In the recent case of Rodney Draughon v. Joycie Johnson, the Texas Supreme Court determined who would bear the burden of proof to negate the “unsound mind” tolling of the statute of limitations for a quiet title lawsuit. A “quiet title” suit is a lawsuit to establish legal title to…
Texas Oil and Gas Attorney Blog
Texas Supreme Court Decision Denies Oil Company’s Claim of Ratification by Royalty Owner
The Texas Supreme Court, in the recent decision of BPX Operating Co. et al. v. Margaret Ann Stockhausen, denied an oil company’s claim that acceptance of royalty checks by the mineral/royalty owner ratified the oil company’s illegal pooling of her property. Strickhausen owned property in LaSalle County, Texas. She negotiated…
Are Texas Allocation and Production Wells Now Void?
Production sharing and allocation wells have been drilled in Texas for some time, and have been used almost exclusively for horizontal wells. (An allocation well is a horizontal well drilled across two or more lease lines without creating a pooled unit that includes the leases. A production sharing well is…
Proposed Texas Legislation Will Hurt Royalty Owners
In Texas, the Natural Resources Code, in Section 91.402 governs when royalties must be paid to royalty owners. Section 91.402(b) provides that royalty payments may be withheld without interest if there is a dispute concerning title that would affect distribution of payments or if there is a requirement in a…
Possible New Protection for Texas Royalty Owners Whose Operator is in Bankruptcy
Given the stresses on the oil and gas industry over the last year, it’s not surprising that there have been many oil company bankruptcies, both in Texas and throughout the country. Royalty owners throughout Texas have been getting notices that the operator who is paying their royalties have filed for…
Important Texas Supreme Court Decision Regarding Deduction of Post Production Costs from Royalties and Free Use of Gas
As a Texas oil and gas attorney, I often find it necessary, when negotiating an oil and gas lease for a client, to add an addendum that modifies some of the terms in the printed lease. The printed lease form is often extremely operator oriented and does not give the…
Solar Panels May Increase Global Warming
From what I read, it appears that there are many people, including politicians in our federal government, who believe that electricity produced by solar panels should be a substitute for oil and gas production. However, there are a number of aspects of energy produced from solar panels that don’t appear…
Unintended Consequences of Eliminating Oil and Gas
As anyone who reads my blog is aware, I am a Texas oil and gas attorney who only represents mineral, royalty and surface owners and I never represent oil companies. My passion has always been helping land and mineral owners make the best use of their land and mineral assets…
Unintended Consequences of Canceling the Keystone Pipeline
As most people are aware, President Biden has canceled the permit for the Keystone pipeline with one of his first executive orders. While environmental interests certainly applaud this move, there will be consequences that politicians may not be taking into account. First, without the pipeline, oil will need to be…
Solar Power vs the Mineral Owner
The El Paso Court of Appeals recently decided a case that involved the use of the surface of land by a solar farm that was objected to by the Lyles, the mineral owners of the property. That case is Lyle et al v. Midway Solar LLC et al. The Defendant…