News & Analysis as of

Texas Mineral Leases Oil & Gas

Gray Reed

Ratifications, Stipulations, and Fixed vs. Floating Royalty Interests

Gray Reed on

After four stops at the lower courts, Kenneth Hahn v. ConocoPhillips has been resolved by the Supreme Court of Texas. The Court opined on the effect of two instruments often used to clarify land titles in Texas: ...more

Gray Reed

Texas Supreme Court Will Review Produced Water Case

Gray Reed on

Who owns produced water in Texas?  And what is produced water anyway – oil and gas waste and part of the mineral estate, or groundwater and part of the surface estate?  We may be closer to an answer to these questions now...more

Oliva Gibbs LLP

Coverting a “Fixed” to a “Floating” NPRI: What (If Anything) Does ConocoPhillips v. Hahn Add to the Conversation?

Oliva Gibbs LLP on

In ConocoPhillips Co. v. Hahn, the Supreme Court of Texas addressed whether a “fixed” nonparticipating royalty interest (“NPRI”) was later converted to a “floating” NPRI. The court weighed two possible means of this...more

Houston Harbaugh, P.C.

Texas Appellate Court Rules That ‘Free of Cost’ Clause In 1960 Deed Prohibits The Deduction of Post-Production Costs

Houston Harbaugh, P.C. on

Let’s assume you own a 135 acre farm in Tioga County, Pennsylvania. In 2020, you negotiate a new oil and gas lease with XYZ Drilling Company. During the negotiations, you insist on a cost free, no deduction royalty of 17%. ...more

Gray Reed

Texas Railroad Commission’s Denial of MIPA Forced-Pooling Affirmed

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If you follow the Texas Railroad Commission closely, you should read Ammonite Oil & Gas v. Railroad Commission of Texas, in which the Supreme Court rejected a mineral owner’s effort to force pool an interest under the Mineral...more

Oliva Gibbs LLP

Muscled Out While “Muscling In”: The Role of Actual Drainage in MIPA

Oliva Gibbs LLP on

In Ammonite Oil & Gas Corp. v. R.R. Comm’n of Tex., the Texas Supreme Court held that the Railroad Commission (the “RRC”) did not abuse its discretion in denying a “muscle in” application under the Texas Mineral Interest...more

Porter Hedges LLP

Wellbore Transactions Update - Conveyances, Reservations And Related Lease Severance Issues

Porter Hedges LLP on

This article focuses on the state of Texas law regarding wellbore rights and various related issues raised by transactions involving such rights (and other similar lease severance issues) and provides some practical tips to...more

White & Case LLP

Implications of the Texas Supreme Court and the Fifth Circuit Court of Appeals Ruling on Fuel Gas Royalties

White & Case LLP on

On June 4, 2024, the United States Court of Appeals for the Fifth Circuit affirmed the dismissal of an "at the well" royalty holder's class action lawsuit after the Texas Supreme Court held that Hilcorp Energy Co. properly...more

Oliva Gibbs LLP

The Texas Division Order Statute: How It Works and Who It Serves to Protect

Oliva Gibbs LLP on

A division order is a statement executed by all owners of interests in an oil and gas well.  The division order’s essential purpose is to “authorize and direct to whom and in what proportion to distribute” proceeds from the...more

Jackson Walker

Mine: All Mine? Texas Ownership of Produced Water and Its Constituent Parts (Lithium)

Jackson Walker on

Is it mine? Is what’s in it mine too? The fight over produced water has become a contentious issue in the oil patch. Primarily, because it is a new and unforeseen source of revenue for operators and landowners....more

Houston Harbaugh, P.C.

Texas Court Confirms “Automatic Termination” Rule for Oil and Gas Lease

Houston Harbaugh, P.C. on

In Cromwell v. Anadarko E&P Onshore, LLC, 676 S.W. 3d 860 (Tex. App. 2023), the Texas Court of Appeals confirmed the automatic termination of an oil and gas lease, and simultaneously rejected the argument that a forfeiture...more

Gray Reed

Texas Supreme Court Rules on Suspension of Proceeds of Oil and Gas Production

Gray Reed on

Freeeport-McMoRan Oil and Gas, LLC and Ovintiv USA Inc. v. 1776 Energy Partners LLC  presented a recurring question faced by Texas oil and gas producers:  When can proceeds of production be withheld by the operator without...more

Houston Harbaugh, P.C.

Is Deducting Fuel Costs Authorized by Your Lease?

Houston Harbaugh, P.C. on

Deducting fuel costs from landowner royalties continues to be an ongoing and widespread practice. Not only are landowners denied a royalty on the fuel gas volume, but they are also having that same “cost” deducted from their...more

McDermott Will & Emery

Reasonably Prudent Operator or Good and Workmanlike Manner: Does Your Contract Have the Right Standard of Care?

McDermott Will & Emery on

The standard of care is an important provision in any operating, management or services agreement because it sets forth the expectations of the parties as to how the contract should be carried out. It also functions as the...more

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