In Texas, an oil and gas lease grants to the lessee the fee mineral estate in the leased premises for the term of the lease. The lease provides for an initial term during which the lessee need do nothing in order to keep the lease in effect — called the…
I got the idea for starting this blog from a presentation I made at a meeting of the Texas Land & Mineral Owners’ Association, titled “Checklist for Negotiating an Oil and Gas Lease.” TLMA posted the outline of my presentation on its website. I soon began receiving calls from people…
On August 30, 2013, the Texas Supreme Court decided two cases involving the Episcopal Church of the United States. Last week, the U.S. Supreme Court refused to hear the cases, making the results final. (In case you’re wondering, this has nothing to do with oil and gas. The cases are…
The news is filled with stories predicting the effect of falling oil prices on US production. Good news for the economy, bad news for the Texas oil and gas industry. Will the rig count fall? Will companies go into bankruptcy? Only time will tell. The answer may depend on OPEC. OPEC…
Last week the San Antonio Court of Appeals decided Lightning Oil Company v. Anadarko, No. 04-14-001152-CV, a case involving “mineral trespass.” What is interesting about the case is what the court did not decide. Lightning Oil Company owns two oil and gas leases covering 3,250 acres within the Briscoe Ranch…
The Texas Tribune has created an unusual interactive website with stories about life in the oil patch and the effect of the boom on the lives of those who live and work in the areas affected. Take some time and explore it. http://apps.texastribune.org/shale-life/eagle-ford-air/
Chesapeake has asked the Texas Supreme Court to hear its appeal of Chesapeake v. Hyder, decided by the San Antonio Court of Appeals in March of this year. The Supreme Court has asked the parties to file briefs on the merits, and Chesapeake filed its brief last week. Although the…
Last week the Texas Supreme Court heard oral arguments in Steadfast Financial v. Bradshaw, No. 13-0199. The case presents the court with another opportunity to grapple with an issue that Texas courts have struggled with since the court first addressed it in 1937 – what duty does the owner of…
Trail Enterprises’ efforts to collect an inverse condemnation judgment against the City of Houston have finally come to an end. The US Supreme Court has refused to hear its case. Trail Enterprises’ story is instructive to parties who may be thinking of challenging cities’ decisions to ban drilling within their boundaries. The…
A new study published by The University of Texas’ Bureau of Economic Geology compares the amount of water used in producing oil from shale plays to the water used in producing oil from conventional reservoirs. The study concludes that water use for conventional and unconventional oil production is about the…