In Hamilton v. ConocoPhillips, the Corpus Christi Court of Appeals construed a Production Sharing Agreement – to my knowledge the first appellate court to do so. A Production Sharing Agreement is an agreement between mineral owners and an operator to allow the operator to drill a horizontal well whose lateral…
Our firm represents the Opielas, who are involved in a dispute with the Railroad Commission and Magnolia Oil & Gas over a horizontal well located partly on the Opielas’ property. The case has made its way from the Commission to the trial court in Travis County, then to the Austin…
In re Dallas County, Texas and Marian Brown, in her official capacity as Dallas County Sheriff, No. 24-0426, Texas Supreme Court, filed May 23, 2024. In 2023 the Texas legislature passed Senate Bill 1045. The bill creates a new system of “business courts” having jurisdiction of high-stakes business cases. Notably,…
Today the Texas Supreme Court decided Carl v. Hilcorp Energy Co, No. 24-0036. Its opinion addresses certified questions submitted to it by the US Fifth Circuit Court of Appeals concerning a class action suit pending in that court. The Carls’ lease provided for payment of gas royalty based on its…
Yesterday the US Supreme Court issued its opinion in DeVillier et al. v. Texas, No. 22-913, allowing 120 landowners to proceed with their takings claims against the State. I wrote about this case when the Court agreed to hear it. The Summary of facts in the Court’s Syllabus describes the…
In January the US 5th Circuit Court of Appeals submitted a “certified question” to the Texas Supreme Court. Federal courts have jurisdiction over cases involving only state-law issues if the parties are from different states – diversity jurisdiction. This is one such case. Carl v. Hilcorp Energy Company, No. 24-0036.…
This year the Texas Supreme Court decided Van Dyke v. The Navigator Group, trying to give some structure to cases construing conveyances and reservations of royalty interests-whether fixed or floating. I wrote about the case last February. Since then two court of appeals cases have grappled with the issue: Royalty…
Last year the Texas Supreme Court decided Mitchell v. MAP Resources, holding that a mineral owner whose interest was sold at a tax foreclosure could collaterally attack the judgment and introduce extrinsic evidence that he had not been properly served with notice of the suit and therefore was deprived of…
In this case, decided last April, the Texas Supreme Court held that the force majeure clause in an oil and gas lease could not be relied on to extend the date by which a well had to be commenced to keep the lease in force. The facts are these: MRC…
Twenty years ago I wrote an article, “Issues Concerning Royalty Valuations and Deductions,” published in the Petroleum Accounting and Financial Management Journal. One of those issues I discussed was the recurring problem of post-production cost deductions. In the article I contrasted the approaches to lease construction illustrated by two cases:…