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OSHA’s New Guidance for the Energy Arena

The Occupational Safety and Health Administration (OSHA) recently issued guidance for oil and gas industry workers and employers in light of the increased risk of workplace exposure to COVID-19. ...more

Texas Supreme Court to Consider Continuous Development Clause

The Texas Supreme Court has agreed to hear oral arguments in a dispute over an “accumulation” provision in a continuous development clause of an oil and gas lease.  The case is Endeavor Energy Resources L.P. v. Energen...more

Tenancy in Common and Joint Tenancy Explained

How long – if ever – has it been since you pondered the difference between a “tenancy in common” and a “joint tenancy”? Same for us, until the wheels came off a family relationship and a lawsuit was filed in Wagenschein v....more

Industry Custom Does Not Supersede Contract Language

In Barrow-Shaver Resources Company v. Carrizo Oil & Gas, Inc the Supreme Court of Texas has held again, here in a consent-to-assign dispute, that a contract means what the words say, even if in negotiations a landman said...more

Operator Runs Out the Clock on Co-Tenant

Less than a year ago, we discussed the “Unanswered Questions” left in the wake of Devon Energy Prod. Co., LP v. Apache Corp. (which did answer the question, “Who is a ‘Payor’ Under the Texas Natural Resources Code?”). ...more

Texas Supreme Court Clarifies Hyder

Burlington Resources Oil & Gas Company, LP. v. Texas Crude Energy, LLC et al is another chapter in the back-and-forth over deduction of post-production costs from royalty payments....more

A Lesson in Property Stipulations

Marsha Ellison v. Three Rivers Acquisition, LLC, et al. reminds us what is required for an instrument to be a conveyance and what is required for a stipulation to be effective....more

Contract Operator Not Liable for Breach of a Unit Operating Agreement

It’s a tale as old as the oilfield: A non-operator doesn’t pay joint interest billings, operator sues, non-payer claims the expenses were unwarranted and the operator was negligent—no, grossly negligent—for incurring them in...more

Anti-Washout Clause Defeated by the Rule Against Perpetuities

Is an overriding royalty interest lasting beyond the term of a lease-now-in-effect impossible to create? You saw the recent Texas Supreme Court opinion invalidating an anti-washout clause in TRO-X v. Anadarko Petroleum Corp....more

Redefining the Offset Well Clause, Part 2

As promised, here is a more in-depth analysis of the recent Supreme Court of Texas opinion in TRO-X LP v. Anadarko Petroleum Corp. ...more

Texas Supreme Court Redefines an Offset Well Clause

In Murphy Exploration & Production Co. — USA v. Adams the Texas Supreme Court held that an offset well clause in an oil and gas lease did not require the lessee to drill wells calculated to protect against drainage. Four...more

Who is a “Payor” Under the Texas Natural Resources Code?

You’ve secured the right leases. You’ve drilled nice wells in the right locations. Now, will you pay the right royalty owners? Follow Devon Energy Production Company, L.P. v. Apache Corporation, to be sure that you do....more

Farmout Agreement Worked Over By The Court

What could go wrong when the well recovers two times its costs in nine months? Plenty, as we see in Dimock v. Sutherland Energy....more

NPRI Reservation Survives Rule Against Perpetuities

Recall the Battle of the Bastards: The heroic Lady Sansa and the duplicitous Lord Baelish gallop over the hill to save the foolish Jon Snow from the heinous Ramsey Bolton. In similar fashion, but without the malnourished...more

Fraud Claim Rejected for Unreasonable Reliance

The ruling from the Supreme Court of Texas in JP Morgan Chase Bank, N.A., et al v. Orca Assets, G.P., L.L.C. was foreseeable. Experienced energy professionals who pass on the opportunity to examine title for themselves are...more

Landman Defeated By The Statute Of Frauds

Proving once again that gratitude is the rarest of human emotions, a contract between a landman and his client was deemed unenforceable, leaving the landman with nothing, even though he actually secured oil and gas leases for...more

An Oil and Gas Case to Expect From Louisiana, and Another From Texas

Anyone seeking stability in the law governing E&P activities in Louisiana will view the lower court decision as a grave error that must be corrected. Virtually every mortgage provides safeguards to protect collateral and...more

Opinions to Expect From the Texas Supreme Court

The Texas Supreme Court recently heard oral argument in three intriguing oil and gas cases. Here’s what you need to know about two of them (We’ll address the third case soon)....more

Trespass But no Damages in a Texas Case

What does it take these days to get money from a Texas jury? Not much, it seems; in XTO v. Goodwin the trick was convincing a higher court that you should keep it....more

Oil, Gas and the Electronic Transactions Act

In the spirit of Halloween, Le Norman Operating v. Chalker Energy Partners III is about a scary statute: The Texas Uniform Electronic Transactions Act, the UETA....more

Unit Operator Pays For a Problem of its Own Making

How many times must an operator suffer for a mistake in a unit declaration? Samson Exploration LLC v. T. S. Reed Properties Inc. makes it twice. (See Hooks v. Samson Lone Star for the first round). The Texas Supreme Court...more

Harvey and Climate Change, and Consideration of a Retained Acreage Clause

You’ve seen the headlines. The portrait is complete; the verdict is in; the clock has run down to zero. The devastation of Harvey is “unprecedented” and it’s all because of climate change. That’s not necessarily so, thanks...more

Does Texas Have a New “Rule” in Conveyancing?

Subject-to, reservations-from, and exceptions-to problems have been lurking in the shadows of Texas jurisprudence for a while now, and the courts have been all over the map in recent holdings....more

An Oil Patch Morality Play – Part 2

We recently discussed Freeman v. Harleton. The opinion shows the transaction as a bunco job. Here’s more: Bufkin and Wayne Freeman have done business together since the 1980s. They had a co-development agreement with...more

Pipeline Partnership Verdict Reversed

Enterprise Products Partners, L.P. et al v. Energy Transfer Partners, L.P. et al reversed one of the largest jury verdicts in Texas history. You will like this decision if... ...more

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