The US Department of Interior finalized a rule on Friday increasing royalty rates on oil and gas leases of federal land from 1/8th to 1/6th, and increasing minimum bonus rates from $2/acre to $10/acre. The regulations also increase bonding requirements to secure operators’ obligation to plug their wells. I’ve always…
U.S. District Judge Matthew Kacsmaryk, in Amarillo, recently wrote an opinion in Mayo Foundation for Medical Education and Research v. BP America Production Company, 447 F.Supp.3d 522 (March 3, 2020) dealing with the enforceability of a lease provision requiring the lessee to obtain the lessor’s consent to assign an oil…
I first wrote about Chesapeake Energy in 2009, and I’ve written multiple posts about the company since. Founded in 1983 by two Oklahoma landmen, Aubrey McClendon and Tom Ward, Chesapeake grew into one of the largest natural gas producers in the country. During that time the company transformed natural gas…
Rystad Energy has released an analysis of gas flaring in the Permian Basin. Operators flared 533 million cubic feed per day during the fourth quarter of 2018 – more than some states use in a year.The flared volumes represented an average of less than 5% of all gas produced. But…
The Texas Tribune is joining with the Center for Public Integrity to publish a series of articles on the Permian Basin. Called “Blowout,” it is the result of eight months of study of the impact of the Permian oil boom. The first article can be found here. The International Energy…
Our firm is hosting our 5th annual seminar for Texas land and mineral owners on topics of interest in oil and gas law. We have a great lineup of speakers, including Idalia Romanos on royalty audits, Peter Huddleston on current shale development activity in Texas, Mary Keeney providing a case…
Texas Land & Mineral Owners Association is having its Statewide Members Meeting on October 11 in San Antonio. Information here. It is a good organization and a good meeting. Join up and attend.
The rising cost of sand is causing producers to reduce its use in fracking. See article from Reuters. Reduced demand for sand could cool the Permian sand mine boom. According to the Houston Chronicle, the lower cost of Permian sand could cut operators’ sand costs by 40%.
I served as a clerk for Justice Ross Doughty from 1975-1976, after graduating from UT Law School. Justice Pope was serving on the court at the time. Jack Pope served on the Supreme Court from 1964 until his retirement in 1985, and served as Chief Justice from 1982 to 1985,…
This article appeared yesterday in the New York Times: Land Rush in Permian Basin, Where Oil Is Stacked Like a Layer Cake. Exxon announced a $6.6 billion deal to buy the Bass family’s position in the Permian. Noble Energy agreed to buy Clayton Williams Energy for $2.7 billion, acquiring Williams’…