The Texas Supreme Court, beginning in 2017, began issuing a number of decisions altering the analysis for the interpretation of oil-and-gas agreements, principally mineral leases and conveyances. I wrote about many of these opinions as they were released: “Texas High Court Ruling Sows Confusion On Mineral Deeds” (Wenske v. Ealy) (Law360, subscription required)—chipping away at […]
SCOTX Issues Another Key Decision for Interpreting Oil-and-Gas Contracts
Podcast: Royalty Underpayment Class Actions; Duties of the Mineral Executive; and Anti-Pooling Clauses
In the latest episode of our energy law podcast, we discuss troubling developments at the intersection of class actions and consumer protection laws in royalty underpayment cases; the Texas Supreme Court’s latest pronouncements on the duties of executive mineral rights owners to non-executives; and a new appellate court decision that addresses when the acceptance of […]
SCOTX Hands Down Decision on Mineral Executive’s Obligations to Non-Executives
Last month, the Texas Supreme Court issued a decision that addresses the vexing situation in which the owner of the executive rights also owns the surface, but none (or virtually none) of the minerals. What is the duty of the executive rights holder in this situation?
Lessor’s Acceptance of Royalty Payments Did Not Waive Anti-Pooling Clause
The San Antonio Court of Appeals recently determined that the acceptance of royalty payments will not necessarily operate as a waiver of a mineral lease’s anti-pooling provision.
Podcast: Royalty Class Actions and Farmout Agreements
In the latest episode of our energy law podcast, we discuss several appellate decisions from Texas that touch on class actions and farmout agreements.
Texas Supreme Court to Mineral Purchasers: Buyer Beware!
In the latest episode of our energy law podcast, learn about offset wells and liquidated damages as unenforceable penalties; the arrival of anti-SLAPP in the oil patch; and the Texas Supreme Court’s warning to mineral purchasers: buyer beware.
Can Consent Be Withheld Arbitrarily in the Oil Patch?
The Texas Supreme Court heard oral arguments last week in a case that has the potential to alter the landscape of the industry.
Fifth Circuit Sets Dangerous Precedent for Oil-and-Gas Class Actions
Earlier this week, in Seeligson v. Devon Energy Production Co. LP, the Fifth Circuit reversed a Texas federal court’s decision to certify a class of mineral lessors who had sued Devon Energy for the alleged underpayment of royalties. While at first blush this may sound like a victory for the industry, precisely the opposite is […]
Offset Wells and the Ongoing “Fixed”-Versus-“Floating” Royalty Saga
In the latest episode of our energy law podcast, learn when an “offset well” is not an offset well, according to the Texas Supreme Court. Also, get up to speed on the latest installment in the ongoing “fixed”-versus-“floating” royalty saga that continues to confound courts and counsel across the Lone Star State.
SCOTX: When An “Offset Well” Is Not An Offset Well
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 […]