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Oil and Gas Lawyer Blog

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The Railroad Commission and the Coal Industry

Excellent investigative reporting by Texas Tribune on how the Texas Railroad Commission fails to enforce state and federal laws requiring restoration of coal mines. “Texas coal companies are leaving behind contaminated land. The state is letting them.” Mirrors my experience with trying to get the RRC to force E&P companies…

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Arkansas Case On Post-Production Costs

A U.S. District Court in Arkansas decided a case in 2016 that a client sent me, Whisenhunt Investments, LLC v. Exxon Mobil Corp., 2016 WL 7494266, No. 4:13cv00656 JM, Eastern District of Arkansas, Western Division, raising an interesting issue on post-production costs. Arkansas has forced pooling. The forced pooling statute…

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Study Concludes Some Earthquakes in West Texas Likely Caused by Fracing

A study released by TexNet concludes that “some earthquakes in west Texas are more likely due to hydraulic-fracturing than salt-water disposal.” TexNet is a seismic monitoring program run by the University of Texas and funded by the legislature as a result of unusual earthquake activity in several areas of Texas…

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When is a contract provision a liquidated damages clause, and when is a liquidated damages clause an unenforceable penalty?

Two recent court of appeals cases address the enforceability of liquidated damages clauses:  TEC Olmos, LLC v. ConocoPhillips Company, and Fairfield Industries v. EP Energy E&P Company. The Texas Supreme Court requested the parties in TEC Olmos to file briefs on the merits but recently denied review. In EP Energy,…

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Cimarex v. Anadarko – Is a lease held by production if the lessee does not participate in the well and there is no operating agreement?

Last March the El Paso Court of Appeals decided Cimarex Energy v. Anadarko Petroleum, No. 08-16-00353-CV.  The facts are these: Cimarex leased a 1/6th interest in 440 acres in Ward County. Anadarko leased the remaining 5/6ths.  Cimarex asked Anadarko to let Cimarex participate in wells on the leases under a…

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Produced Water Supersystems

H2O Midstream recently announced its acquisition of “produced water infrastructure” from Sabalo Energy in Howard County – 37 miles of pipeline, nine salt water disposal wells, four Ellenburger salt water disposal well permits, and other assets. This brings H2O Midstream’s produced water network up to a combined “supersystem” for handling…

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Texas Supreme Court Opines on Consent-to-Assign Provision

  In 2017 I wrote about consent-to-assign provisions in oil and gas leases, and I commented on a case decided by the Tyler Court of Appeals that year addressing such provisions, Carrizo Oil & Gas v. Barrow-Shaver Resources, 2017 WL 412892. In December last year, the Texas Supreme Court wrote…

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Chesapeake v. Bell – Another Decision Construing an Express Drainage Offset Clause

Last March the San Antonio Court of Appeals handed down its decision in Bell v. Chesapeake Energy, No. 04-18-00129-CV. Chesapeake has asked the Texas Supreme Court to review the case. The facts bear a resemblance to Murphy v. Adams, decided by the Supreme Court last year. Both involve construction of…

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