Today is Constitution Day, the day in 1787 when 39 of the 55 members of the Constitutional Convention signed the new constitution they had penned. Today the entire original constitution will go on display for the first time in the National Archives Museum. Today reminded me of a quote of…
Oil and Gas Lawyer Blog
Texas Supreme Court agrees to hear easement-by-estoppel case
Today the Supreme court accepted the petition for review in Boerschig v. Rio Grande Electric Cooperative, No. 24-0213, a case in which the trial court granted an easement by estoppel based on a jury verdict. In 2002 Boerschig purchased the 6,397-acre U-Bar Ranch. At the time there was a 1.6…
Supreme Court denies petition in Basic Energy Services v. PPC Energy
Today the Texas Supreme Court denied PPC’s petition for review in PPC Energy v. Basic Energy Services, No. 25-0061. I wrote about the opinion of the El Paso Court of Appeals, which reversed and remanded a trial court judgment of $13 million against Basic after jury trial . Basic operates…
Clifton v. Johnson — Another fixed vs. floating royalty case lands in Texas Supreme Court
Today the Texas Supreme Court agreed to decide another dispute over whether a conveyance is of a fixed or floating royalty. No. 23-0671, Clifton v. Johnson. The El Paso Court of Appeals held that the instrument in question conveyed a floating royalty – a fraction of the royalty. 2023 WL…
Coffeyville Resources v. ExxonMobil Pipeline Company: What is the effect of a “void” assignment?
ExxonMobil Pipeline owned a 1944 pipeline easement crossing a 126.7-acre tract. Its predecessor Humble Pipeline constructed an 11-mile pipeline crossing the tract. In 2000 ExxonMobil sold the pipeline to Salter Creek Resources. The assignment provided that “This Agreement may not be assigned, in whole or in part, without the prior…
Cromwell v. Anadarko – Texas Supreme Court weighs in on construction of lease habendum clause
Suppose Company A obtains an oil and gas lease on Blackacre from the owner of a 1/6 mineral interest in Blackacre, and Company B obtains and oil and gas lease from the owner of the other 5/6 mineral interest. That makes Company A and Company B co-tenants leasehold mineral estate.…
O. Henry and the Texas General Land Office
I recently ran across a publication containing two stories by O. Henry, purchased at the Capitol Visitors Center in Austin. The stories center on the Texas General Land Office, where O. Henry (then William Sydney Porter) worked as a draftsman between 1887 and 1891. The stories led me down a…
Texas Supreme Court Opines on Ownership of Produced Water
The Supreme Court has handed down its opinion in Cactus Water Services, LLC v. COG Operating, LLC, a dispute over ownership of produced water. Its holding: COG, the operator, owns the produced water. Between 2005 and 2014, the Colliers granted leases covering 37,000 acres of land in Reeves County to…
Texas Primacy for Issuance of Class VI Injection Wells
The EPA has issued notice that it proposes to approve Texas’ application for authority to issue permits for Class VI injection wells (wells to be used for CO2 sequestration projects). The Trump administration had previously instructed EPA to accelerate consideration of states’ applications for primacy for Class VI wells. A…
Texas Legislature Addresses Unplugged Wells
There are at least 150,000 unplugged inactive oil and gas wells in Texas, and the number is growing. Of these, almost 9,000 are “orphan wells,” having no active operator because the owner has gone out of business or gone bankrupt. Senate Bill 1150, passed by the Legislature, is the Legislature’s…