News & Analysis as of

Oil & Gas Land Owners

Gray Reed

Texas Surface Owner Denied the Right To Buried Pipeline

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Unitex WI LLC v. CT Land and Cattle Company LLC rejected the surface owner’s effort to force the mineral lessee to bury a pipeline below plow depth. Surface owner CT’s claim was based on a mineral lease signed by former owner...more

Houston Harbaugh, P.C.

Texas Appeals Court Rules that Surface Owner Could Not Enforce Pipeline Burial Covenant in Oil and Gas Lease

Houston Harbaugh, P.C. on

Let’s assume that you purchase a 105 acre farm in Greene County in 2022. You purchase only the surface estate while the seller, Farmer Jones, retains the underlying oil and gas rights. You intend to grow corn and winter...more

Gray Reed

Suit to Terminate Texas Oil and Gas Lease Fails for Lack of Evidence

Gray Reed on

The real takeaway from Pruett v. River Land Holdings LLC is the reminder that the Texas Railroad Commission cannot adjudicate questions of title. ...more

Gray Reed

How Courts Look at Fixed or Floating Royalty Disputes

Gray Reed on

Montgomery Trustee v. ES3 Minerals and Echo Minerals is another Texas fixed or floating royalty case. Before diving into the details, perhaps it’s best to describe the pattern the courts seem to fall into to resolve these...more

Houston Harbaugh, P.C.

Pennsylvania Court Rules That Shut-In Royalty Provision Had No Connection to the Duration of an Oil and Gas Lease

Houston Harbaugh, P.C. on

In its May 22, 2024 non-precedential memorandum decision in Frye v. Penn View Exploration, Inc., 919 WDA 2023 (Pa. Super. Ct. May 22, 2024), the Pennsylvania Superior Court found that an oil and gas lease’s shut-in royalty...more

Oliva Gibbs LLP

Third Time’s a Charm: Ohio Supreme Court Remands Case for Failing to Follow Instructions

Oliva Gibbs LLP on

In August 2016, AWMS Water Solutions, L.L.C., AWMS Holdings L.L.C., and AWMS Rt. 169, L.L.C. (collectively, “Appellants”) filed their original writ of mandamus to commence property-appropriation proceedings since, in their...more

Houston Harbaugh, P.C.

Texas Supreme Court to Address the Obligation to Calculate Royalty on Gas Used to Fuel Off-Lease Operations

Houston Harbaugh, P.C. on

Let’s assume you own 165 acres in Tioga County. In 2019, you sign a new oil and gas lease with ABC Drilling. You negotiate an 18% net royalty. The royalty clause, however, requires ABC Drilling to calculate the royalty on...more

Newburn Law

The Death of the Acreage Dedication?

Newburn Law on

Acreage dedications in midstream oil and gas contracts have been subject to considerable scrutiny and legal debate in recent years. This article provides an overview of the current state of acreage dedications, examining key...more

Newburn Law

Acreage Dedications in Midstream Contracts

Newburn Law on

Acreage dedications are a fundamental component of midstream oil and gas agreements, playing a crucial role in facilitating the transportation of hydrocarbons from production sites to market. These dedications involve the...more

Gray Reed

Mineral Lessee’s H2S Damage Claim Rejected

Gray Reed on

Landowner and mineral owner (that includes you, lessee): Under ETC Texas Pipeline, Ltd. v. Ageron Energy, LLC, your right to sue for damages for tort or trespass could pass into history before you even know you have a claim....more

McGuireWoods LLP

Ownership of Pore Space and Its Relation to Surface Estate

McGuireWoods LLP on

Land rights and interests continue to be a prominent fixture in the legal landscape. Among other things, the ownership of highly sought-after pore space has been at the center of multiple property rights cases and legislation...more

Houston Harbaugh, P.C.

West Virginia Appellate Court Rules That Estate Misconception Theory Did Not Apply To 1902 Deed

The calculation of production royalties and the deduction of post-production costs remains a troubling issue for Pennsylvania landowners. But there is another frustrating and often confusing royalty-related issue which can,...more

Gray Reed

Fifth Circuit Punts Postproduction Cost Question to Louisiana Supreme Court

Gray Reed on

The question in Self v, BPX Operating Company is how to balance the Louisiana Civil Code Art 2292 principle of negotiorum gestio against Louisiana’s conservation statutes....more

Houston Harbaugh, P.C.

Federal Court In Ohio Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on

Let’s assume you own 95 acres in Greene County, Pennsylvania. In 2019, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Clarifies Nature of Oil and Gas Lease Under Pennsylvania Law

Let’s assume you own a 160-acre farm in Washington County. Your father purchased the farm in 1992 from a local farmer named Jones. (the “1992 Deed”). At the time your father purchased the farm, there was an oil and gas lease...more

Houston Harbaugh, P.C.

Landowners Should Be Careful Before Making Representations About Prior Oil and Gas Development on their Property

Houston Harbaugh, P.C. on

Before signing oil and gas leases, landowners should pay close attention to lease provisions asking for warranties and representations about prior oil and gas development on the land. These provisions are often buried in a...more

Houston Harbaugh, P.C.

The Strip and Gore Doctrine - Who Really Owns The Oil and Gas Under Roads and Highways?

Houston Harbaugh, P.C. on

Let’s assume your grandfather owned 99 acres in Washington County. In 1955, he sells a small portion of the farm to the Commonwealth of Pennsylvania in order to facilitate the construction of new State Route 39. This acreage...more

Houston Harbaugh, P.C.

Texas Supreme Court Rules That Scheduling Mistake Does Not Qualify as Force Majeure Event

Houston Harbaugh, P.C. on

Let’s assume you signed a new oil and gas lease with XYZ Drilling in August 2018 (the “2018 Lease”). Your lease contains a “continuous drilling” clause which requires XYZ Drilling to commence a new well within ninety (90)...more

Houston Harbaugh, P.C.

Texas Supreme Court Rules That 1924 Deed Conveyed One Half Of The Oil and Gas Estate

Houston Harbaugh, P.C. on

The calculation of production royalties and the deduction of post-production costs remains a controversial topic here in Pennsylvania. As we have written before, there is another frustrating and often confusing...more

Houston Harbaugh, P.C.

Texas Supreme Court Rules That Post-Sale Costs Must be Added Back to Gross Proceeds Calculation

Houston Harbaugh, P.C. on

Let’s assume you own 185 acres in Washington County. In 2020, you negotiate a new oil and gas lease with ABC Drilling. During the negotiations, you insist on a “gross royalty” which prohibits the deduction of post-production...more

Houston Harbaugh, P.C.

Ohio Federal Court Allows Subsurface Trespass Suit To Move Forward

Houston Harbaugh, P.C. on

This is a familiar yet troubling question. Imagine you own 135 acres in Washington County. You have received offers from several oil and gas drillers but have not yet signed a lease. Your neighbor, however, did sign a lease...more

Gray Reed

Reserved Royalty Interest is “Floating”

Gray Reed on

Texas courts continue to address the “fixed or floating” non-participating royalty interest question. The El Paso Court of Appeals’ answer in Bridges v. Uhl et al. was floating, based on the language in that particular...more

Houston Harbaugh, P.C.

Pennsylvania Supreme Court Agrees to Hear Appeal In Royalty Dispute

Houston Harbaugh, P.C. on

On February 15, 2023, the Pennsylvania Supreme Court agreed to hear the appeal of PennEnergy Resources, LLC in the Dressler Family, LP v. PennEnergy Resources, LLC matter. The Pennsylvania Supreme Court’s review of this...more

Houston Harbaugh, P.C.

Can "Free Gas" Clauses Refute the Artificial Wellhead Value Suggested by Drillers?

Houston Harbaugh, P.C. on

An oil and gas lease with a “free gas” clause may be a valuable tool for landowners to push back against drillers’ inaccurate attempts to value gas at the “wellhead”. Prior to the advent of Marcellus Shale drilling, "free...more

Roetzel & Andress

Court of Appeals Issues Significant Mineral Trespass Opinion Upholding Multi-Million-Dollar Future Damages Award

Roetzel & Andress on

On January 18, 2023, in TERA, LLC v. Rice Drilling D, LLC, et al., --- N.E.3d ----, 2023-Ohio-273, the Seventh District Court of Appeals issued a key decision concerning mineral trespass law in Ohio. The court of appeals...more

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