Chesapeake Energy has obtained City approval for a “master drilling plan” that lays out plans to drill 69 horizontal wells from seven drilling locations within the City of Fort Worth. The plan identifies the drilling locations and the gathering lines, and how produced water will be disposed of. The plan shows how…
In a previous post I discussed a recent Texas Supreme Court case, Exxon v. Emerald, reversing a multimillion-dollar judgment against Exxon for intentionally sabatoging wells so that they could not be re-entered. This nudged me to look at other royalty-owner related cases handed down by the Texas Supreme Court over the…
Renewable energy is a hot topic in the new Obama Administration. Wind Energy is being touted, especially in Texas, as a solution to global warming and U.S. dependence on foreign oil. Wind farms have sprouted all across Texas. Texas is now the leading wind energy producing state. Texas utilities are about…
On March 27, the Texas Supreme Court issued its opinions in two related cases, both styled Exxon Corporation v. Emerald Oil & Gas Company. The cases were argued before the court more than two years ago, and the decisions were awaited with much anticipation. The Court reversed a judgment against Exxon…
Exploration companies have traditionally used bank drafts to pay bonuses for oil and gas leases. Since drafts look a lot like a check, they can be misleading to mineral owners. Some mineral owners’ recent experiences with dishonored drafts have highlighted the problems with use of these financial instruments. A draft…
Last week I discussed Wagner & Brown v. Sheppard, a recent Texas Supreme Court case that involved a lease termination clause. Sheppard’s lease in that case provided that, if royalties were not paid to her within 120 days after first production, the lease would automatically terminate. That is exactly what…
A recent decision of the Texas Supreme Court, Wagner & Brown, Ltd. v. Sheppard, has caused quite a stir in oil and gas legal circles. The court was faced with a question never before answered by a Texas appellate court, what is known as a “case of first impression.” Such…
Landowners in Texas are often surprised to learn that oil companies have no obligation to compensate them for use of their lands, or to restore the lands after their use, absent a contractual requirement to do so in their oil and gas lease. The typical oil-company form lease provides only…
The last few years have seen a boom in the oil and gas exploration business in the U.S., driven by new technologies that have allowed exploitation of “unconventional” resources for gas and oil. These resources are often called “resource” plays, because the oil and gas is being produced from shale…
Last week, in Post-Production Costs in Texas-Part II, I discussed the Texas Supreme Court’s decision in Heritage Resources v. NationsBank regarding the deductibility of post-production costs from lessor’s royalties under an oil and gas lease. Justice Priscilla Owen (now a judge on the U.S. Court of Appeals for the Fifth…