It was a bad day for the Parrs in Aruba Petroleum v. Parr. The trial court judgment was against the operator for intentional nuisance. The Parrs recovered $2.9 million for pain and suffering and mental anguish and for loss of market value of their home caused by Aruba’s gas wells in Wise County, Texas. (See
Oil Industry Custom and the Model Form JOA: A Debate
We begin with an existential question:
“The philosophy behind all of the model form agreements is that aggressive drilling under the JOA should be promoted and rewarded.
Agree or disagree?
That was an issue in Talisman Energy v. Matrix Petroleum. It was not resolved, but the decision is worth your attention because the court enjoined
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
New Mexico Pit Rule Survives Challenge by Enviro Group
In a case displaying the tactics of anti-fossil fuel advocates, Earthworks’ Oil & Gas Accountability Project v. New Mexico Oil Conservation Commission, a court rejected a challenge to the Commission’s amendment of the “Pit Rule”. This post is not so much about the Pit Rule itself as it is the absence of legal and
Control-of-Well Insurance: The Words of the Policy Control
Gemini Insurance Company at al v. Drilling Risk Management Inc construed control-of-well and redrill/extra-expense provisions in an insurance contract.
The question and the rule
The question was whether an insurance policy covered post-blowout expenses (see facts below), and whether each blowout constituted a separate “occurrence”? If so, there would be two deductibles. The rule is
Texas Comptroller Prevails in Tax Exemption Claim
A fight over the Texas sales tax drew industry-wide attention when the trial judge commented from the bench that he was inclined to exempt purchases of casing, tubing, pumps and related services from Texas state sales tax. His actual ruling denied the relief sought by the taxpayer. In Southwest Royalties v. Hegar, the Texas
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
Your MSA is in Place – Now What?
Are you an operator who hires contractors on location, … a contractor who hires subcontractors, … the party to be indemnified for injuries to the other party’s employees? This post is for you.
Salas v. Allen Keller Company One, LLC, is not about master service agreements, but it is instructive. Want to avoid responsibility for
Hydrocarbon Exposure Dismissal Affirmed
You might recall previous entries discussing Parr v. Aruba (here is one) – a suit for personal injuries from oilfield pollution (and a $2.9MM verdict for the plaintiffs). Not all similar suits have the same result.
You could liken Cerny v. Marathon Oil and Plains Exploration & Production to a game of legal
Oh My! Oklahoma Court Allows Earthquake Case to Proceed
What should we make of the Oklahoma Supreme Court’s order sending a suit alleging injuries from an earthquake back to the trial court? Did the court unleash the lions, tigers and bears of the litigation world … or not? At this point, the answer is, not much for an injection well operator to worry about