A question, not hypothetical: Can one provision in a comprehensive water purchase agreement lock a mineral lessee into a single alternative for every purpose under the sun? In Davenport v. EOG Resources, Inc., a court of appeals said “no”, affirming a $14.9 million jury verdict and judgment against Webb County, Texas
Co-author David LeonardIn a precursor of disputes sure to come, in Lyle v. Midway Solar, LLC, a Texas court of appeals delivered a win for solar energy by applying the accommodation doctrine in favor of a solar developer’s actual use of the surface of the land over speculative future development of the mineral estate.
The lesson for mineral and surface owners
Mineral owners: This decision should remind you to diligently monitor surface use and, as appropriate, intervene in the development process with informed feedback about your actual or potential surface use needs.
Surface users: Conversely, you should be willing to incorporate informed feedback from mineral owners into the design of surface projects. An arbitrary and unilateral designation of drilling areas is unlikely to suffice under many circumstances.
Continue Reading Solar Beats Minerals in a Texas Accommodation Doctrine Battle
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
At Looper Reed we advise our clients that it is good business to accommodate your neighbor informally, if you can. Sometimes that leads to attempted world domination, as Chamberlain learned from Hitler in 1938. Closer to home it is my college-age son using his bedroom floor as a summertime closet. It can also lead to