It was a bad day for the Parrs in Aruba Petroleum v. Parr. The trial court judgment was against the operator for intentional nuisance. The Parrs recovered $2.9 million for pain and suffering and mental anguish and for loss of market value of their home caused by Aruba’s gas wells in Wise County, Texas. (See
Oil and Gas Arbitration – Did the Parties Get What They Bargained For?
First, a promise: I won’t report on another arbitration case until there is more to say than “business as usual”. Second, an opinion: Arbitration is still the right forum in many situations. Third, remember: An award and a result, not litigation, was what Venoco says it bargained for.
That said, knowing only that Denbury Onshore
What Price For a Louisiana Servitude?
According to Enterprise Te Products Pipeline Company v. Avila, it is the value of the expropriated property, even if it is as little as 33 cents each to the landowners. This seemingly small case must have had big potential for chaos. Otherwise, why appeal?
Enterprise sought expropriation of a 30-foot wide servitude over the
Oil Industry Custom and the Model Form JOA: A Debate
We begin with an existential question:
“The philosophy behind all of the model form agreements is that aggressive drilling under the JOA should be promoted and rewarded.
Agree or disagree?
That was an issue in Talisman Energy v. Matrix Petroleum. It was not resolved, but the decision is worth your attention because the court enjoined
It’s Now Easier To Be a Common Carrier Pipeline in Texas
We now know what it takes to establish common carrier pipeline status in Texas. According to the Texas Supreme Court in Denbury Green Pipeline Texas LLC v. Texas Rice Land Partners Ltd., all that is required is a reasonable probability that the pipeline will, at some point after construction, serve the public by transporting
The Constructive Notice Doctrine in Action
Today’s “pay attention” edition begins with a quiz. What is the most important thing to read carefully:
a. Speed limit sign in small-town (insert name of Southern state).
b. Itinerary for that dream vacation, the one with multiple layovers of varying durations in airports and time zones far from your own.
c. Title documents to
2016 – A Bad Year For Bad Guys in Energy
Let’s look back at a cavalcade of crooks, criminals and miscreants who met up with justice in 2016. We do it to be reminded of the others who will be lurking in the 2017 shadows.
Perp: David Kent, founder of Oilpro.com
Offense: Wire fraud by computer hacking.
How: Created a “backdoor entry” into the computer
Have You Reviewed Your Lease Maintenance Processes Lately?
You might conclude that the but-for-the-grace-of-God-that-could-be-me nightmare presented in In re: RPH Capital Partners is instructive only for lawyers. If so, you would be mistaken. The lesson: If you want to win the lawsuit, pay attention to pesky legalities such as notices of trial settings. Likewise, if you want to protect your hydrocarbons, reinforce your
TXO v. Vela Remembered in a Gas Royalty Case
Westport Oil & Gas Company, L.P. v. Mecom et al. presented this question: Was the lease royalty based on a gas purchase agreement formula or on the royalty clauses’s market value at the well provision?
Spoiler alert: Invoking the seminal Texas Supreme Court decision in Texas Oil and Gas Corporation v. Vela
Your Louisiana Override – Where Does it Come From?
It’s a multiple choice question:
a. The royalty interest reserved by the lessor.
b. The drillbit, courtesy of fearless, risk-taking entrepreneurs, the backbone of the great American free enterprise system and the sworn enemies of collectivism.
c. A cache of DNC emails, discovered by Vladimir Putin himself.
d. The working interest.
e. It doesn’t matter.