The oil and gas production industry operates in a tough position. On the one hand, oil and gas production are critical economic drivers in the United States. Oil and gas generates hundreds of thousands of jobs and contributes 8% of the U.S. Gross Domestic Product, according to the American Petroleum…
Texas Oil and Gas Attorney Blog
Beware the Unintended Consequences of Drilling Bans
Environmental groups in a number of states are pushing for ballot initiatives to ban or limit drilling for oil and gas. Most reasonable people, and I believe many oil and gas companies, agree that regulations are appropriate, especially for drilling in environmentally sensitive areas or near residential developments. But few…
“Retained Acreage” Clauses in Oil and Gas Leases Part I: Endeavor Energy
In two recent cases, the Texas Supreme Court reviewed what are called “retained acreage” clauses in gas and oil leases. Consistent with recent precedent, the Court instructs that these clauses are to be interpreted based on the language used and that the intent of the parties is to be the…
Texas Supreme Court Changes the Rule Against Perpetuities in the Oil and Gas Context
In the case of ConocoPhillips Co. v. Koopmann the Texas Supreme Court held that the Rule Against Perpetuities (“the Rule”) did not void a 15-year non-participating royalty interest that was reserved in a deed. In doing so, the Court changed the way the Rule applies to oil and gas deeds.…
Texas Property Law: The Essence of a Life Estate
In the recent opinion of Knopf v Gray, the Texas Supreme Court instructs as to the essence of a life estate under Texas law. Whatever specific words are used to create a life estate, a testator must express three ideas: Any land granted is subject to the limitations that it…
Fraud, Justifiable Reliance and Texas Oil and Gas Leases
A January 2018 case from the Texas Supreme Court, JP Morgan Chase Bank, N.A. v. Orca Assets GP, LLC, the Court dealt with justifiable reliance which is an element of a common law fraud and negligent misrepresentation claim. In this case, there were too many “red flags” for the plaintiff…
Texas Property Law: Adverse Possession Against a Co-Tenant
The recent case of Hardaway v. Nixon, decided by the San Antonio Court of Appeals, provides an example of the doctrine of adverse possession as it relates to co-tenants. The trial court granted summary judgment in favor of the landowners claiming adverse possession. The Court of Appeals reversed and held…
Texas Statute of Frauds and The Partial Performance Exception
Under Texas law, the Statute of Frauds requires that contracts regarding the sale of lands be in writing. There are some exceptions to this “in writing” requirement, particularly if the buyer has partially performed under the contract. The case of Zaragoza v. Jessen provides a good reminder of the principles…
Texas Premises Liability
A recent case from the Houston Court of Appeals reminds us that, at least in Texas, if you are renting a house and you walk over broken concrete for months, you cannot sue your landlord if you fall on the broken concrete. See Phillips v. Abraham, 517 S.W.3d 355 (Tex.Civ.App.…
Interpreting Texas Wills: “Farm Lands and Pasture Lands” Includes the Mineral Estate
In 1924, Cora McCrabb (along with two co-owners) owned 1,448.50 acres of farm and pasture land. In that same year, Cora executed her Last Will and Testament, bequeathing all of her “farm lands and pasture lands” equally to her three grandchildren, Jessie, J.F., and Mary Lee McCrabb. Cora gave the…