How To Dissect a Lease
Intro: I have received a lot of questions by those new to the oil and gas business about how to break down a lease. For those of you who are veterans, please use this blog as a review, or forward it to any newbies who may benefit. The Contracts: When a client comes to me with information […]
CASE STUDY: HOOKS v. SAMSON LONE STAR, Ltd.
How Much Due Diligence is Due? Introduction: The Hooks v. Samson case is one of the most important recent decisions handed down by the Texas Supreme Court (January 2015) with regard to oil and gas policy issues. Industry professionals are abuzz about its ramifications and it will be in the business literature for a while. […]
Take Points: Horizontal Drilling – What and Where is the Point?
Definition: A take point in a horizontal well is a point along a horizontal drainhole where oil or gas can be produced from the reservoir or defined field. A horizontal well is tantamount to a series of vertical wells drilled along the linear path of the horizontal wellbore. Each take point is the equivalent of […]
Case Study: Chesapeake Exploration, L.L.C. v. Hyder – Royalty Clauses: Free and Clear or Cost Free
Background: The appeal arose out of a dispute involving the construction of the royalty and overriding royalty clauses in the Hyder oil and gas lease, between Appellants – Chesapeake Exploration, L.L.C. and Chesapeake Operating, Inc., and the Appellees – the royalty interest holders. Royalty owners filed suit against Chesapeake alleging a breach of the lease. […]
The Oil Field Night Before Christmas
‘Twas the night before Christmas, and all through the patch, Not a roughneck was stirring, not even to scratch. The drill pipe was stacked by the derrick with care, In hopes a new drill bit soon would be there. It had all gone so well for the first thousand feet, And it looked like the […]
Case Study: Sauder V. Frye – Unitization – Timely Recording Necessary to Perpetuate Non-Drillsite Tracts
Background: The case involved an oil, gas and mineral lease with A.L. Sauder, Jr., as lessee and Rex Allen Frye as lessor. The primary term of the Frye lease expired May 24, 1979. Sauder, Appellant, contended the lease was extended by the execution of a designation of pooled unit, which unit included the Frye lease. […]
Common Carrier or Gas Utility: Should Pipelines be Able to Condemn land for right-of-way?
Today we have as our guest John McFarland who has given us permission to repost his blog on the RRC proposed rule concerning pipelines and eminent domain. By John McFarland: Texas Railroad Commission Proposes New Rule on Authority of Pipelines to Condemn Private Property: The Texas Railroad Commission has published a proposed rule that will change how […]
Case Study: Merriman vs. XTO – Accommodation Doctrine and Surface Owners
Issue: What did Merriman, the surface owner, have to prove in court to prevail against XTO, the lessee, for lack of accommodation of surface use when XTO drilled a well? Background: Merriman, a pharmacist and part-time cattle rancher, owned the surface of a 40 acre tract of land in Limestone County, Texas. Merriman had a […]
Happy Hyperlinking with David Dixon
Today we have as our guest David Dixon. I’ve asked David to join us for this interview because he is the techno madman who taught me how to create and edit hyperlinks in an Excel spreadsheet. MW: David, what is a hyperlink? DD: A hyperlink is usually designated by blue colored text in a document […]
BACK TO SCHOOL: Seasoned Professionals Advise Newbie Landmen and Attorneys about Researching Title
Becoming a good attorney or landman takes not only a lot of study, but sometimes, more importantly mentoring from seasoned professionals. Below are tips from attorneys and landmen that may seem obvious later, but early in a career may be valuable to learn. Derek Gibson – Midland, Texas: I heard this conversation between two landmen. […]
