You are negotiating a master service agreement, exploration agreement, farmout, or other oil-field contract, and the other side proposes that all disputes be resolved by arbitration. Should you agree? The answer? It depends. I try lawsuits, advocate in arbitrations, and preside as an arbitrator, so I’m often asked this question. The answer isn’t the same in every case…. Continue Reading
Category Archives: Litigation
Subscribe to Litigation RSS FeedHomeowner’s Testimony About Market Value Can’t be Speculative
Posted in LitigationA multiple choice question: You’ve gotten to the trial you’ve waited two years for. You are presented with a “naked conjecture … “ followed shortly by an “ipsi dixit”. Your reaction: a. “Finally, something interesting happened at the courthouse.” b. “No thanks, I’m spoken for.” c. Rejoice, you won. Natural Gas Pipeline Company of America v. Justiss is a… Continue Reading
Executive Right Owner Could Be Liable for Failing to Forward Royalty Payments
Posted in Land Titles, Lease Disputes, LitigationThe ghosts of Clinton Manges and people like him continue to haunt executive right owners in Texas. In the 1980’s, Mr. Manges’ abuse of his non-participating royalty owner inspired the Texas Supreme Court to re-affirm the obligations of an executive right owner to the NPRI owner: “utmost fair dealing” and a fiduciary duty. In Friddle v. Fisher an appellate court… Continue Reading
Theft of Trade Secrets Nets Large Damage Award
Posted in LitigationFor the sake of conversation let’s say I burgle your trade secrets after failing to close a big deal that would have saved your company. I would be in big trouble, according to a bankruptcy court in In re TXCO Resources., Inc., a case study in treachery and self-dealing in the executive suite worthy of J.R Ewing at… Continue Reading
Reformation For Mutual Mistake Is Not Available to a Negligent Party
Posted in Land Titles, LitigationMy, how times change! In a suit that brings the chaos, frenzy, and all-embracing madness of 2008 Haynesville leasing activity into focus, Hall Ponderosa LLC vs. Petrohawk Properties L.P. held that reformation of an oil and gas lease because of mutual error was not available to a lessor who was negligent in executing the agreement. In… Continue Reading
Reservoir Engineers Could be Liable for Aiding and Abetting
Posted in LitigationHighland Capital Mgmt., L.P. et al v. Ryder Scott Co. shows how far a plaintiff will reach to find deep pockets to pay for a bad investment. Here, the plaintiffs went after the reservoir engineers who made reserve estimates and to a purchaser who acquired notes after the plaintiff acquired theirs. There was a question about… Continue Reading
Louisiana Addresses Legacy Pollution Claims
Posted in Litigation, PollutionLouisiana Governor Bobby Jindal signed into law two bills significantly revising Louisiana’s oilfield cleanup statute, La. R. S 30:29. The new law affects the procedures for remediating oil field pollution and resolving oilfield contamination claims. The purupose is to expedite the remediation process and the resolution of claims. For the highlights that were important to the Louisiana Oil and Gas Association,… Continue Reading
In the Sale of Unregistered Securities, Knowledge of the Crime Does Not Matter
Posted in LitigationFinally, a criminal case those who raise money should consider. Hays v. State informs us of several basic rules to follow when selling oil and gas interests to strangers. They are simple but important: Rule 1: If you tell your targets that you are raising the money to drill a well, you should go ahead and actually drill… Continue Reading
Be Careful With Electronically Stored Information
Posted in LitigationBY CHANCE DECKER Kurt Mix’s nightmare probably won’t happen to you, but ignoring electronic discovery laws could cause you big problems in litigation. You might have heard of Mr. Mix, the former BP engineer now facing federal obstruction of justice charges for deleting text messages about the 2010 Gulf oil spill. His nightmare is playing out in… Continue Reading