One of the most common and difficult questions asked of oil and gas attorneys concerns maintenance of oil and gas leases that are beyond their primary terms. Most modern-day lease forms contain a continuous development clause, which requires the lessee to drill multiple wells within specified time periods in order to maintain the entire leased
Oil & Gas
Tighter pipeline regulations part of second COVID-19 stimulus package
On December 21, 2020 Congress passed the lengthiest piece of legislation in its history—nearly 5600 pages. While most Americans are focused on the provisions of the “Consolidated Appropriations Act, 2021” related to coronavirus response and recovery, it also included provisions that will directly impact pipeline operators.
The “Protecting Our Infrastructure of Pipelines and Enhancing…
Piranha Partners v. Neuhoff: Texas Supreme Court Chews up Court of Appeal’s Ruling on Interpretation of an Assignment of Overriding Royalty Interest
Precise drafting is critical to a successful transaction, even involving a seemingly simple assignment of an overriding royalty interest. In Piranha Partners v. Neuhoff, 596 S.W.3d 740 (Tex. 2020), the Texas Supreme Court was called upon to determine the scope of an assignment of overriding royalty interest. The issue was whether the overriding royalty…
The Wenske Case – The Default Rules of Deed Construction Still Hold Sway
Title to minerals and royalties in Texas has long been riddled with problems arising from subject-to, reservations-from, and exceptions-to provisions. Over the years these problems have naturally found their way into the Texas courts, highlighting the critical importance of drafting language to avoid ambiguity and clarify intent. Emphasis is placed on intent, as unambiguous…
Oil and Gas Contract Drafters: Say What You Mean to Say
The drafters of an Assignment of Overriding Royalty Interest in Burlington Resources Oil & Gas Company, L. P. v. Texas Crude Energy, LLC did not “say what they meant to say” and received an admonition from the Texas Supreme Court. In Burlington, the Court determined a royalty interest owned by Texas Crude was subject…
ConocoPhillips Indemnity Demand for Environmental Clean-up Costs Confirmed
On October 1, 2018, the U.S. Supreme Court declined to review a Texas Supreme Court’s ruling finding Noble Energy Inc. (“Noble”) liable for cleanup costs paid by ConocoPhillips Co. (“ConocoPhillips”) to settle a separate Louisiana oilfield legacy case. The Texas Supreme Court ruled that Noble inherited the indemnity obligation to ConocoPhillips from its predecessor, which …
Do Texas Oil and Gas Operators Always Have to Pay Royalties on Time?
By statute, royalties on oil and gas production are due on or before 120 days after the end of the month of first sale of production from the well. This gives operators about four months after a well begins producing to obtain title curative, set up a pay deck for the well, issue division orders…
Kean Miller Drills Deeper into Texas, Louisiana to Serve Energy, Oil & Gas, and Petrochemical Clients
Kean Miller is growing again, opening offices in The Woodlands, Texas, and Lafayette, Louisiana, by combining with the energy-focused law firm Dupuis & Polozola.
This expansion builds on Kean Miller’s Houston office opening in 2017 and strengthens the firm’s portfolio of legal and business services to energy, oil & gas, and petrochemical industry clients.
The…