In Ridge Natural Resources, LLC v. Double Eagle Royalty, LP, 2018 WL 4057283 (Tex.Civ.App.- El Paso 2018), a case involving a dispute over ownership of mineral interests in Winkler County, Texas, the El Paso Court of Appeals upheld a mandatory arbitration clause in an oil and gas royalty lease.…
Texas Oil and Gas Attorney Blog
Texas Choice of Law in Oil and Gas Contracts
In general, Texas courts will enforce contracts — including oil and gas contracts — as those contracts are written unless the contract violates statutory law or public policy. These principles apply equally to choice of law provisions that may be inserted into oil and gas contracts. A recent case from…
Erroneous Use of Words “Overriding Royalty Interest” Does Not Make Mineral Estate Management Contract Ambiguous
Texas law strongly endorses the concept of freedom to contract and our courts have frequently emphasized this by enforcing the intent of the contracting parties. Indeed, intent of the parties is enforced even if the parties use words erroneously. An example of this comes from the case of Thompson v.…
Texas Court Holds Participating Oil and Gas Lessee Co-Tenant Owes No Royalties to the Nonparticipating Co-Tenant’s Lessors
The recent case of Devon Energy Production Co. v. Apache Corporation, Case No. 11-16-00105-CV (Tex.Civ.App.- Eastland 2018, pet. filed) addressed a novel question under Texas law about whether an oil company cotenant owed royalty payments to the other co-tenant oil company’s lessors. The trial court said no and the Court…
Texas Law Now Allows Notarization Online
In 2017, the Texas Legislature passed House Bill 1217, which allows Texas notaries to do remote notarization. Beginning July 1, 2018, commissioned notaries can apply to be commissioned as an Online Notary Public. In August 2017, the Texas Secretary of State published the revised administrative rules that govern the new…
Course of Dealing Results in Waiver in Texas Groundwater Lease Case
The course of dealings between the parties over a period of time can lead to modifications and waivers of provisions within an oil and gas lease and related contracts. A recent Dallas Court of Appeals case, Tollett v. MPI Surface, LLC, Case No. 05-17-00435-CV (Tex.Civ.App.- Dallas, no writ), illustrates that…
Texas Statute of Frauds Renders Land man Commission Contract Unenforceable
A recent case from the Texas Court of Appeals in Waco held that the Texas Statute of Frauds — Tex. Bus. & Com. Code, § 26.01 — rendered a land man’s commission contract unenforceable. The Court also upheld the trial court’s determination that none of the exceptions to the Statute…
Subsurface Trespass by Hydraulic Fracturing? Yes, Says Pennsylvania Court
Normally, this blog discusses Texas court cases and decisions. However, occasionally, a court decision from one of our sister states is of interest. Such is the case with Briggs v. Southwestern Energy Production Co., 184 A.3d 153 (2018). In Briggs, the Pennsylvania Superior Court — equivalent to our Texas Courts…
Texas Supreme Court Offers Instruction on Offset Wells in Texas
Last summer, we wrote about an interesting case involving offset wells and covenants (both implied and express) to prevent drainage in shale formations. As discussed in our earlier article, the San Antonio Court of Appeals reversed summary judgment for Murphy Exploration and remanded the case back to the trial court.…
Trespass to Try Title is the Exclusive Cause of Action to Establish Ownership in Texas
The recent Court of Appeals case of Lackey v. Templeton, 2018 WL 3384570 (Tex. Civ.App. — Beaumont, no pet.), provides another illustration of the legal principle that, in Texas, if you are challenging who owns certain real property, you MUST bring a trespass-to-try-title claim. No other cause of action — such…