Our firm represented the Opielas in two cases involving a Magnolia horizontal well in Karnes County: a suit against Magnolia in Karnes County, and a suit against the Texas Railroad Commission in Travis County. In both cases the Opielas contended that Magnolia had no right to drill a horizontal well…
Articles Posted in Pooling
BPX v. Strickhausen: When does acceptance of royalty constitute ratification of a pooled unit?
Landowners are often faced with a conundrum: can they accept a royalty check if they believe it is in the wrong amount? Ms. Strickhausen owns a half interest in the minerals under a tract of land in La Salle County. Her minerals are subject to a lease owned by BPX…
The Relation Between Lease Contracts and Forced Pooling Statutes
A recent case from the Ohio Court of Appeals, Fifth Appellate District, raises some interesting questions about forced pooling. The case, American Energy – Utica, LLC v. Fuller, Case No. 17 CA 000028, involves an oil and gas lease covering 40 acres in Guernsey County, Ohio, dated in 1981. The…
Double-Pooling? Samson Exploration v. T.S. Reed Properties, Inc.
In a case of first impression, the Texas Supreme Court has held that the same land can be included in two pooled units, and that the lessee must pay royalties on the same well to the royalty owners in both pooled units. Samson Exploration v. T.S. Reed Properties, Inc., 2017…
What Landowners Need to Know about Field Rules
Two recent appellate opinions illustrate why landowners and their counsel need to know the basic fundamentals of field rules and how they can affect provisions in oil and gas leases. I wrote about those cases in 2015. Both involve the interaction between field rules and lease provisions. ConocoPhillips Co. v.…
Klotzmans Appeal RRC EOG Allocation Well Ruling
The Klotzman mineral owners have appealed the Texas Railroad Commission’s order granting EOG a permit to drill an “allocation well” on their land. A copy of the petition can be viewed here: Klotzman Petition.pdf. Our firm represents the Klotzmans. For my previous posts about allocation wells and the Klotzman case,…
Proposal for Decision Issued in Klotzman Allocation Well Permit Contest
The examiners who heard the Klotzmans’ protest of EOG Resources’ application for an allocation well permit have issued their Proposal for Decision in the case. A copy of the PFD can be viewed here: 2013-06-25 PFD EOG Klotzman (2).pdf Our firm represents the protestants in the case. For my prior…
More on Production Allocation Wells
Production allocation wells continue to be a simmering issue in Texas. Last Friday I attended the Ernest E. Smith Institute on Oil, Gas and Mineral Law sponsored by the University of Texas School of Law, and one of the topics presented was a paper titled “Drafting Production Sharing Agreements.” The paper…
Update: Donnell case, Allocation Wells
The Texas Supreme Court denied the LaSalle Pipeline’s petition for review in LaSalle Pipeline v. Donnell Lands, leaving the San Antonio Court of Appeals’ original opinion intact. See my discussion of the case here. The trial court awarded $468 per rod $28.36/foot) for an easement for a 16-inch pipeline. The…
More About Allocation Wells
In a prior post, I wrote about a new development at the Texas Railroad Commission: granting permits for “allocation wells” – horizontal wells drilled across lease lines without pooling the leases. Since I wrote that post, our firm was retained to represent the parties protesting EOG Resources’ application for a permit…