To our bad guys, 2019 was a year flush with hope and opportunity; it ended with recidivism, more misery from Venezuela, a charlatan, an Okie who pulled a multi-million dollar fast-one on Chesapeake and, as in years past, a peek into the darker side of the human condition.
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Perp: Justin Lane Foust.
Crime: Wire
In Town of Flower Mound v. Eagle Ridge Operating LLC, an operator’s injunction against enforcement of a local ordinance was dissolved. EagleRidge operates gas wells in the Flower Mound. A Town ordinance prohibits work on gas wells (other than drilling) at times other than between 7 a.m. and 7 a.m. Monday through Friday and certain times on Saturday.
EagleRidge tried to avoid enforcement of the ordinance by:
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It’s still true, “Whiskey’s for drinkin’, water’s for fightin’.” Gray Reed lawyers Brock Niezgoda and Stephen Cooney spoke to TIPRO’s summer conference on the use, control and ownership of water in oil and gas operations. Here is their PowerPoint.
The takeaways:
Groundwater
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Speedier than Jesse Owens in the ‘36 Olympics, Democrats railroaded the Colorado legislature passed, by party-line vote, Senate Bill 181, a new law that will have a profound effect on oil and gas operations in that state. It replaces Proposition 112, which was rejected by 57 percent of the voters just five months ago.
Among other effects, the new law mandates the Colorado Oil and Gas Conservation Commission to redirect its priorities from oil and gas production to protection of public health, safety and welfare, and gives local governments more control over drilling and production. Rather than hear it from me, here are reports from those who were closer to the action:
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Co-author Ethan WoodIn Johnson et al vs. Chesapeake et al, unit operator Chesapeake deducted post-production costs (gathering, compression, treatment, processing, transportation and dehydration) from non-operating, unleased mineral owners’ share of production proceeds. The UMO’s (so-called by the court) sued. The federal district court concluded that La. R.S. 30:10(A)(3) governs the dispute, and post-production costs could not be recovered from the UMO’s share of production proceeds.
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Co-author Niloufar HafiziThe Colorado oil and gas industry breathed a collective sigh of relief when the state Supreme Court announced its unanimous decision in Colorado Oil and Gas Conservation Commission v. Martinez. The court sided with the Commission in rejecting a proposed rule by a group of teenage plaintiffs that would have precluded the
At least some landmen are once again free to be landmen in Ohio. You will recall that in Dundics v. Eric Petroleum the Ohio Supreme Court declared that the Ohio Real Estate Broker statute prohibited land professionals from practicing their trade in that state unless they were licensed as real estate brokers. As predicted, the Industry appealed to the Legislature, which last month in Senate Bill 263 (here is the part pertaining to land professionals) revised statutes governing the activities of oil and gas land professionals. The fix isn’t perfect but is better than the Dundics situation.
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I report herein on 2018’s parade of reprobates, rapscallions and others generally lacking in moral hygiene. We reflect on a mother’s love, corruption in Venezuela, a disloyal employee, stealing from friends, a disgraced politician, and the wisdom of Forrest Gump.
Perp: Carol Faulkner
Violation: Not a crime but worthy of your consideration for its shamelessness. A “mendacious filing” in a an SEC civil enforcement action against Chris Faulkner, and she “repeatedly and willfully abused the judicial system” in connection with his fraud case.
Sentence: Sanctioned $5,205.50. This was after she was held in civil contempt and fled to Lebanon.
Titillating fact: This is the Frack Master’s OWN MOTHER. Merle was right; Mama failed … in so many ways.
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Perps: In “Operation Money Flight“, seven defendants (six Venezuelians and a Swiss banker), nine co-conspirators, and three unnamed “government officials”.
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Are you buying oil and gas leases in Ohio and expecting to be paid for your work? Consider Dundics v. Eric Petroleum, in which the Ohio Supreme Court concluded that land professionals who do not possess an Ohio real estate broker’s license are not entitled to bring suit to recover compensation for acquiring oil and gas leases.
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Did Texas law or New Mexico law apply to knock-for-knock indemnity provisions in a Master Work and Services Agreement? When a contract explicitly calls for Texas law, that is likely to be the outcome, as it was in North American Tubular Services LLC v. BOPCO, LP.
Takeaways