Estimates are that nations representing about half of the world’s gross domestic product (GDP) are voting this year, with economies, immigration, and energy transition among the top issues. As the world’s third most populous nation and its largest single economy, the United States factors heavily on the global scene. What happens in the United States […]
New Mexico: Land of Contrasts
The oil and gas industry in New Mexico in 2024 is like a boxer who keeps taking hits, but remains standing. Some hits are glancing blows, and some are near misses. From legislative to legal to development of the southeastern corner of the state, there are challenges—and opportunities in the year ahead for New Mexico’s […]
Doing the Math on Double Fractions
The Texas Supreme Court recently accepted and quickly disposed of a petition for review from the Fourth Court of Appeals in San Antonio, titled Thomson v. Hoffman, by vacating the appellate court’s order and remanding the case. The issue involved yet another older (specifically, 1956) deed. The main question centered on whether the language of […]
Who Controls a Well’s Produced Water?
An increasingly odd operating issue (that has only been an issue in the last few years) may be in front of the Texas Supreme Court next year… if they agree to hear it. The controversy swirling up focuses on one question: who has the right to own and control produced water? Yes, you read correctly. […]
The Safe Harbor Provision: from Choppy Waters to Clear(er) Sailing
I previously wrote about a case pending opinion in the Texas Supreme Court—Freeport-McMoran Oil & Gas, LLC and Ovintiv USA Inc., v, 1776 Energy Partners, LLC. Recently, the Court issued an opinion which should have operators letting out their collectively held breaths. To recap, the suit was originally brought by 1776 Energy Partners, LLC, against […]
The Safe Harbor Provision Gets Scrutinized
As most operators are aware, the Texas Natural Resources Code requires payment of proceeds within a specific timeframe, but it also has a “safe harbor” provision that allows operators to suspend payment of proceeds when there is a (1) dispute concerning title that affects distribution of payments; or, (2) reasonable doubt about whether the payee […]
Double Fractions Demystified
Van Dyke v. Navigator Group[1] concerns a dispute that has lasted a decade, as well as an issue that, for multiple decades, has plagued energy practitioners and fueled countless mineral ownership lawsuits: “the ‘double-fraction’ dilemma.” This use of two fractions is typically found in mineral conveyances drafted in the first half of the twentieth century. […]
Interpreting Force Majeure
Recently the Texas Supreme Court heard oral arguments in a case titled Point Energy Partners Permian, LLC, et al., v. MRC Permian Company, which is a review of an El Paso Court of Appeals’ decision regarding the interpretation of the force majeure clause contained in the litigants’ lease. The underlying facts are as follows: MRC […]