The Texas Supreme Court recently decided a case in which an oil company’s withholding of production payments was contested. In Freeport-McMoRan Oil & Gas LLC v. 1776 Energy Partners, LLC, ___ S.W.3d ___, 2023, WL ___ (Tex. May 19, 2023), two oil companies, Ovintiv and 1776 Energy, entered into an…
Texas Oil and Gas Attorney Blog
Fixed vs. Floating Royalty?
In Bridges v. Uhl, No. 08-21-00130-CV, (Tex. App.—El Paso 2022, no pet. h.) the El Paso Court of Appeals added it’s decision to the already substantial volume of court decisions grappling with the question of whether the royalty language in a deed was a fixed or a floating royalty. The…
An Interesting Analysis of the Pros and Cons of Fracking
I recently had occasion to reread an article from 2021 by Jude Clemente, a contributor to Forbes and the Principal at JTC Energy Research Associates, LLC. The article contains an excellent analysis of the benefits of fracking and the problems with the arguments against it. The article is entitled “Why…
New Texas Oil and Gas Force Majeure Case
The Texas Supreme Court has just issued an opinion in Point Energy Partners Permian LLC v. MRC Permian Co., ___ S.W.3d ___, 2023 WL ___, (Tex. Apr. 21, 2023) that involves the application of the force majeure language in an oil and gas lease. Force majeure is a legal doctrine…
Texas Supreme Court: Post Production Costs Added to Gross Proceeds Royalties
The Texas Supreme Court recently issued an opinion in a case in which royalties were calculated on more than gross proceeds. Specifically, the Court approved royalty language that calculated royalty on the total of gross proceeds (which by definition does not include expenses) and post-sale expenses. In Devon Energy Prod.…
Texas Supreme Court Interprets Mineral Interest in Deed
The Texas Supreme Court interpreted yet another confused mineral reservation in a deed in the case of Van Dyke v. Navigator Grp., ___ S.W.3d ___, 2023 WL ___ (Tex. Feb. 17, 2023). The 1924 deed contained a reservation of “one-half of one-eighth” of the mineral estate. The question was: did…
Seismic Permits in Texas
Texas oil and gas companies can engage in a variety of procedures as part of their exploratory process before they drill an oil and gas well. One such procedure is seismic testing or a seismic survey. Seismic testing is a process that results in an image of the subsurface of…
Texas Supreme Court Addresses Ratification by Accepting Royalty Checks
In a case last year before the Texas Supreme Court, BPX Operating Co. v. Strickhausen, 629 S. W. 3d. 189 (Tex. 2021), the Court addressed whether the acceptance of royalty checks by a lessor constituted a ratification of the oil company’s pooling of the leased premises in violation of the…
Solar Panel Problems
I get complaints weekly from Texas homeowners who have problems with the solar panels they have had installed on their roof or with the company that installed the panels. Of course, there are good companies that install solar panel systems. There are also a number of…
Texas Supreme Court Decides New Pipeline Case
The Texas Supreme Court recently issued its long-awaited opinion in Terrance J. Hlavinka et al v. HSC Pipeline Partnership, LLC, —S.W.3d— (Tex. May 27, 2022). There were two important issues in this case: (1) whether a pipeline company transporting polymer-grade propylene can be a common carrier with condemnation authority under…