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TXO v. Vela Remembered in a Gas Royalty Case

By Charles Sartain on December 19, 2016
Posted in Lease Disputes, Royalty Disputes

flea flickerWestport Oil & Gas Company, L.P. v. Mecom et al. presented this question: Was the lease royalty based on a gas purchase agreement formula or on the royalty clauses’s market value at the well provision?

Spoiler alert: Invoking the seminal Texas Supreme Court decision in Texas Oil and Gas Corporation v. Vela…

Arbitration in Louisiana – Another Budding Romance?

By Charles Sartain on December 6, 2016
Posted in Contract Disputes, Litigation

omegaAre Louisiana courts as enamored with arbitration as their Texas counterparts? Looks like it. East of the Sabine, submitting your dispute to arbitration means you are pretty much saying adieu, farewell and bye-bye to a judicial mulligan.

In ExPert Oil & Gas, LLC v. Mack Energy Co., et al an arbitrator’s mistaken calculation did not…

The Rule Against Perpetuities is Alive and Enforceable in Oklahoma

By Charles Sartain on November 30, 2016
Posted in Contract Disputes, Land Titles

perpetuityToday we venture into Oklahoma, to be instructed on the Supreme  Court’s treatment of the Rule Against Perpetuities. First, the Rule: No property interest is good unless it must vest, if all, not later than 21 years after some life in being at the creation of the interest.

In American Natural Resources LLC v. Eagle …

Louisiana Statutory Penalties Imposed on Operator

By Charles Sartain on October 21, 2016
Posted in Legislation, Litigation, Pooling and Unitization

dylanIf you’ve ever tried to escape penalties for the operator/producer’s failure to comply with La. R.S §30:103.1 and §103.2, take comfort in XXI Oil & Gas, LLC v. Hilcorp Energy Company.  You are not alone. No excuse has satisfied the courts, and there is none here.

The statutes (links above) require information…

Assigning By “Stratigraphic Equivalent”? Be Careful

By Charles Sartain on September 13, 2016
Posted in Contract Disputes, Land Titles, Purchase and Sale Agreements

stratigraphic formation

Co-author Brooke Sizer

How many of your mineral conveyances are described like this:

… all of Sellers’ right, title and interest in and to (a) the oil, gas and other minerals in, to and under the lands … ONLY INSOFAR as such oil, gas and other minerals are located below that depth which is the…

When Can Employee Policies Be Amended?

By Charles Sartain on August 9, 2016
Posted in Contract Disputes

pete fountainCo-author Michael Kelsheimer

Thinking about changing an employee policy in Texas? Kubala v. Supreme Production Services, Inc. says you can do it (almost) whenever you want. Want to make employees arbitrate their disputes? You can do that too.

Kubala’s employer Supreme announced a new policy requiring employees to arbitrate employment disputes, including Fair Labor Standards…

About Charles Sartain

I have been helping clients of all types resolve their commercial disputes for most of my 35 years as a lawyer. Of the many industries in which I have worked, the energy business is the most fascinating…More

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