Photo of Charles Sartain

confusedCo-author Chance Decker

Here is what we believe is an unusual situation: A gas unit is formed. The gas well ceases to produce. Another gas well produces from an oil unit, but the lease at issue is not included in the oil unit. Is the lease perpetuated by production from the second gas well?

In Yarbrough v. ELC Energy, LLC The answer is, in Texas, Yes.  Read on for why, and decide for yourself  if this result makes sense.
Continue Reading An Unusual Way To Hold an Oil and Gas Lease

hysteriaThe climate change debate is too complex, agenda-driven, and politicized to be addressed adequately in these pages. But the hysteria and faux outrage over President Trump’s decision to withdraw from the Paris Climate Accord is enough to incite a bad case of the red-keister. So, if you are in need of ammo to repel those who are experiencing intense displeasure from the decision, here are a few well-considered reasons why the result just might be the correct one. You should read the articles themselves, and you aren’t being asked to agree.

It wasn’t such a big deal to begin with. Foreign Affairs

The US’s pledge is more burdensome relative to baseline projections then the pledges of the other major emitters. Three of the six can increase their emissions. This article is not one-sided, and suggests the best policy would have been to remain in the PCA but revise it so our goals are more consistent with other major emitters. American Action Forum

The agreement would have burdened the US with huge costs and no economic benefits. Americans for Tax Reform
Continue Reading Why Leaving the Paris Climate Accord Could Be a Good Thing

shysterAccording to Mr. Bumble, the law is an ass. I disagree (Know a lawyer who’s an ass? That’s another conversation). In Davis v. Mueller the law was not an ass, per se, but as applied by the Texas Supreme Court it showed little mercy.

A refresher on conveyances

  • According to the Statute of Frauds, a writing conveying real property must furnish within itself, or by reference to some other existing writing, the means or data by which the land to be conveyed may be identified with reasonable certainty.
  • A Mother Hubbard clause is a catchall in a deed to capture small, overlooked, or incorrectly described interests.
  • A Mother Hubbard clause is not effective to convey a significant property interest not adequately described in the deed.
  • In Texas a general conveyance of all of a grantor’s property in a geographic area is given effect.

Continue Reading Texas Mineral Deeds Survive the Statute of Frauds

too lateWhen must a neighbor sue for nuisance and trespass or else be barred by limitations? It’s a tricky question. In Town of Dish et al v. Atmos Energy et al, the Texas Supreme Court concluded that the claims were time-barred. The limitations train had left the station.

The rules

Here are factors considered by the court that govern when these cases must be brought:

  • Limitations runs two years from the time the claim accrues.
  • When a claim accrues (and the limitations clock begins to tick) is a question of law for Her Honor, not the jury.
  • Trespass and nuisance claims accrue once a “known injury begins.”
  • Normally, such claims don’t accrue when the source is under construction. However, once operations begin and interference occurs, the clock starts.
  • Once a claimant learns of a wrongful injury, limitations begins to run even if the claimant doesn’t yet know the specific cause of the injury, the party responsible, the extent, or the chances of avoiding it.
  • A claimant’s subjective belief as to the accrual date doesn’t matter. A nuisance is a condition causing unreasonable annoyance to persons of ordinary sensibilities. Its an objective test.

Continue Reading Limitations Runs on Nuisance Claims

Gregg AllmanTrigger warning for Texas readers: This entry will discuss forced pooling. You may now retreat to your “safe space”, where “no guvment-sumbitch-bureaucrat can conspire with [name of large oil company] to steal my stripper well.”

TDX Energy, L.L.C. v. Chesapeake Operating, Inc. doubles down on XXI Oil and Gas v. Hilcorp Energy Company from the Louisiana Third Circuit, while giving a useful tutorial on the purpose and effect of Louisiana forced pooling. Caveat: Pay attention below to the statute as amended.
Continue Reading Louisiana Forced Pooling – Timing is Important

Yellow KEEP OUT Barrier TapeCo-author Chance Decker

We know that in Texas the mineral owner has the right to explore for and produce the minerals. What does that leave for the surface owner? In Lightning Oil Company v. Anadarko E&P Onshore, LLC the Texas Supreme Court tells us he owns the right to possess the specific place or space where the minerals are located. Absent pooling or some other contractual arrangement, with that comes the right to grant (for a price) or deny an off-lease operator the right to drill through the mineral estate to reach minerals under an adjacent tract.
Continue Reading Texas Subsurface Trespass Law Clarified

certificate of participationCo-author Chance Decker

You are a service company and you’ve been sued for a defective frac job. It looks scary but there’s no detail in the petition and no certificate of merit is attached. What is your response:

  1. “Such a pity; my fifth-grader got one for finishing next-to-last at the track meet”;
  2. He should borrow one from the scarecrow;
  3. Panic, offer a nice settlement to the plaintiff if, for the love of Jesus, Mary and Joseph and your non-exempt ranch in West Texas, he’ll just go away;
  4. Ponder the difference between “shall” and “may”.

Perdenal Energy LLC v. Bruington Engineering, Ltd. asked whether a court must dismiss an engineering defect lawsuit filed without a certificate of merit with prejudice (never to file suit again) or may dismiss without prejudice (to refile once they obtain a certificate).
Continue Reading Suit For Bad Frac Job Requires a Certificate of Merit

A Black Rhino running towards the camera, Kruger National Park

Forest Oil Corporation v. El Rucio Land and Cattle Inc. et al deserves your attention for four reasons:

  • You won’t see another one involving damage to a rhinoceros pen.
  • It confirms that the Texas Railroad Commission does not have exclusive or primary jurisdiction over private claims for environmental contamination. Welcome to the courthouse.
  • The South Texas redistributionist approach to civil justice includes arbitrations.
  • For once, the Texas Supreme Court declined to eviscerate a multi-million dollar plaintiff victory.

Continue Reading Oil Field Contamination Award Upheld