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Energy & the Law

Category Archives: Litigation

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Securities Fraud – a Lesson for Promoters

Posted in Litigation, Regulations

We discussed SEC v. Arcturus et al last week and promised more. Here it is. Did defendants commit securities fraud? It doesn’t matter. Violations of Sections 5 of the Securities Act and 15.A of the Exchange Act are strict liability offenses; the defendant’s state of mind is not a consideration.  Thus, because they sold unregistered securities… Continue Reading

Texas Supreme Court Clarifies Nuisance Law

Posted in Litigation

Gardiner v. Crosstex North Texas Pipeline LLC, has brought clarity to Texas nuisance law. It took the Texas Supreme Court 54 pages; we have it in under 600 words. (We explained the lower court case here.) “Nuisance” now refers, not to a defendant’s conduct or a legal claim or cause of action, but to a type… Continue Reading

A Development in Trade-Secret Cases

Posted in Contract Disputes, Litigation

Co-author Skyler Stuckey The big trade-secret case, Southwestern Energy v. Berry-Helfand, reported on these pages here and here, has been worked over by the Texas Supreme Court. Highlights: Lack of certainty in damages does not preclude recovery. A “Flexible and imaginative” approach to damages in trade secret cases has its limits For the limitations clock to begin… Continue Reading

A Corporate Opportunity? … Stolen?

Posted in Litigation

Co-author Alexandria Moore If you want to get to the meaning of a case, one exercise is to put yourself in the shoes of one participant or the other and see how you react to the events. (This also works well with Bible stories, by the way.) Last week we discussed Huff Energy fund LP v. Longview Energy… Continue Reading

What is a Corporate Opportunity?

Posted in Litigation

Co-author Alexandria Moore Let’s say two fellows are in the oil business and one of his activities is as a director of an exploration company. A deal comes in, they present it to the company, but take it for themselves, Did they steal the opportunity from the company? In Huff  Energy Fund LP v. Longview… Continue Reading

Wage and Hour Claims Menace Producers

Posted in Litigation, Regulations

Co-author Michael Kelsheimer It’s common knowledge: Fair Labor Standards Act audits from the U. S. Department of Labor and lawsuits from workers for overtime violations are coming faster than a blitzing safety on a third and long. Native Oilfield Services is the latest target.  Dispatchers and truck drivers brought suit against Native alleging they were… Continue Reading

Compressor Station Negligent Nuisance Verdict Reversed

Posted in Construction, Litigation

Therapist: “We’re here today in group to bring closure to the traumatic events of Crosstex North Texas Pipeline L.P. v. Gardiner. Each side claims mistreatment by his adversary and by one component or another of the civil justice system. Rancher/property owner Mr. Gardiner, you appear to be the more unhappy party, let’s start with you. Your glorious trial victory… Continue Reading

How an Expert Can Affect Your Oil and Gas Claim

Posted in Litigation

Co-author Matthew Wheatley Your well consultant just cemented 10,000 feet of tubing inside the casing of your eight million dollar well, … a neighboring operator frac’ed his Eagle Ford well into your Austin Chalk completion, thereby trespassing and contaminating your well. Righteousness and vengeance are yours. The jury will draw and quarter the offender. Not So Fast Texokan Operating,… Continue Reading

How to Manage Credit and Collect Unpaid Bills in Today’s Oil Patch

Posted in Contract Disputes, Litigation

Co-authors Preston Kamin and Joe Virene Everybody from the well site to the board room has an opinion about when oil prices will “rebound”. Rather than an opinion, we have a question:  How do I collect my money while we’re waiting? This post is a refresher for service companies and suppliers looking for money from operators, and for operators looking to non-operators.  There are many steps… Continue Reading

Lipsky Revisited – Details and Debate

Posted in Hydraulic Fracturing, Litigation, Pollution

I often wonder if anybody actually reads our modest, quasi-weekly offerings. They do! And they respond! To criticize!  I earn my keep being “critiqued” by impatient judges, aggressive opposing counsel and, occasionally, less-than-happy clients, so – challenge accepted. “Critique” One: Lipsky was not Range’s lessor, therefor I know nothing about the case. Surely, this person lives in my house, where I enjoy a… Continue Reading

How Are the Texas Anti-SLAPP Statute and Jade Helm 15 Alike?

Posted in Hydraulic Fracturing, Litigation, Pollution

May a court “draw rational inferences from circumstantial evidence” when determining if a plaintiff  has met its burden in a suit in which the defendant has invoked the Texas Citizens Participation Act . That was the question in In re Lipsky. What is The Anti-SLAPP Statute? The purpose of the TCPA (the “Anti-SLAPP” statute) is to protect citizens from… Continue Reading

5th Circuit Blocks Punitive Damages in Maritime Case

Posted in Litigation

Co-author Shannon Thorne In McBride v. Estis Well Service, LLC, the federal 5th Circuit Court of Appeals determined that punitive damages are not available to seamen under the Jones Act or under general maritime law. In those cases, recovery is limited to pecuniary losses. The Drill Barge Accident Estis Well Service owned and operated Estis Rig… Continue Reading

Listen to the Words In the Injunction Battle

Posted in Litigation, operations

If it’s an injunction you want, some words are your friend and others aren’t. For example: “Imminent” = friend “Might” = not friend “Likely” = friend “Could” = not friend “Irreparable” = friend “Money damages” = not friend In Lightning Oil Company v. Anadarko E&P Offshore, LLC, the surface and 1/6 of the minerals of the… Continue Reading

Hydrocarbon Exposure Reconsidered

Posted in Litigation, Pollution

Co-author Maryann Zaki You might recall previous entries (here is one) discussing the $2.9 million Dallas County verdict and judgment in Parr v. Aruba. Not all similar suits have the same result. Michael and Myra Cerny sued Marathon Oil Corp. and Plains Exploration & Production Company, alleging, as in Parr,  private nuisance, negligence, and negligence per se…. Continue Reading

How Much Are Your Trees Worth?

Posted in Construction, Litigation

In Texas, more than your dog. Gilbert Wheeler, Inc. v. Enbridge Pipelines (East Texas), L.P. is good news for landowners. The Texas Supreme recognized the intrinsic-value-of-trees exception to the general rule for damages to real property, so that landowners are compensated for the loss of the ornamental (esthetic) and utilitarian (shade) value that trees bring… Continue Reading

Frac(k)ing, Parr v. Aruba, and Minority Oppression

Posted in Hydraulic Fracturing, Litigation

WHAT IS IT, FRACING OR FRACKING? Having gone back-and-forth over how to spell the process, I’ve figured it out. Why it is “Fracing”: That’s what the engineers call it, and they’re the ones who do it.  Some law firm blogs stand fast with their friends and agree.  It’s a gerund:  A noun formed from a verb by adding “-ing”.  So… Continue Reading

Federal Court: General Partnership Interest Could Be a Security

Posted in Litigation, Regulations

By: Martin P. Averill Are general partnership agreements for oil and gas exploration considered “securities” governed by federal securities regulations? The U.S. Court of Appeals for the 10th Circuit  thinks they could be. In SEC v. Jeffory D. Shields and Geodynamics, Inc. et al., the court reversed a trial court ruling which dismissed the SEC’s claims… Continue Reading

Distributions from a Texas Trust Deemed Separate Property

Posted in Litigation

Co-author Alexandra A. Crawley Conventional wisdom is that a spouse’s earnings from separate property are community property. But it’s not that simple. In Benavides v. Mathis a Texas court denied wife Leticia’s claim to one-half of the income derived from minerals held in a trust in which incapacitated husband Carlos was a beneficiary. Years before Carlos and Leticia began their nuptial… Continue Reading