Last week the Texas Supreme Court agreed to hear Texas Outfitters Limited v. Carolyn Grace Nicholson, No. 17-059, from the San Antonio Court of Appeals. I wrote about this case when the Court of Appeals decided it last year. Interesting facts. The issue is whether the holder of executive rights…
Articles Posted in Recent Cases
Another Retained Acreage Clause Case Arrives in Supreme Court
Litigation of retained acreage clauses seems to be on the rise. Apache Deepwater, LLC, v. Double Eagle Development, LLC, decided by the El Paso Court of Appeals last year, is now before the Supreme Court on petition for review, and the Court has asked the parties to file briefs on…
Royalty Owners and Cotenancy: Devon Energy Production Co. v. Apache Corporation
In Devon v. Apache, No. 11-16-00105-CV, the Eleventh Court of Appeals sheds some light on a vexing problem that remarkably has never been addressed by a Texas court. To understand the problem, consider the facts in Devon v. Apache: Norma Jean Hester leased her one-third mineral interest in land in…
Reservations vs. Exceptions
On April 27 the Texas Supreme Court issued its opinion in Perryman v. Spartan Texas Six Capital Partners, Ltd., No. 16-0804. The dispute was over ownership of the royalty interest in 206 acres of land in Montague County and construction of a royalty reservation in a conveyance of the property. …
Texas Anti-SLAPP Statute Used in Oil & Gas Lease Dispute
Lona Hills Ranch, LLC v. Creative Oil & Gas Operating, LLC, et al., No. 03-17-00743-CV, Austin Court of Appeals. Creative Oil & Gas held an oil and gas lease on Lona Hills Ranch’s property. Lona Hills concluded that the lease had expired, but Creative disagreed and filed for a permit…
Texas Supreme Court Opines on Retained Acreage Clauses
Last Friday the Texas Supreme Court issued opinions in XOG Operating, LLC v. Chesapeake Exploration Limited Partnership et al., No. 15-0935, and Endeavor Energy Resources, L.P. et al. v. Discovery Operating, Inc. et al., No. 16-0155. In both cases, the Court affirmed the decisions of the trial courts and courts…
Superior Court of Pennsylvania Disagrees with Texas Supreme Court on Whether Rule of Capture Applies to Hydraulic Fracturing
On April 2, the Superior Court of Pennsylvania issued its opinion in Briggs v. Southwestern Energy Production Co., 2018 PA Super 79, No. 1351 MDA 2017. It held that “hydraulic fracturing may constitute an actionable trespass where subsurface fractures, fracturing fluid and proppant cross boundary lines and extend into the…
When Does No Warranty Mean No Warranty?
The Texas Supreme Court recently decided JPMorgan Chase Bank v. Orca Assets GP, LLC, No. 15-0712, an interesting exposition on the value and risks of including no-warranty language in an oil and gas lease. JPMorgan was trustee of the Red Crest Trust, which owns about 40,000 acres of minerals in…
ConocoPhillips v. Koopmann: does a reserved term royalty interest violate the Rule Against Perpetuities?
Last week the Texas Supreme Court issued its opinion in ConocoPhillips Co. v. Koopmann, No. 16-0662. Its opinion rejected Burlington’s argument based on the Rule Against Perpetuities. Strieber sold 120 acres in Dewitt County to Koopmann, reserving one-half of the royalty for a term of 15 years and as long…
Challenge to Devon Allocation Well
Our firm filed suit last week to challenge Devon Energy Production Company’s permit for an “allocation well” in Ward County. Monroe Properties, Inc., et al. v. Railroad Commission of Texas, Cause No. D-1-GN-18-001111, 53rd District Court, Travis County. A copy of the petition may be viewed here. Monroe v. RRC…