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. …
Oil and Gas Lawyer Blog
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.
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…
The Kildays’ Adventure in Cambodia
Although this has nothing to do with oil and gas, I’d like to share a great story about one of my partners, Doug Kilday. Doug is one of Graves Dougherty’s senior litigators. He and his family are also active members of Covenant Presbyterian Church in Austin. In 2017, the Kildays decided…
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…