In January I commented on the partnership that wasn’t and the lawyer whose actions give the rest of us a bad name. That was Stephens et al. v. Three Finger Black Shale Partnership et al. The court of appeal has substituted its original 66-pages with a 67 page opus. Save yourself the trouble of reading
Big Damages in a Texas Trade Secret Case
Co-author Sonya Reddy
Defendants accused of stealing trade secrets often claim that publicly available information can’t constitute a trade secret. Sometimes yes, but mineral ownership that can be determined from the public record only after lengthy, expensive, and labor-intensive research in the county courthouse can have trade-secret protection, according to Eagle Oil & Gas Co. v. Shale Exploration, LLC.
It began like a routine exploration venture …
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Texas Anti-SLAPP Statute Stalls Lessee’s Counterclaim
It is often a worthy strategy for the lessee to be aggressive with counterclaims against the lessor. Or how about we’re the Wehrmacht and the other guy is Poland.
Lessees should think twice about that strategy if it means complaining about the lessor’s public statements. In Lona Hills Ranch v. Creative Oil & Gas Operating LLC et al, that strategy ran afoul of the Texas Citizens Participation Act, Texas’s “anti-SLAPP” statute (“Strategic Lawsuits Against Public Participation”).
The TCPA authorizes dismissal of a legal action based on, relating to, or in response to a party’s exercise of the right of free speech, right to petition, or right of association.
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Opinions to Expect From the Texas Supreme Court
Co-author Chance Decker
The Texas Supreme Court recently heard oral argument in three intriguing oil and gas cases. Here’s what you need to know about two of them (We’ll address the third case soon).
Adams v. Murphy Exploration & Production Co. USA
Did lessee Murphy comply with an offset-well clause that doesn’t state where the offset-well must be drilled? When a well was drilled on an adjacent tract, Murphy drilled its offset-well more than 2,000 feet from the triggering well.
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Oil and Gas in Texas: Some Law and a Little History
Welcome to the binary edition, where you have a choice: An informative and engaging stroll through the history of the oil and gas business in Texas, or a wonkish and also informative legal analysis.
First, at the recent summer meeting of the Texas Independent Producers and Royalty Owners, TIPRO (and Drilling Info) president Allen Gilmer
Limitations Runs on Nuisance Claims
When must a neighbor sue for nuisance and trespass or else be barred by limitations? It’s a tricky question. In Town of Dish et al v. Atmos Energy et al, the Texas Supreme Court concluded that the claims were time-barred. The limitations train had left the station.
The rules
Here are factors considered by the court that govern when these cases must be brought:
- Limitations runs two years from the time the claim accrues.
- When a claim accrues (and the limitations clock begins to tick) is a question of law for Her Honor, not the jury.
- Trespass and nuisance claims accrue once a “known injury begins.”
- Normally, such claims don’t accrue when the source is under construction. However, once operations begin and interference occurs, the clock starts.
- Once a claimant learns of a wrongful injury, limitations begins to run even if the claimant doesn’t yet know the specific cause of the injury, the party responsible, the extent, or the chances of avoiding it.
- A claimant’s subjective belief as to the accrual date doesn’t matter. A nuisance is a condition causing unreasonable annoyance to persons of ordinary sensibilities. Its an objective test.
Suit For Bad Frac Job Requires a Certificate of Merit
Co-author Chance Decker
You are a service company and you’ve been sued for a defective frac job. It looks scary but there’s no detail in the petition and no certificate of merit is attached. What is your response:
- “Such a pity; my fifth-grader got one for finishing next-to-last at the track meet”;
- He should borrow one from the scarecrow;
- Panic, offer a nice settlement to the plaintiff if, for the love of Jesus, Mary and Joseph and your non-exempt ranch in West Texas, he’ll just go away;
- Ponder the difference between “shall” and “may”.
Perdenal Energy LLC v. Bruington Engineering, Ltd. asked whether a court must dismiss an engineering defect lawsuit filed without a certificate of merit with prejudice (never to file suit again) or may dismiss without prejudice (to refile once they obtain a certificate).
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Lessons in Administering a Master Service Agreement
Is condensate a contaminant? When it spills and burns a worker, yes. In Hiland Partners v. National Union Fire Insurance Company the operator, an additional insured under a contractor’s commercial general liability insurance policy, was deprived of coverage – and a duty of the insurer to defend. We’ll get to the lessons. But first, …
Oil and Gas Arbitration – Did the Parties Get What They Bargained For?
First, a promise: I won’t report on another arbitration case until there is more to say than “business as usual”. Second, an opinion: Arbitration is still the right forum in many situations. Third, remember: An award and a result, not litigation, was what Venoco says it bargained for.
That said, knowing only that Denbury Onshore
Have You Reviewed Your Lease Maintenance Processes Lately?
You might conclude that the but-for-the-grace-of-God-that-could-be-me nightmare presented in In re: RPH Capital Partners is instructive only for lawyers. If so, you would be mistaken. The lesson: If you want to win the lawsuit, pay attention to pesky legalities such as notices of trial settings. Likewise, if you want to protect your hydrocarbons, reinforce your