As I wrote in a recent blog post, oil-and-gas leases will often include an offset drilling clause. Such clauses stipulate that, if a well is drilled on a neighboring tract in proximity to the leasehold, the lessee generally has three options: drill an offset well to prevent drainage; release acreage, so the lessor can independently […]
SCOTX: When An “Offset Well” Is Not An Offset Well
Oil and Gas Law: 2Q18 Update
The second quarter of the year has seen abundant activity at the intersection of the energy industry and the law. These are some of the highlights.
KRCL Energy Law Breakfast Seminar: Video Preview
On July 19, 2018, from 8:00–10:30 a.m. at the Hess Club in Houston, Texas, KRCL’s Energy Practice Group will be hosting a complimentary breakfast seminar, Legal Developments at the Intersection of the Oil Patch and the New Administration.
SCOTX: Term Royalty Interests Survive the Rule Against Perpetuities
It is one of those arcane principles discussed at length in textbooks that manifests itself in the real world far less frequently: the rule against perpetuities, the notion “that no interest within its scope is good unless it must vest, if at all, not later than twenty-one years after some life in being at the creation of the interest.” Hunt […]
Pennsylvania Departs from Texas on Trespass by Hydraulic Fracturing
In Texas, the long-standing “rule of capture” controls claims for subsurface trespass predicated on hydraulic fracturing activities. The rule of capture is, of course, shorthand for the theory that landowners acquire title to the minerals they produce from wells on their land, even when some of the oil or gas migrates from adjoining tracts.
Oil and Gas Law: 2018 Thus Far
Although the New Year is still young, there are already many legal developments to report in the oil and gas sector. In no particular order, this is a cross-section of what has emerged at the intersection of the law and the energy industry thus far in 2018.
Oil and Gas Law: 2017 Year in Review
At the end of the year, I like to take stock—in summary form—of the leading decisions impacting the energy industry. Historically, this has been for my own personal reference, or something I share inside our firm with my partners. Since this crib sheet of sorts has been well received by my colleagues, I figured there […]
BREAKING: Texas Oil and Gas Regulators Face Off at Public Meeting
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 […]
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 […]
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.