- Don’t bother to comply with the most basic and unambiguous requirements of the contract.
- Take informality for granted.
- Assume that if
Contract Disputes
Texas Supreme Court Will Review Produced Water Case

Who owns produced water in Texas? And what is produced water anyway – oil and gas waste and part of the mineral estate, or groundwater and part of the surface estate? We may be closer to an answer to these questions now that the Texas Supreme Court has agreed to hear a…
Arbitration Result Can Be “Good”, “Bad” or “Ugly”

The message in RSM Production Corporation v. Gaz du Cameroun SA: According to the federal Fifth Circuit, an arbitration tribunal’s construction of a contract and the arbitration rules governing the dispute “hold, however good, bad, or ugly.” Translation: Good for one party, bad or ugly for the other, just like the courthouse.
RSM was…
Louisiana Oilfield Anti-Indemnity Act Nullifies an Indemnity Obligation

In In the Matter of Offshore Oil Services, Inc., Offshore owned and operated the M/V Anna. Offshore sued Island Operating Company for exoneration and/or limitation of liability for a personal injury claim by an employee of Island. The question (after a series of earlier rulings): After reaching a settlement with the employee of Island…
Definitions Mattered in Oil Field Master Services Agreements
MDC Enegy LLC v. Crosby Energy Services Inc. et al. was an indemnity dispute in which the players were many and the facts complicated.
But first
Gray Reed’s own Mitch Ackal and Jeremy Walter will present an entertaining and informative webinar on Texas Business Courts on January 29 at noon. Use this link to learn…
Master Service Agreement Imposes a Ceiling on Indemnity Obligations

Mr./Ms. Negotiator/scrivener/reviewer of Master Service Agreements: When did you last review your go-to indemnity provision? In light of Century Surety Company v. Colgate Operating LLC., perhaps you should do it now. The court deemed an innocuous-seeming indemnity provision to impose a ceiling on indemnity obligations under an MSA. Is your MSA consistent with…
Sole Discretion Not to Close Renders Texas Oil Deal Unenforceable

Maverick Natural Resources, LLC at al v. Glenn D. Cooper Oil & Gas, Inc. is for control freaks wherever you are … and for those of you who advise the aforesaid control freaks.
Cooper sent Maverick a letter offering to purchase oil and gas wells and leases in Crane County for $950,000, to which…
Supreme Court of Texas Sorts Out Complicated Assignment of Oil and Gas Leases
- 1st granting clause: … all right, title and interest in the … leasehold estates described in
Harsh Result in a Drilling Contract Dispute

Frontier Drilling, LLC v. XTO Energy, Inc. has the indicia of an inequitable result, but as I remind my wife every time she objects to what she deems to be an outrageous jury verdict, we don’t know all the facts and the court’s gotta follow the law, so let’s not judge.
The facts
Drilling…
Have You Recorded Your Saltwater Disposal Agreement?

According to Darkhorse Water LP v. Birch Operations Inc. et al., the form of an instrument affecting real property in Texas does not affect the interest conveyed by the instrument. It’s what the document says about the transaction, not what the document calls itself. And you are reminded (because you know should this) that…