The Texas 14th Court of Appeals recently interpreted a pipeline easement and that interpretation may have application for many other pipeline easements in existence in Texas. The case is Texas Land & Cattle II, Ltd. v ExxonMobil Pipeline Company. Texas Land & Cattle (TLC) owned real property in Harris County,…
Articles Posted in Oil and Gas Law
Language of an Assignment of Overriding Royalty Can Be Critical
The Texas Supreme Court decided a case recently involving an assignment of an overriding royalty interest (ORRI) in minerals located in Wheeler County, Texas. That case is Piranha Partners et al v. Joe Neuhoff et al. In 1975, Neuhoff Oil & Gas purchased an undivided two-thirds interest in a mineral…
Texas Railroad Commission Amends Rule regarding Assignment of Acreage
The Commissioners of the Texas Railroad Commission recently voted unanimously to amend Rule 3.40, which has to do with the assignment of acreage to pooling and proration units. The current rule provides that “… acreage assigned to a well for drilling and development, or for allocation of allowable, shall not…
The Validity of Top Leases
I recently had occasion to review the Texas Supreme Court’s decision on a long-running dispute between BP America and Laddex, Ltd. The case is centered around a disagreement of the terms in a decades old lease and its result has been significant for the energy industry. The case, known as …
Texas Supreme Court Decides Whether Will Beneficiaries Get Surface or Mineral Estate
Recently the Texas Supreme Court decided an interesting case in which it examined whether a will had given a surface estate or a mineral estate to the beneficiaries of the will. In ConocoPhillips et al v. Leon Oscar Ramirez Jr. et al, the testatrix, Leonor Juan, executed a will in…
New Oil & Gas Scam in Texas Curtailed by New Law
Texas has been, unfortunately, home to a number of oil and gas scams over the years. One of the most common is the company who wants to buy your mineral interests and who has you sign a deed before they pay you. Once they have a signed deed in hand,…
What Texas Landowners Should Know about Survey Permits for Oil and Gas Pipelines
As many Texas landowners are aware, oil and gas pipelines are being constructed at an almost frantic pace these days. The first time a landowner is aware that they may be asked to sign a pipeline easement is a usually a call from a land man or right-of-way agent requesting…
Mandatory Arbitration Clause in Texas Oil & Gas Lease is Enforceable
In Ridge Natural Resources, LLC v. Double Eagle Royalty, LP, 2018 WL 4057283 (Tex.Civ.App.- El Paso 2018), a case involving a dispute over ownership of mineral interests in Winkler County, Texas, the El Paso Court of Appeals upheld a mandatory arbitration clause in an oil and gas royalty lease.…
Texas Choice of Law in Oil and Gas Contracts
In general, Texas courts will enforce contracts — including oil and gas contracts — as those contracts are written unless the contract violates statutory law or public policy. These principles apply equally to choice of law provisions that may be inserted into oil and gas contracts. A recent case from…
Erroneous Use of Words “Overriding Royalty Interest” Does Not Make Mineral Estate Management Contract Ambiguous
Texas law strongly endorses the concept of freedom to contract and our courts have frequently emphasized this by enforcing the intent of the contracting parties. Indeed, intent of the parties is enforced even if the parties use words erroneously. An example of this comes from the case of Thompson v.…