Real author Paul YaleYou’re in for a treat today; a report from my Gray Reed partner Paul Yale on the Texas Supreme Court decision, Yowell v. Granite Operating et al, dealing with anti-washout clauses in assignments of overrides and that bane of all first year law students, the Rule Against Perpetuities. The Court,
Co-author Chance DeckerIs an overriding royalty interest lasting beyond the term of a lease-now-in-effect impossible to create? You saw the recent Texas Supreme Court opinion invalidating an anti-washout clause in TRO-X v. Anadarko Petroleum Corp. Now, you see Tommy Yowell et al v. Granite Operating Company et al. In light of these opinions one could wonder if an override is as valuable a tool in an oil and gas trade as it used to be.
An assault on overrides?
Continue Reading Anti-Washout Clause Defeated by the Rule Against Perpetuities
Co-author Chance DeckerThe 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.
Continue Reading Opinions to Expect From the Texas Supreme Court
To begin, choose from these candidates for the all-world spendthrift hall of fame:
In Bradley v. Shaffer, Darrell, a beneficiary of a mineral trust established by his grandparents, purported to convey to Bradley his mineral interests that were subject to the trust and any interest held in trust that he might acquire in the future. The trustees sued, alleging that Darrell had no authority to convey his beneficial interest. Bradley argued that an extension of the trust violated the Rule Against Perpetuities. Spoiler: It didn’t.
A primer on Texas trust law … who owns what and other rules:
Continue Reading Mineral Conveyance Thwarted by a Spendthrift Provision
We have a new format. And we’re still gluten free!
Co-author Alexandria Twiss
In BP America v. Laddex, Ltd. the Texas Supreme Court affirmed that in a lease termination case the trial court cannot limit the jury’s consideration of production in paying quantities to an arbitrary time period. The court also applied the Rule Against
Today 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.