Chesapeake has not had a good run in the courts lately. It has been hammered over the last year with lawsuits brought by mineral lessors alleging that the natural gas giant has swindled them out of millions of dollars in royalty payments. And the plaintiffs in these cases are winning–or settling out of court for what […]
Post-Production Deductions and Affiliate Sales: A Potential Minefield for Unwary Operators
When is a Duck, a “Duck”?
Those of us representing employers in the oil patch know the sad scenario all too well. Exceedingly well paid employees and contractors seek even more pay, usually once terminated, through a long-standing law, the Fair Labor Standards Act (the “Act” or the “FLSA”). The latest target of this attack is Stuart Petroleum, who is being […]
When Damage Control Is Damaging: A Cautionary Tale for Publicly Traded Energy Companies
The United States Court of Appeals for the Fifth Circuit recently reviewed a district court’s decision to certify a class of investors in British Petroleum securities. The case, Ludlow v. BP, P.L.C., No. 14-20420, centers on BP’s alleged misstatements relating to the catastrophic blowout of the Macondo exploratory well off the coast of Louisiana. The […]
Where Does the Mineral Estate End and the Surface Begin?
In Lightning Oil Co. v. Anadarko E&P Onshore, LLC, the Texas Supreme Court recently declined to consider an appeal from a Fourth Court of Appeals decision denying Lightning’s request for a temporary injunction that would have blocked Anadarko from drilling through its mineral estate. Although the Court did not state its reasons in declining to […]
Individual Liability in the Oil Patch Under the FLSA
As a follow up to my earlier post, not only was the company (Stuart Petroleum) sued in the overtime lawsuit, but so was the company’s president. You may wonder how a company president might be liable given the fact that we are talking about an entity that was the official “employer,” and corporate law, generally, […]
Can Production Payments Really Outlive Their Oil & Gas Leases? The Supreme Court Will Answer
The Supreme Court of Texas has taken up an appeal that could ultimately change the landscape of oil and gas law and spur a new generation of production payment litigation. Depending on the Supreme Court’s decision, Texas law may in the future hold that production payments can survive the termination of their associated oil and […]