In Cactus Water v. COG Operating, the Supreme Court affirmed that mineral lessee COG, not water rights owner Cactus (who derived it rights from the surface owner), has the right to possession, custody, control, and disposition of constituent water in liquid waste – so-called produced water – from its hydrocarbon production.
In Williams O & G Resources, LLC v. Diamondback Energy, Inc., a federal magistrate judge concluded that the Texas Relinquishment Act does not apply to public-school lands patented after 1931. The report and recommendation was adopted by the district court.
The facts
Williams’ predecessor-in-interest acquired a tract of public land from
In In re Pearl Resources LLC, a Houston bankruptcy court rejected the Texas General Land Office’s attempt to partially terminate state oil and gas leases in Pecos County, despite finding the operator had breached offset well obligations.
The court describes the difference between “drilling operations” and “drilling”, explains when failure to
The growling and barking presented by a claim for tortious interference is often far worse than the bite. Consider Segundo Navarro Drilling, Ltd. v. Chilton , which is a good example of that phenomenon in an oil and gas transaction. The Dallas Court of Appeals affirmed summary judgment for defendants, holding that:
After four stops at the lower courts, Kenneth Hahn v. ConocoPhillips has been resolved by the Supreme Court of Texas. The Court opined on the effect of two instruments often used to clarify land titles in Texas: ratifications of an oil and gas lease and stipulations of interests.
In re: EP Energy E&P Company, LP considered three lease maintenance provisions in several oil and gas leases. The federal district court ruled that the leases were maintained in force after cessation of production despite creative (some would say “strained”) lease interpretations by a group of lessors. In sum, the court deemed
In Self v. BPX Operating, a case with significant implications for Louisiana operators and royalty owners, the Supreme Court of Louisiana ruled that the doctrine of negotiorum gestio in La. Civil Code art. 2292 does not allow the operator of a drilling unit created by Louisiana’s conversation laws to withhold post-production expenses (PPCs) from
The real takeaway from Pruett v. River Land Holdings LLC is the reminder that the Texas Railroad Commission cannot adjudicate questions of title.
The facts
In 2001 Pruett acquired 323 acres and his mother acquired 194 acres of an original 550-acre tract in Milam County, Texas, which was burdened by an oil and gas lease.
It’s not exactly Deuteronomy 23:19, but the Supreme Court of Texas has an opinion about interest. They don’t like it if it’s compounded. Samson Exploration LLC v. Bordages addressed interest to be charged on unpaid royalties under an oil and gas lease.
The takeaway
Compound interest is disfavored in Texas law. An agreement for interest
In Carl v. Hillcorp Energy the Supreme Court of Texas addressed the relationship between the lessee’s use of gas off-premises under a free-use clause and the lessor’s burden to share post-production costs (PPCs) under the at-the-well gas royalty clause of an oil and gas lease. Spoiler alert: Lessee wins.
The basics
Minerals that have been