. v. Opiela, the Austin Court of Appeals concluded that PSA/allocation wells are not the same as pooling under Texas law.
The current answer to this question is no. In R.R. Comm’n of Tex. v. Opiela, the Austin Court of Appeals concluded that PSA/allocation wells are not the same as pooling under Texas law.
In this recent case, the Eastland Court of Appeals considered whether a gathering and processing agreement’s dedication provisions were void under the statute of frauds and whether broad contractual damage waivers barred recovery of both direct and indirect lost profits.
The court held that approving a drilling zone on non-city land didn't violate Local Gov’t Code § 253.005(c), which only applies to municipal leases. It also found the City Council has authority under the Unified Development Code to adjust drilling zones for public welfare.
A lessee under 16 non-standard leases resumed production after a brief pause without drilling or reworking. The court held the leases didn't terminate due to the continuous development clause and interpreted the habendum clause as allowing production to resume without new operations.
A landowner’s failure to provide consent for surface use related to oil and gas operations does not necessarily preclude the lessee from conducting activities if the lease agreements allow surface use.
The Texas Supreme Court clarified that when challenging a foreclosure judgment due to a due process violation, the party must provide evidence. In this case, the Gill parties failed to prove inadequate notice, so the court upheld the statute of limitations defense.