- Subordinate to, subservient to;
- A term that does not limit the scope of a conveyance but instead notifies the grantee of a right or obligation attended to the property;
- The USA is captive to the
Contract Disputes
Can My State’s Anti-Indemnity Law Trump Your Choice-of-Law Provision?

Co-author Gunner West
Yes … sometimes. In ConocoPhillips Company v. Totem Well Service, the U.S. District Court for the Southern District of Texas applied New Mexico law to an oilfield indemnity dispute, voiding the Master Service Agreement’s indemnification clause calling for Texas law to govern.
The facts
ConocoPhillips, headquartered in Texas, hired Totem, based…
Texas Business Court Resolves Energy Dispute
Co-author Gunner West

Slant Operating, LLC and Slant Holdings, LLC v. Octane Energy Operating, LLC, reveals the benefits and purposes of the Texas Business Court in resolving complex energy disputes (such as convincing businesses to abandon Delaware). The parties were presented with three detailed written opinions spelling out the Court’s rulings and the reasons…
Right of First Refusal Addressed By Texas Court
Co-author Taylor Hall

In SM Energy Company v. Buzzard Roost Farms, Inc. a Surface and Subsurface Use and Compensation Agreement between operator SM and surface owners included a right of first refusal (ROFR) relating to placement of saltwater disposal wells drilled within five miles of the “Surface Lands”. Failing to notice the ROFR, SM…
No Invoice, No Breach Under a COPAS Accounting Procedure

Co-author Gunner West
Last year we reported on Steelhead Midstream Partners, LLC v. CL III Funding Holding Company, LLC, where the Texas Supreme Court held that a pipeline owner’s breach-of-contract claim was not an impermissible collateral attack on a foreclosure judgment. The case went back to the Fort Worth Court of Appeals for a…
Condition Precedent Stymies Seismic Operation
Co-author Kamal Omar

In Endeavor Natural Gas III, LLC v. Comanche Maverick Ranch Investments, L.P., a Texas court held that operator Endeavor could not conduct seismic operations on lessee/surface owner Commanche’s ranch because the parties’ surface-use agreement allowed such operations ” … only after first entering into a mutually agreed-upon seismic surface use permit…
Winter Storm Uri Force Majeure Discourse Continues
- Did Winter Storm Uri prevent Pioneer’s delivery of natural gas under the parties’ NAESB Base
Lessors’ Numerous Claims Against Operator Thwarted

For an example of a case gone wrong in so many ways, look no further than Evans Resources LP et al v. Diamondback E & P.
The facts
There were three agreements between several Evans entities and Diamondback for Evans‘ 651 acres in Midland County, Texas: An oil and gas lease allowing pooling with…
Texas Business Court Addresses Another Winter Storm URI Force Majeure Dispute
Co-author Taylor Hall

In Marathon Oil Co. v. Mercuria Energy America, LLC, the Texas Business Court (11th Division) considered a North American Energy Standards Board (NAESB) contract to buy and sell natural gas. With three opinions to discuss, this post will be longer than usual.
When the storm hit Texas, seller Marathon failed to…
Louisiana Oilfield Anti-Indemnity Act Nullifies Offshore Indemnity Obligation

You would think that a Master Service Contract concerning boats and oilfield operations in the Gulf of Mexico would be governed by federal maritime law. In some situations you would be mistaken, says Offshore Oil Services, Inc. v. Island Operating Company, Inc.
The facts
Fieldwood and Island Operating entered into a MSC through which…