Kouatli v. Endeavor Energy Resources L.P. offers valuable (and obvious) lessons on how NOT to perform a Master Service Agreement in the oil patch (or, per Billly Bob and friends, “The Patch”), to wit:
MEMORANDUM
From: Legal Department
To: Accounts Payable
Re: What we learned from Shell Western E&P, Inc. v. Pel-State Bulk Plant, LLC
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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