BBQ or Boudin? Texas or Louisiana Law: What’s the difference?
PRIMARY DIFFERENCE: The Louisiana oil and gas system is based on a civil code as opposed to the Texas paradigm based on common law. This difference originated with the development of Louisiana by the French, while Texas, and the other 48 states, were developed under case law. There are critical differences between the laws of […]
Title Defect Notice during Due Diligence – When and How?
Deadline: The Purchase and Sale Agreement (PSA) for energy properties usually contains a deadline called the Defect Notice Date. A Buyer must conduct its title review by that date and notify the Seller of any Title Defects. The Due Diligence Period, which may continue past the Defect Notice Date, allows the Buyer access to the […]
10 Most Common Title Curative Issues
Definition: Title curative is a set of procedures used to “cure” defects in chains of title, such as correcting instruments that are erroneous or ambiguous. The process is focused on whether the actual use and possession of the land under review is consistent with record title. Once ownership is established, an attorney often memorializes title information […]
POOLING CLAUSES VS. RULE OF CAPTURE
Definition: Pooling involves the consolidation and combining of leased land with adjoining leased tracts. The area of combined tracts is called a pool or a unit. Pooling has the benefit of uniting all landowners’ leases into a common pool with one common underground geological reservoir, often in connection with a program of uniform well spacing. […]
Case Study: Can an Oil Company use the road from one tract of land to produce oil from another tract?
Issue: Will and Loree Hegar filed suit to permanently enjoin Key Operating & Equipment, Inc. from continued use of a road located on their surface estate. The road was used to facilitate production of oil from a neighboring property. Background: In 1994, Key obtained an oil and gas lease covering a tract of land, the […]
Implied Covenants: The Lease Doesn’t Say that, so Why do We Have to do it?
Definition: Implied covenants in an oil and gas lease are obligations, usually by the lessee, that may not be spelled out specifically in the lease.
DUHIG RULE DEMYSTIFIED
Duhig comes into play when a mineral owner owns less than 100% of the property conveyed by a Warranty Deed, and reserves a fractional interest. It boils down to interpreting a fraction of a fraction. The rule was borne from the Texas case Duhig v. Peavey-Moore, 135 Tex. 503, 144 S.W.2d 878 (Tex. 1940). Several other states have adopted the Duhig rule, either in whole, or with modifications, including Arkansas, Oklahoma, North Dakota, and Wyoming.
IS HABENDUM A CLAUSE OR A DISEASE?
Habendum is a strange word that sounds more like a physical condition than a clause in a Deed or Oil and Gas Lease. The term springs from early 17th Century Latin, literally translating “that is to be had” or “that must be had”.
WHAT IS A JOA AND WHY DO I CARE ABOUT IT?
JOA is the common term used to describe the Model Form Operating Agreement related to the exploration and production of oil and gas under certain leases (The Contract Area). It also provides a method for solving disputes, which may arise during the course of business as outlined in the JOA. The scope of this blog is not to cover the entire agreement, or its history, which would take volumes, but to give a snapshot of what the JOA covers and why it’s so important to those in the energy arena.
WHAT IS A HOLOGRAPHIC WILL AND HOW DOES IT CHAIN TITLE?
A Holographic Will is a will entirely in the handwriting of the testator. These are addressed in various jurisdictions under the Probate Code for each state. In Texas, they are covered in Section 59 of the Texas Probate Code, as follows:
