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Lease Perpetuated Beyond Primary Term Without Production in Paying Quantities

If perpetuation of a mineral lease beyond the primary term is contingent upon continuous operations, do traditional notions of “production in paying quantities” always matter? Spoiler: No....more

Most-Favored-Nations Clause Costs Lessee

This “most-favored-nations” clause in three oil and gas leases on land in LaSalle County, Texas, was at issue in EP Energy E&P Co., L.P. v. Storey Minerals, Ltd. ...more

The Meaning of “Subject To” in a Deed

Commonwealth of Pennsylvania v. International Development Corporation resolved the question, In a 100 year old Pennsylvania deed is a “subject to” provision an exception to a grant or a warranty disclaimer?...more

Ohio Landowners Burdened with Post-Production Costs

Zehentbauer Family Land, LP v. TotalEnergies E&P USA, Inc. is a story we’ve heard before: Royalty owners contend they are not getting a big enough slice of the hydrocarbon pie, which presents a question courts must answer:...more

Louisiana Unit Operators May Deduct Post-Production Costs from Unleased Mineral Owners

The question with wide-ranging implications for Louisiana operators and mineral owners in Johnson et al. v. Chesapeake Louisiana LP et al is whether unleased mineral owners in a drilling unit established by the Commissioner...more

Stray Cows and Oilfield Operations Do Not Play Well Together

Foote and Cypert v. Texcel Exploration and Decker determined that cattle loitering uninvited around a well and tank battery are trespassers, not licensees. How it happened - Foote arranged with Yates to graze 650 head...more

Texas Supreme Court Clarifies Postproduction Cost Decision

It was jurisprudential Groundhog Day as the Supreme Court of Texas handed down Nettye Engler Energy v. Bluestone Natural Resources, another in a series of postproduction cost disputes, only two days after Puxsutawney Phil...more

Texas Court Decides What “Likewise” Means in a Conveyance

Consider the power of a single word over the fortunes of the parties to a property deed. Such was the court’s analysis in Barrow Shaver Resources, LLC, et al v. NETX Acquisitions, LLC, et al....more

Buried Pipeline Ruling Favors Lessors

In Texas, what happens to an obligation to bury pipelines when, after creation of the obligation, the surface and minerals are severed?  Henry v. Smith explains....more

Texas Supreme Court to Review the Lessee’s Covenant to Protect Against Drainage

First, a word for you scriveners: Preserve your reputation and the honor of your law school writing instructor by preparing clear and understandable contracts. ...more

Texas Court Accepts Only One Meaning of “Leased Premises” in an Oil and Gas Lease

How many different meanings can parties attribute to a term in an oil and gas lease?  Answer: As many as they want, but the court will only use one, says King Operating et al v. Double Eagle Andrews, LLC et al....more

Another Post-Production Cost Decision in Texas

In resolving a dispute over post-production cost deductions from oil and gas royalties (PPC’s), the court in Shirlaine West Properties Ltd et al v. Jamestown Resources, LLC and Total E&P USA, Inc. opined that the case ” … is...more

Fair and Reasonable Offer Required Before Force-Pooling in Texas

Ammonite Oil and Gas Corporation v. Railroad Commission of Texas illustrates the difficulties faced by lessees attempting to force-pool a tract under the Mineral Interest Pooling Act.  In this case, the applicant Ammonite...more

Addendum Prevails over Form … Again

When the form contract says one thing and the addendum says another, which one would you expect to prevail?...more

Louisiana Court Considers Buried and Surface Flowlines

In Emerald Land Corp. v. Trimont Energy (BL) LLC, a Louisiana federal court considered whether a lessee was required to remove flowlines buried beneath the surface and canal bottoms of property subject to mineral leases....more

Statute of Frauds Torpedoes an Overriding Royalty Sale

Here we go  again, in Gary and Theresa Poenisch Family Ltd. P’Ship v. TMH Land Servs., Inc., learning that a purported Texas land transaction will not be enforced if the parties fail to comply with the Statute of Frauds....more

Delaware Bankruptcy Court Treats Royalty Owner Claims as Unsecured

If you are a royalty owner and have questions about how your claim is likely to be treated when your lessee/operator goes into bankruptcy in Delaware, In re MTE Holdings LLC is a significant case....more

Texas Court Rules on a Retained Acreage Clause

Sometimes writing too many alternatives into an oil and gas lease invites confusion … which provokes litigation … which results in disappointment for somebody … or everybody. ...more

Louisiana Land Damage Claim Can’t Survive Prescription and Subsequent Purchaser Rule

In Lexington Land Development LLC v. Chevron Pipeline Company et al, a Louisiana landowner’s suit for damages to land alleged to have been caused by oil and gas operations failed to survive exceptions of prescription and the...more

Lessor Prevails in Texas Lease Termination Dispute

Lollygag: To fool around and waste time; dawdle.  As in, “I lollygagged for 15 years after filing my suit and obtained a less-than-optimal result.”...more

Texas Court Addresses Anti-Washout Clause and Rule Against Perpetuities

Yowell v. Granite Op. Co. and Apache Corp. v. Peyton Royalties, L.P. is another Rule Against Perpetuities case. Keep reading. The anti-washout protection for your reserved overriding royalty could be at risk....more

Texas Court Re-iterates the Need For Clearly Defined Contract Terms

In Apollo Exploration, LLC v. Apache Corp., Texas’ 11th Court of Appeals analyzed several provisions of purchase and sale agreements in a complex oil and gas transaction and demonstrated a measured, text-centered approach to...more

Texas Court Applies Amended Citizens Participation Act to a Lease Dispute

Howard, et al. v. Matterhorn Energy, LLC, et al. [6th Dist.] May 4, 2021 considered the Texas Citizens Participation Act as amended, effective on September 1, 2019....more

Tax Foreclosure on Royalty Did Not Include Possibility of Reverter

Ridgefield Permian, LLC, et al. v. Diamondback E & P LLC, et al. addresses the scope of a property interest foreclosed upon by a tax suit in Reeves County, Texas. In this post we will shortcut the complicated facts and...more

Oil and Gas Lease Addendum Supersedes Printed Form

In Apache Corp. v. Hill, et al.,  lessors prevailed in a lease construction dispute because of the court’s unsurprising conclusion that a typewritten addendum to oil and gas leases superseded conflicting provisions in the...more

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