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Texas Oil and Gas Attorney Blog

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Who Has the Burden of Proof to Establish the “Unsound Mind” Exception to the Statute of Limitations

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…

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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…

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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…

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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…

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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…

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