Would this scenario keep you up at night? Your lease does not produce from May through August because a leak in a heater-treater makes it impossible or impractical to produce the well. Problems such as access to the site during rainy weather make repairs difficult. You are beyond the primary term. The top- lessee lurks.
What Does “Sprawling Litigation” Look Like?
It looks like what you’d expect: a bunch of litigants spending lots of time at a courthouse in Goliad, Texas, with no end in sight. After much “sprawl” in Harkins v. Northshore Energy it came down to the meaning of this property description (call it Tract 2): “Being 1,210 acres of land, more or less,
Freedom to Contract Prevails in New Mexico
Co-author Alexandra Crawley
Is freedom to contract a good thing for everybody? First Baptist Church of Roswell v. Yates Petroleum Corp. says yes, and confirms that the public policy in New Mexico is freedom to contract. In this case, it was to avoid the Proceeds Payment Act requirement for payment of interest on well
CO2 is Good
… in the right places.
Co-author Mark Bohon
In French vs. Occidental Permian, Ltd. the Texas Supreme Court held that costs associated with injection of carbon dioxide into a reservoir in a tertiary recovery operation were properly deducted from royalties.
This case reflects court’s awareness of improvements in oil recovery created by new technology, in
The Non-Binding Agreement – Louisiana Edition
Co-author Brooke Sizer
I say, “Let’s go down to the crab shack for some seafood”. You say, “I agree, we’ll go to a steakhouse for a big, juicy slab of cow”. Am I obligated to join you to split a 32 ounce Porterhouse with three sides and a Cabernet with a 94 rating?
No. In
Are Personal Injury Damages Available in a Nuisance Case?
Co-Author Maryann Zaki
As promised, on May 22, today’s post is a study of the personal injury issues raised by the defendants in Parr v. Aruba. You will find a more detailed analysis here.
In this post we raise the question and discuss what the parties believe the answer should be.
The Havner
Texas Supreme Court Will Review Reversal of $20 Million Judgment
Two intriguing factors are present in the Texas Supreme Court’s decision to review Hooks v. Samson Lone Star, LP. It is out of the ordinary for this court to consider a court of appeals reversal of a large jury verdict. And the discovery rule is again in play in response to a statute of
A Cost-Free Royalty Clause That Works – Part Two: The Override
Co-author Travis Booher
Welcome to part two of the hair-splitting decision in Chesapeake Exploration, L.L.C. v. Hyder. See our prior post about the basic facts.
More Facts
In addition to their cost-free royalty clause for wells on the leased premises, the Hyders also received an overriding royalty interest on wells drilled from pads located
A Cost-Free Royalty Clause That Works – Part One
Co-author Travis Booher
Chesapeake Exploration, L.L.C. v. Hyder is another hair-splitting Texas decision about “cost-free royalties”.
The Facts
The Hyder family executed a lease covering 1,037 acres. Chesapeake drilled 22 wells on the leased premises. The Hyders believed their lease provided for a “cost free” royalty; that is, no post-production deductions. Chesapeake deducted post-production
Mixed Result in a Louisiana Legacy Pollution Case
Co-author Ann Weissmann
The Dietz family sued several lessees for injunctive relief and restorative damages arising out of leases on two non-contiguous tracts in Acadia Parish. In Dietz, et al. v. Superior Oil Company, et al the trial court granted the lessees’ dilatory exceptions of prematurity and improper cumulation and dismissed the plaintiff’s suit without