Case Study: Southwest Royalties v. Glenn Hegar, Comptroller of Public Accounts – Texas
Introduction: Texas faces possible Billions in tax refunds in an oil driller’s lawsuit, as energy companies are hoping for a huge windfall from the Texas Supreme Court. The state’s highest civil court last week agreed to hear a case hinging on whether metal pipes, tubing and other equipment used in oil and gas production should be exempt from […]
CASE STUDY: SUTTON VS. SM ENERGY CO – Perpetuating ORRIs By Continuous Operations Clauses
Issue: SM Energy Company filed a declaratory judgment action in Texas seeking confirmation of a lower court decision that a 1966 oil and gas lease terminated with respect to approximately 18,000 acres; that appellants’ ORRIs carved out of assignments of the lease were extinguished; and that SM was not obligated to pay appellants royalties based […]
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. […]
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. […]
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 […]
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 […]
