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…
I am sometimes asked to evaluate whether a lease has terminated for failure to produce in paying quantities. It is not an easy question to answer. So here is a summary of how “paying quantities” are determined. Basic Rules When an oil and gas lease provides it will remain in…
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…
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The US Department of Interior finalized a rule on Friday increasing royalty rates on oil and gas leases of federal land from 1/8th to 1/6th, and increasing minimum bonus rates from $2/acre to $10/acre. The regulations also increase bonding requirements to secure operators’ obligation to plug their wells. I’ve always…
In 2021 the Texas Legislature created the Texas Produced Water Consortium to study possible beneficial uses of fluid oil and gas wastes. The Consortium produced its report to the Legislature in 2022. I recently ran across a remarkable conclusion in that report: it estimates that in 2019 unconventional tight-oil formation…
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.…
Registration is now open for the firm’s 8th annual seminar for Texas land and mineral owners. Seminar topics will include: Case Law Update Business Courts: What Are They and How Do They work? Produced Water Spills and Orphan Wells Production in “Paying Quantities” Current Legislative/Administrative Issues Geothermal Energy Solar Development…
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…