Today we venture into Oklahoma, to be instructed on the Supreme Court’s treatment of the Rule Against Perpetuities. First, the Rule: No property interest is good unless it must vest, if all, not later than 21 years after some life in being at the creation of the interest.
Operator – Don’t Get Burned by Paying an Insolvent Contractor
MEMORANDUM
From: Legal Department
To: Accounts Payable
Re: What we learned from Shell Western E&P, Inc. v. Pel-State Bulk Plant, LLC
________________________________________________________________________
Just received notice of a Texas subcontractor’s mineral lien? DO NOT continue to pay the contractor. He hasn’t paid the subcontractor. Think you owe nothing on the well on which the lien will
Assigning By “Stratigraphic Equivalent”? Be Careful
Co-author Brooke Sizer
How many of your mineral conveyances are described like this:
… all of Sellers’ right, title and interest in and to (a) the oil, gas and other minerals in, to and under the lands … ONLY INSOFAR as such oil, gas and other minerals are located below that depth which is the
Louisiana Partition Agreement: You Can’t Trade What You Don’t Own
Square Mile Energy LLC v. Pommier considered this language in a Louisiana partition agreement: “N.B: Included in this transfer are any and all mineral rights, when available, to Roxanne and all surface rights.” Did this language include an interest in a
The Accommodation Doctrine Gets Its Feet Wet
Let’s start with a little background: Under the Accommodation Doctrine an oil and gas lessee has an implied right to use the land as reasonably necessary to produce and remove the minerals, but must exercise the right with due regard for the landowner’s rights.
As a result of Coyote Lake Ranch v. City of Lubbock
Neither a Will Nor a Gift Deed?
This narrative about a daughter gone bad is for title examiners, landmen and moralists. Business development persons, skip straight to the lesson.
The background
Elvira owned a home and lived with Johnny. Elvira and Johnny were named managing conservators for her three grandchildren after a daughter died. The grandchildren lived at the house. Elvira and
Washing Out a Lessee By Email
Behold Mr. Clean. Even he can’t remove a pesky stain as skillfully as the landman who framed the conversation in a way that washed out a lessee. See Anadarko Petroleum Corporation v. TRO-X, LP
Did the lessee retain any interest in the mineral estate after its sublessee and the lessors filed a release of the
What Happens to a Bundled Production Payment When a Lease Terminates?
Must a production payment out of four oil and gas leases be proportionately reduced if two of the leases expire because production ceased? In Apache Deepwater, LLC v. McDaniel Partners, Ltd., the Texas Supreme Court says yes. Absent express language in the assignment to the contrary, this general rule applies: When an assigned
What is an Adequate Description For a Mineral Lien ?
Co-author Alexandra Crawley
Thanks to In re Reichmann Petroleum Corp., we know one that works in Texas: A lien affidavit attaching either a plat or a plat and a Texas Railroad Commission Form W-1 provides an adequate property description for a mineral lien against an entire lease under the Texas Property Code.
Current practice
Texas Property Code Change – No More Subordinations?
Special thanks to Gray Reed colleagues Paul Yale and Dominic Salinas for this post.
Weary of having to solicit those pesky subordinations of pre-existing mortgages to your recently-acquired oil and gas leases? Tired of chasing down the third assistant to the fourth vice president for loan servicing just to obtain one simple document? The 2015