The Texas Supreme Court heard argument last week in a fee dispute between Albert Hill Jr., an H.L. Hunt heir, and one of his attorneys, Gregory Shamoun. Albert G. Hill, Jr. v. Shamoun & Norman, LLP, No. 16-0107. The Dallas Court of Appeals reversed a take-nothing judgment and awarded Shamoun…
Oil and Gas Lawyer Blog
Courts Reject Trump Administration Efforts to Delay Implementation of Obama Methane Emission Rules
The DC Court of Appeals and the US District Court for the Northern District of California have struck down orders of the EPA and the Bureau of Land Management postponing compliance dates for the Obama administration’s rules requiring the oil and gas industry to monitor and reduce methane emissions. Both…
Texas Supreme Court Denies Motion for Rehearing in BP America Production Co. v. Red Deer Resources, LLC
On September 22, the Texas Supreme Court refused to reconsider its opinion in BP America v. Red Deer Resources, No. 15.0569 – after some 16 amicus briefs and letters were filed urging the court to grant Red Deer’s motion for rehearing. The Court addressed the construction of a shut-in royalty…
Supreme Court Considers Two Cases on Retained Acreage Clauses
The Texas Supreme Court has reconsidered its decision not to hear two appeals involving retained acreage clauses: XOG Operating, LLC v. Chesapeake Exploration Limited Partnership, No. 15-0935, and Endeavor Energy Resources, L.P. v. Discovery Operating, Inc., No. 16-0155. The Court initially refused to consider the cases, after ordering briefs on…
Permian Basin Well Density
From UT Austin Bureau of Economic Geology, Credit: Bridget Scanlon. Click to enlarge.
New Challenge to Pipeline Eminent Domain Powers
Landowners in Texas challenged the right of pipelines to condemn easements for intrastate lines in Texas in Texas Rice Land Partners, Ltd. v. Denbury Green Pipeline-Texas, LLC, decided in 2011. The Texas Supreme Court held that a pipeline seeking to exercise the power of eminent domain must prove that the…
U.S.-Mexico Energy Trade
From OilPrice.com: Last year, the value of U.S. energy exports to Mexico was US$20.2 billion, while the value of U.S. energy imports from Mexico was only US$8.7 billion, according to the EIA. On the other hand, Mexico’s oil and gas output is 40 percent off its peak levels, an S&P…
Texas Outfitters v. Nicholson – the Duty of the Holder of the Executive Right to Lease
Last May, the San Antonio Court of Appeals issued an opinion in Texas Outfitters Limited v. Nicholson, No. 04-16-00392-CV, addressing the duty of holders of the mineral executive right to its non-executive mineral owner – a case now pending on application for writ of error in the Texas Supreme Court.…
Shrinking Sands
The rising cost of sand is causing producers to reduce its use in fracking. See article from Reuters. Reduced demand for sand could cool the Permian sand mine boom. According to the Houston Chronicle, the lower cost of Permian sand could cut operators’ sand costs by 40%.
Monitoring Lease Compliance
With the drop in oil prices has come a wave of litigation over underpayment of royalties. Multiple suits have been filed against Repsol (formerly Talisman) over its royalty payments in the Eagle Ford. Multiple suits against Devon for royalty underpayment have been consolidated into a multi-district docket in San Antonio.…