The United States Court of Appeals for the Fifth Circuit issued an unpublished opinion last year in Waggoner v. Denbury Onshore, LLC, et al. concerning the application of state antitrust law to royalty payments. It should be noted that while the opinion is instructive on how the 5th Circuit Court…
On May 12, 2016, the United States Environmental Protection Agency (EPA) issued its final Methane Rule, mandating new limits on methane gas emissions, volatile organic compounds (VOCs) emissions and other by-products such as benzene associated with oil and natural gas production wells and storage tanks. The new EPA rule is…
In 1994 Roland Oil Co. acquired the North Charlotte Field Unit Lease in Atascosa County, Texas. The Lease contained 31 wells, with the oldest wells drilled sometime in the 1950s. The Lease contained both active and inactive wells. Rule 14 of the Texas Railroad Commission requires that “dry or inactive…
In an earlier blog post, we discussed the Texas fracing case that was headed to the Texas Supreme Court for further review. On April 24, 2015, the Texas Supreme Court issued its opinion in In Re Steven Lipsky, and determined that the Texas Citizens Participation Act does not require that…
The Texas Supreme Court recently granted a petition for review in the case of Denbury Green Pipeline-Texas LLC v. Texas Rice Land Partners. The review will focus on how the courts are to apply a test created by the Texas Supreme Court concerning when an entity may identify itself as…
Up until recently, to the frustration of the IRS, the cost basis for mineral interests and other assets for estate tax purposes did not have to be the same as the basis used for income tax purposes. In other words, the executor of an estate could use a lower value…
The Texas Supreme Court recently addressed how a bequest in a will of a double fractional oil and gas interest should be interpreted in Hysaw v. Bretton et al in an opinion entered on January 29, 2016. A double fraction occurs when an instrument expresses a royalty interest as the…
On January 14, 2015 the U.S. Environmental Protection Agency (“EPA”) announced that it will release a draft rule aimed at curbing emissions of methane. This new rule will directly target new oil and gas production sources and natural gas processing and transmission. The EPA wants to reduce current emissions of…
I tell all my Texas clients (and anyone else who will listen) never to sell their mineral interests. There are a number of reasons why: 1. About 99.9% of the companies who claim to buy mineral interests are scams. What often happens is that they send you a solicitation letter…
On May 18, 2015, the Texas Governor Greg Abbott signed HB 40 into law. The law is effective September 1, 2015. This new law effectively prohibits local city and county governments and subdivisions from regulating surface oil and gas activity in their jurisdictions. The law provides that all such regulation…