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.
Offset Wells and the Ongoing “Fixed”-Versus-“Floating” Royalty Saga
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 […]
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.
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 […]
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 […]
Texas Court of Appeals Decides Major Mineral Ownership Row
On December 14, 2017, the Corpus Christi Court of Appeals decided Haywood WI Units, Ltd. v. B&S Dunagan Investments, Ltd., et al., a long-running dispute over the ownership of minerals in Liberty County. The decision addresses mineral deed interpretation issues and the recoverability of attorneys’ fees under the declaratory judgment statute where non-possessory interests such […]
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.
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 […]