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
The Neverending Story: “Fixed” vs. “Floating” Royalties in Texas
The Texas Supreme Court and our Courts of Appeals have now been struggling for years with the elusive distinction between “fixed” and “floating” royalties. In application, the difference between the two can have drastic and—depending on your position in a mineral title dispute—potentially catastrophic consequences.
Condemnation and Eminent Domain in the Oilfield and Beyond
In the latest episode of our energy law podcast, the Managing Partner of KRCL’s Houston office, Marcy Rothman, addresses recent developments on a topic that pipelines and other energy companies confront on a regular basis: condemnation and eminent domain.
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: 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 […]
Everything You Need to Know About Oil and Gas Law—2Q17 Edition
Earlier this year, we brought you our first quarter update on major developments in oil and gas law in Texas and throughout the country. Now, we are back with our second quarter update. We began 2Q17 with a discussion of the intersection of the oil patch with class actions and the Fair Labor Standards Act; the federal […]
Jury Returns Defense Verdict for Operator That Deducted Affiliate Fees from Royalties
In this week’s edition of our energy law podcast, you’ll learn about multiple decisions that came out of the Texas Supreme Court on Friday, which can directly impact your operations in the oil patch, as well as one of the first jury verdicts addressing the increasing trend of mineral lessors challenging the deduction from their […]
Texas Supreme Court Upends Traditional Rules of Construction for Mineral Deeds
On Friday, a deeply divided Texas Supreme Court—in a surprising turn of events—disturbed long-standing rules for interpreting mineral conveyances in its 5-4 decision in Wenske v. Ealy. There, when the Wenskes bought property in Lavaca County in 1998, the sellers kept for themselves a 1/4th non-participating royalty interest (the “NPRI”). Five years later, the Wenske […]