One of the Permian’s Best Kept Secrets by Julie Anderson The West Texas District Export Council is one of the nationwide networks of District Export Councils which make significant contributions to America’s international competitiveness. The West Texas Council contributes leadership and international trade expertise to complement the U.S. Commercial Service’s export promotion efforts through […]
Opposites Attract
In the middle of a bout with the saber-rattling Bureau of Land Management over frac’ing regulations, the oil and gas industry is, it would seem, nearly back to “business as usual.” by Tony Burke Hydraulic fracturing was developed to stimulate wells and increase production. The practice’s experimental infancy dates back well over a […]
Under the Rotunda: The Battle Begins
By Lana Cunningham This month marks the commencement of a session worth scrutinizing. Jack Ladd, Jr., vice president and special counsel for the Permian Basin Petroleum Association, sizes up the 2015 Texas Legislative Session and what it means to the oil and gas industry. Obtain more funding for roads. Check. Lift the export […]
Keep Those Names Straight
Many companies operate more than one entity, and oil and gas operators are no different. But what they may not realize—or simply disregard—is the fact that insufficient separation between those entities could expose all to liability to all owned entities. The Eleventh Court of Appeals of Texas recently reviewed a trial court judgment that found […]
A Test of Allocation
Allocation wells have become a fairly hot topic with the Texas Railroad Commission, and Lessors. Although I have written about this previously, a refresher may be in order. The Texas Railroad Commission has been issuing permits since 1998 based on Production Sharing Agreements. These Agreements, signed by the interest owners, combine units or unpooled tracts […]
The Benefit of the Bargain
On February 27th of this year, the Texas Supreme Court heard oral argument in a suit filed by landowners (“Wheeler”) against Enbridge Pipelines (East Texas), L.P. (“Enbridge”). The basis of the suit was damage to land on a right of way. The fact that there was damage was not contested. What was contested was the […]
A Test of the “Right to Pool”
In January of last year, the Court of Appeals for the First District of Texas issued an opinion that centered on surface use by an oil and gas operator. The Court of Appeals affirmed the lower court’s judgment, which found in favor of the surface owners, Will and Loree Hegar. The operator, Key Operating & […]
Subsurface Trespass Considered
In a previous issue, we discussed the question of subsurface trespass, which was before the Texas Supreme Court in the case styled FPL Farming Ltd. v. Environmental Processing Systems, L.C. In that case, the Ninth Circuit Court of Appeals in Beaumont held that the operator, Environmental Processing Systems, L.C., (“EPS”) was immune from subsurface trespass […]
The Horizontal Severance Question
As many know, Pioneer Natural Resources USA, Inc., (“Pioneer”), recently requested that the Texas Railroad Commission amend the field rules for the Spraberry (Trend Area) Field in Districts 7C and 8 to allow for duplicate assignment of acreage when mineral rights were horizontally severed. Statewide Rule 40(d) prohibits the duplicate assignment of acreage. The Spraberry […]
From the General Counsel: A Matter of Balance
The Eleventh Court of Appeals, located in Eastland, Texas, recently dealt with an issue I tend to avoid, if I can, in these articles: the seemingly never-ending dispute between the respective rights of surface owners and oil and gas operators. In this unique case, the operator, Southwest Royalties, Inc. (SRI), sued the surface owner, Mr. […]
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