There were fireworks yesterday at an open public meeting of the Texas Railroad Commission, the state regulatory body responsible for keeping tabs on the oil and gas industry. Following a variety of routine housekeeping matters, the agency’s General Counsel appeared before the three elected Commissioners in lieu of the regulator’s Executive Director, Kimberly Corley. Commissioner Ryan Sitton promptly interrupted the agency’s top lawyer to inquire about Ms. Corley’s whereabouts. He was informed that Ms. Corley had…
BREAKING: Texas Oil and Gas Regulators Face Off at Public Meeting
Antitrust Guidance from the DOJ and FTC for Hurricanes Harvey and Irma
On September 2, 2017, the Antitrust Division of the Department of Justice and the Federal Trade Commission (the “Agencies”) issued antitrust guidance for those engaged in commercial recovery efforts in the wake of Hurricanes Harvey and Irma.[1] The guidance concedes that cooperation among federal, state and local agencies will be necessary in the rebuilding of the Gulf Coast and the United States’ Caribbean holdings, and the guidance further acknowledges that recovery is likely to “require…
Does Harvey Give You An Excuse: Force Majeure And Related Contract Doctrines
Force Majeure is a civil law concept (French for “superior force”), but in U.S. law it is largely a creature of contract. Force majeure comes into play when “acts of God” or other extraordinary events prevent contractual performance.[1] In the wake of Hurricane Harvey, a number of energy companies have declared force majeure or announced shutdowns in southeast Texas, the nation’s hub for petrochemical plants and refineries. (ICIS.com publishes extensive information on the operational status…
The Tension Between Executives and Non-Executives in Mineral Leases
This week, KRCL’s energy law podcast addresses the fiduciary obligations of the executive rights holder to non-executive mineral interest owners, as well as an important appellate decision about acreage retention clauses keyed off of proration units. Also covered in this week’s episode: the Supreme Court of Texas agrees to settle a rift between the intermediate appellate courts concerning the proper interpretation of a common provision in oil-and-gas leases. Download the iPhone/iPad app for our podcast at…
Harvey’s Aftermath For The US Oil And Gas Sector
In a recent installment of Law360’s “Expert Analysis” series, KRCL trial lawyer Tom Ciarlone explained why—as the U.S. oil and gas industry recovers from Hurricane Harvey—operators must also be aware that force majeure clauses, excusing nonperformance during natural disasters, may not provide as much cover as they might think. Tom’s column can be found here.
Acreage Release Clauses in Mineral Leases: An Often Overlooked Pitfall for Operators
The Seventh Court of Appeals in Amarillo has rejected a jury verdict in favor of Hunt Cimarron, in a hard-fought controversy over a West Texas mineral lease. The intermediate appellate court determined that the lease had come to an end by operation of its own terms. More particularly, Hunt Cimarron argued that the full leasehold had been perpetuated beyond the expiration of its primary term in 2011, by way of the mineral lease’s “reworking” provisions….
The Battle Between Horizontal and Vertical Wells
A jury verdict out of Oklahoma may be a harbinger of what’s on the horizon for the many battles being waged in courthouses across the country between operators of horizontal wells and the vertical drillers who say their wells have been damaged—or destroyed—by hydraulic fracturing. Also, the Fifth Circuit puts the kibosh on a pipeline regulator’s attempts to implement a strict liability regime when Congress never authorized one.
Liability in the Oil and Gas Fields: Shooting the Gap Between Your Company and Its Employees
The Texas courts have continued to evaluate the nature and extent of liability that property owners have for the acts of independent contractors. As indicated in a new opinion from the Eastland Court of Appeals, this is highly relevant for owners, operators, and drillers. By way of background, the Texas Civil Practice & Remedies Code contains a provision entitled Liability for Acts of Independent Contractors. That provision specifically restricts the exposure of property owners to…
KRCL’s Energy Practice Group Featured in New Law360 Series
A member of KRCL’s Energy Practice Group, trial lawyer Tom Ciarlone, was the subject of the first installment of Law360’s new “Expert Analysis” series, What I Learned In My First Year, featuring attorneys’ true-life tales from the earliest days of their legal careers. You can read the article by clicking here.
KRCL Energy Law Podcast: iOS and Android Apps Available for Download
Yes, there’s an app for that! We’re excited to announce the release of custom iOS and Android apps for our podcast, Energy Law Round Up. Get the latest news and developments in oil-and-gas law pushed directly to your iPhone, iPad, or Android device. Download the iPhone/iPad app today by clicking here (http://tinyurl.com/energyios), or the Android app by following this link (http://tinyurl.com/energyandroid). The Energy Law Round Up app contains the following features: Car mode: rotate your…