Hays County and the City of Kyle, and private landowners, have sued Kinder Morgan, the Texas Railroad Commission and its commissioners over the route for Kinder Morgan’s Permian Highway Pipeline, a gas pipeline 42 inches in diameter, set to cross through the Texas hill country and Hays County. The suit…
Articles Posted in Recent Cases
Strickhausen v. Petrohawk – Ratification of Pooled Units
The San Antonio Court of Appeals handed down its opinion last week in Strickhausen v. Petrohawk Operating Company, No. 04-18-00636-CV. The issue: Did Ms. Strickhausen ratify a pooled unit not authorized by her lease, or is she estopped from contesting the validity of the unit, because she accepted royalty checks…
Texas Outfitters v. Nicholson and the Duty of the Holder of the Executive Right
Last week the Texas Supreme Court handed down its opinion in Texas Outfitters, Limited, LLC v. Nicholson, No. 17-0509, once again addressing the duty of the holder of executive rights to minerals owned by another. The Court affirmed a judgment of $867,654.32 plus interest and costs against Texas Outfitters for…
San Antonio Court of Appeals interprets an express offset clause in an oil and gas lease
In Bell v. Chesapeake Energy Corporation, No. 04-18-00129-CV, the San Antonio Court of Appeals heard a permissive accelerated appeal of an issue addressed by the trial court in a multi-district litigation brought by many royalty owners in the Eagle Ford against Chesapeake, In re: Chesapeake Eagle Ford Royalty Litigation, involving…
Takeaway Capacity in the Permian and Reflections on Judicial Elections in light of Murphy v. Adams
Wade Caldwell, San Antonio attorney and President of NARO-Texas, published the article below in the recent NARO newsletter. He has kindly allowed me to republish it here. And Happy New Year. The Take Away By: Wade Caldwell, President, NARO-Texas Two thoughts (or takeaways) on one of the most flexible words…
Murphy v. Adams – What is an “offset well”?
The Texas Supreme Court denied the landowners’ motion for rehearing last Friday in Murphy v. Adams, rejecting their claim that Murphy Exploration had breached their oil and gas lease by failing to drill an offset well or pay liquidated damages. The Court was divided 5-4 on the issue when it…
Seeligson v. Devon – Plaintiffs (Almost) Get Class Certification
The U.S. Court of Appeals for the Fifth Circuit recently handed down its opinion in Seeligson v. Devon Energy Production Co., Cause No. 17-10320. The case is an appeal from a decision in the District Court for the Northern District of Texas certifying a class of royalty owners to sue…
Devon v. Apache – Royalty and the Non-Consenting Co-Tenant
The Texas Supreme Court recently refused to consider the case of Devon Energy Production Company v. Apache Corporation, decided by the Eastland Court of Appeals – 550 S.W.3d 259. The case presents issues that, remarkably, have not previously been considered by a Texas appellate court. Norma Jean Hester leased her…
Three Supreme Court Cases to Watch
Two cases were argued in the Texas Supreme Court last week that bear watching, and a third interesting case is pending in the court on petition for review. No. 17-0266, Burlington v. Texas Crude Texas Crude and Burlington entered into a joint development agreement covering leases Texas Crude had acquired…
“Royalty Lease” – Lessor Beware
In Ridge Natural Resources v. Double Eagle Royalty, recently decided by the El Paso Court of Appeals, James and Jolinda McDaniel signed a “Royalty Lease” to Ridge, reading as follows: Oil and Gas Royalty Lease THIS LEASE AGREEMENT is made as of the 10th day of October, 2016 between [the…