HB 3794 This bill, signed by the Governor, fixes a problem with the provisions of the Texas Business and Commerce Code that grant a security interest in oil and gas production and proceeds to secure the payor’s obligation to pay royalty owners. I have written about this problem before. Previous…
Articles Posted in Lessor’s Remedies
Consent-to-Assign Provisions in Oil and Gas Leases
Provisions in oil and gas leases requiring the lessor’s consent to assignment of the lessee’s interest are common. A lessor may have reasonable concerns about assignment of the lease, especially if the lessor is also the owner of the surface estate of the leased premises. The lessor may have agreed…
Texas Supreme Court Declines to Address Injunctive Relief as Remedy to Prevent Groundwater Contamination in ExxonMobil v. Lazy R Ranch
On February 24, the Texas Supreme Court issued its opinion in ExxonMobil Corporation v. Lazy R Ranch, LP, et al., No. 15-0270. ExxonMobil v. Lazy R Ranch The 8-0 opinion was authored by Chief Justice Nathan Hecht. The case provides important reminders to landowners who have oil and gas operations…
San Antonio Court of Appeals Denies Cernys’ Nuisance Claim
I have written before about landowners’ efforts to collect damages for personal injury and property damage caused by nearby oil and gas exploration operations on the theory that such activities cause a nuisance. Nuisance is a recognized tort claim. To recover, a person must prove that (1) the person has…
Texas Supreme Court Agrees to Hear Hooks v. Samson
The Texas Supreme Court has granted the plaintiffs’ petition to review a case important for Texas mineral owners, Hooks v. Samson Lone Star. I wrote about this case when it was decided by the Houston First Court of Appeals in 2011. The court of appeals’ opinion reversed a judgment for…
$3 Million Verdict for Nuisance in Barnett Shale Case
There’s lots of buzz about a recent verdict in a case filed by a landowner in Dallas County alleging injuries from air emissions from drilling and production of Barnett Shale wells in Wise County. The case is Lisa Parr v. Aruba Petroleum, Cause No. 11-01650-E, in the County Court at…
Texas Supreme Court Again Reverses Jury Verdict Favoring Royalty Owners
The Texas Supreme Court has once again overturned a jury verdict in favor of royalty owners, finding “no evidence” to support the jury’s finding. The court’s opinion in the case, BP America Production Company, Atlantic Richfield Company and Vastar Resources, Inc. v. Stanley G. Marshall, Jr., et al., No. 09-0399,…
The Importance of Audit Rights in Oil and Gas Leases: Shell v. Ross
I always counsel my clients to provide in their oil and gas leases that they have the right to inspect and copy all documents of the lessee necessary to determine whether royalties have been paid correctly, and to audit the records of the lessee to confirm accurate payment of royalties.…
Texas Supreme Court Asked to Re-examine NGPL v. Pool
A case now before the Texas Supreme Court that addresses issues important to Texas mineral owners. The case, BP America Production Company, et al., v. Stanley G. Marshall, Jr., et al., No. 09-0399, asks the Texas Supreme Court to address the applicability of the laws of adverse possession to mineral…
Accepting Drafts in Payment for Lease Bonus – A Ticking Time Bomb?
The recent volatility in prices for oil and gas leases has raised issues with the time-honored custom in the industry of paying lease bonuses with drafts. Problems have arisin because companies have refused to honor the drafts or because lessors have sought to cancel the transaction after signing and delivery…