Last week MineralSoft published a webinar in which I was interviewed by Jay Snodgrass, VP of MineralSoft, about royalty underpayments. You can listen to it here. I met Jay when MineralSoft was just getting started. It is a software company providing solutions for royalty owners to manage their interests. MineralSoft…
Oil and Gas Lawyer Blog
Juneteenth
Last Saturday our firm participated in the annual Austin parade celebrating Juneteenth, the day in 1864 it was announced in Texas that all slaves were free. The parade is the biggest in Austin, a celebration of freedom that has become a state holiday in Texas and 44 other states. June…
What Happens to Unclaimed Royalties?
A reader alerted me to a Texas Supreme Court mandamus proceeding about unpaid royalties, In Re The Estate of Ebbie Edward Allen, Jr., No. 19-0027. Lawyers for the Relator asked the court to require the Texas Comptroller to audit Chesapeake and require it to deposit royalties not paid to Mr.…
Burlington v. Texas Crude – another Supreme Court Case on Post-Production Costs
The Texas Supreme Court has denied motion for rehearing of its opinion in Burlington Resources Oil & Gas Company v. Texas Crude Energy, No. 17-0266. The case addresses deductibility of post-production costs in the context of an overriding royalty. The case may, however, have implications for post-production-cost deductions in oil…
Death of Eminent Domain Bill and Other Legislative Maneuvers
Senate Bill 421, reforming how pipelines exercise the power of eminent domain to condemn right-of-way, died at the end of the Texas legislative session after Rep. Tom Craddick sought to make amendments opposed by its author, Sen. Lois Kolkhorst. Kolkhorst said Craddick “seized the legislation” from its house sponsor and…
The TPLT Proxy War
A couple of years ago I wrote about the history of Texas Pacific Land Trust (TPLT), one of the largest landowners in Texas. The trust was formed out of the bankruptcy of Texas Pacific Railroad, which received 3.5 million acres of land in West Texas in consideration for building the…
Texas Railroad Commission Sued to Force Regulation of Pipeline Route
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…
Increased Gas Flaring in the Permian
Rystad Energy has released an analysis of gas flaring in the Permian Basin. Operators flared 533 million cubic feed per day during the fourth quarter of 2018 – more than some states use in a year.The flared volumes represented an average of less than 5% of all gas produced. But…
Players in the Permian
Below is a Drillinginfo map of players in the Permian. Also see Forbes article here. Chevron’s position is derived from Texas Pacific Land Trust‘s spinoff of minerals under TPLT’s lands, subsequently acquired by Texas. It owns fee minerals in those lands. Click on image to enlarge. As Forbes says, ripe…
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…