Collecting royalties from oil and gas production is one of the ways that a Texas landowner can generate revenue from their real estate. Texas property owners who own their minerals can sign an oil and gas lease so that oil and gas can be produced from the land, in exchange…
Articles Posted in Oil and Gas Law
Texas Court Interprets a 1/8 Royalty Clause
As we discussed recently regarding the Texas Supreme Court case of Hysaw v. Dawkins, 483 SW 3d 1 (2016), old deeds, oil and gas leases, and other documents containing “1/8th royalty” clauses continue to be the source of confusion among the public, lawyers, and sometimes courts. For decades, the standard…
“Fraction of Royalty” or “Fractional Royalty”? Texas Supreme Uses a Case-By-Case Analysis
The question of “fractional royalty” vs “fraction of royalties” has historically been the source of enormous confusion for Texas mineral owners and oil and gas attorneys. The Texas Supreme Court recently provided more guidance on the question in the case of Hysaw v. Dawkins, 483 SW 3d 1 (2016). This…
Did a Texas Deed Convey a Mineral Interest or a Royalty Interest?
When you ask a Texas oil and gas or real estate attorney to draft a deed for you, one of the first things they will ask you is just what do you want to convey: the surface, the water rights, the mineral interest, only royalties from the mineral interest or…
Omitted Legal Descriptions in Sale of Oil and Gas Leases in Texas
In a case that is probably a recurring nightmare for oil and gas attorneys, the Texas Court of Appeals recently addressed the question of what constitutes a material change to a written agreement involving the purchase of oil and gas leases in the case of Ranger Energy LLC v. Tonya…
What Duty Does the Owner of an Texas Executive Interest in Minerals Owe to the Non-Executive Interest?
Texas oil and gas lawyers occasionally find themselves representing non-executive mineral owners. A non-executive mineral or royalty owner is someone who owns oil or gas royalty rights to a particular area of land, but who does not have the right to negotiate or sign a lease for the minerals and…
Texas Railroad Commission May Be Liable for Plugging the Wrong Well
Texas oil companies, mineral owners and oil and gas attorneys are all familiar with the Texas Railroad Commission. The Commission regulates oil and gas drilling and production and oil and gas pipelines in Texas. The Commission is pretty diligent in making sure abandoned wells are properly plugged. Unfortunately, on one…
Proposed New Law for Pipeline Condemnation Did Not Pass the Texas Legislature
Texas landowners and oil and gas attorneys have been watching Senate Bill 740 with interest. This bill, introduced by several Texas senators, would have increased landowner protections in the event a pipeline company sought to obtain an easement on their property using eminent domain. You can read the full text…
Does The U.S. Army Corps of Engineers Have The Authority To Impose an Oil & Gas Well Ban in Texas?
There is a controversy between the Texas Railroad Commission and the US Army Corps of Engineers that is being followed closely by many Texas oil and gas attorneys and mineral owners. The Texas Railroad Commission is the state’s oil and gas regulator, and last year it bumped heads with the…
Texas Jurisdiction of Oil and Gas Contamination Damages
The Texas Supreme Court recently delivered an opinion that was not surprising to Texas oil and gas attorneys in the case of Forest Oil Corporation v. El Rucio Land and Cattle Co. The Court originally denied the review of the Corpus Christi Appeals Court decision affirming a $15 million dollar…