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.
Author Manning Wolfe
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.
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”.
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.
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: