News & Analysis as of

Well Drilling

Gray Reed

How Does the Model Form JOA Address an Operator/Non-Operator Dispute?

Gray Reed on

Texas Crude v. Burlington Resources Oil and Gas considers the relationship between the operator and non-operators under Articles V and VI of the 1982 Model Form Joint Operating Agreement....more

Gray Reed

What Will the Texas Supreme Court Say About Allocation and PSA Wells?

Gray Reed on

Alas, we might never know. Opiela v. Railroad Commission of Texas and Magnolia Oil & Gas Operating, was a challenge to the Commission’s authority to issue permits for allocation wells and wells drilled under Production...more

Husch Blackwell LLP

Trump Executive Actions Impacting Renewable Energy

Husch Blackwell LLP on

On President Trump’s first and second days in office, the new administration released a flurry of executive actions, in the form of both memorandums and executive orders, focused on the energy industry:...more

Oliva Gibbs LLP

Happiness is Setting Clear Boundaries — Especially in Overriding Royalty Assignments

Oliva Gibbs LLP on

Assignments of interests in oil and gas leases often incorporate by reference outside agreements. This can be a helpful shortcut to avoid including every lengthy and confidential provision that was drafted during negotiations...more

Allen Matkins

California Environmental Law & Policy Update 12.20.24

Allen Matkins on

On December 12, 2024, the California Department of Fish and Wildlife released its draft Western Joshua Tree Conservation Plan (Draft Conservation Plan) to the California Fish and Game Commission (Commission), as required by...more

Gray Reed

Louisiana Operator Survives Forfeiture of Right to Recover Drilling Costs

Gray Reed on

In Mistretta v. Hilcorp Energy Company, unleased mineral owner Mistretta sued Hilcorp alleging failure to provide requested production and well cost information pertaining to an oil well operated by Hilcorp. The well was in a...more

Houston Harbaugh, P.C.

Ohio Court of Appeal Addresses Whether Gathering and Transportation Are Separate and Distinct Post-Production Activities

Houston Harbaugh, P.C. on

As we approach the 20th anniversary of the Marcellus Shale play, one issue remains constant: the ongoing debate over the deduction of post-production costs. Landowners all across Pennsylvania have spent countless hours...more

Gray Reed

Federal Court Gives a Primer on Oil and Gas Lease Maintenance

Gray Reed on

In re: EP Energy E&P Company, LP considered three lease maintenance provisions in several oil and gas leases. The federal district court ruled that the leases were maintained in force after cessation of production despite...more

Houston Harbaugh, P.C.

No Funding For You?

Houston Harbaugh, P.C. on

On November 7, 2024, several Pennsylvania state senators from oil and gas producing regions introduced Senate Bill 1346 of 2024, which proposes to change the way that revenues from Pennsylvania’s unconventional well fee are...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

Houston Harbaugh, P.C.

Federal District Court Sends Pennsylvania Royalty Dispute To Trial

Houston Harbaugh, P.C. on

On September 6, 2024, the United States District Court for the Middle District of Pennsylvania denied dueling summary judgment motions concerning the interpretation of a royalty provision in Chambers v. Equinor USA Onshore...more

Oliva Gibbs LLP

Increased Efficiencies in the Permian Basin Contribute to National Growth

Oliva Gibbs LLP on

In April of 2024, the Railroad Commission of Texas (“RRC”) posted a year-end review of production for the year of 2023. According to the RRC, Texas oil and gas production reached record highs in the year of 2023....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

Louisiana Supreme Court Issues Major Post-Production Cost Opinion

Gray Reed on

In Self v. BPX Operating, a case with significant implications for Louisiana operators and royalty owners, the Supreme Court of Louisiana ruled that the doctrine of negotiorum gestio in La. Civil Code art. 2292 does not allow...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

Mitchell, Williams, Selig, Gates & Woodyard,...

Water Well Drillers' Act Enforcement: Missouri Department of Natural Resources Proposed Order Addressing Leopold Company

The Missouri Department of Natural Resources (“MDNR”) issued an Order of Suspension of Permit (“Order”) to Welker Pump Service (“Welker”). See Order No. WIS-2024-006. The Order provides that Welker is the responsible...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

Allen Matkins

California Environmental Law & Policy Update 6.28.24

Allen Matkins on

The U.S. Supreme Court today upended a 40-year-old decision that made it easier for the federal government to regulate the environment, public health, workplace safety, and consumer protections, delivering a far-reaching and...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

Houston Harbaugh, P.C.

Commonwealth Court Sends Drilling Waste Injection Well Case Back to Zoning Hearing Board

Houston Harbaugh, P.C. on

In Plum Borough v. Zoning Hearing Board of the Borough of Plum,____ A.3d ____ , No. 1198 CD 2022 (Pa. Commw. Ct. Jan. 29, 2024), the Pennsylvania Commonwealth Court vacated the grant of a special exception to Penneco...more

Goldberg Segalla

New California Bill Aims to Restore Local Governments’ Ability to Limit or Ban Certain Oil and Gas Extractions

Goldberg Segalla on

As reported to our readers in August 2023, the California Supreme Court in Chevron U.S.A., Inc. v. County of Monterey, (2023) Cal. LEXIS 4349, struck down a Monterey County initiative that would have banned oil and gas...more

Oliva Gibbs LLP

Elections Have Consequences – Why Oklahoma’s Amended Horizontal Pooling Rule May Prove to be Difficult to Apply

Oliva Gibbs LLP on

t is well established that forced pooling under Oklahoma law is done on a “unit-wide basis rather than on an individual wellbore basis.” However, never has it been the case that an election made under one forced pooling order...more

Allen Matkins

California Environmental Law & Policy Update 3.29.24

Allen Matkins on

The Biden administration issued a final rule this Wednesday aimed at curbing methane leaks from oil and gas drilling on federal and tribal lands. Adoption of the rule is its latest action to crack down on emissions of...more

Pillsbury - Gravel2Gavel Construction & Real...

Natural Hydrogen May Seem New in Town, but It’s Been Here All Along

When it comes to renewable energy, hydrogen is hailed as a pivotal resource in the zero-carbon game plan. Hydrogen energy is accessible, produces lower greenhouse gas emissions and can use existing gas infrastructure to power...more

Houston Harbaugh, P.C.

The Neale Rule – Who Really Owns the Oil and Gas Under Railroads?

Houston Harbaugh, P.C. on

Since the early 1900’s, your family has owned a 105 acre farm in Greene County, Pennsylvania. In 2024, you and your siblings sign an oil and gas lease with XYZ Drilling Company. The language in the lease states that it...more

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