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…
Oil and Gas Lawyer Blog
Two Charts
Here’s another flow diagram, from Lawrence Livermore National Laboratory, showing sources and uses of energy in the US, sent to me by a client. Note how much of our energy comes from fossil fuels – natural gas, coal and petroleum. We are addicted to hydrocarbons, and will be for some…
NARO Texas Convention July 18-20 in San Antonio
NARO Texas‘ convention is being held July 18-20 at the Hyatt Regency Hotel on the Riverwalk in San Antonio. Several good speakers will be presenting on topics including how to negotiate retained acreage and pooling clauses, how to handle mineral buyers, and developments in horizontal drilling. I will be speaking…
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. …
EIA US Energy Flow
I love these energy flow diagrams from the Energy Information Administration. Below is the one for total energy sources and uses. EIA has others for crude oil, natural gas, coal and electricity. Click to enlarge.Here’s the flow chart for natural gas. Note how much US gas comes from shale gas…
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…
MD America’s Remarkable Use of Allocation Wells
Here is a permit plat for a new MD America Well in Madison County. All wells shown, including the new well, are in the MadisonVille, W. (Woodbine -A-) Field. Every well but two on the plat is an allocation well. Click on image to enlarge.