Industrial and political insiders sound off in response to the killing of the Keystone XL pipeline in November. by Tony Burke, Assistant Editor On Nov. 6, President Obama rejected TransCanada Corp’s Keystone XL pipeline application. The killing of the much bandied-about pipeline was hardly done in the heat of the moment, but calculated […]
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 […]
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. […]
Allocation Revisited
A few months ago I wrote on the Texas Railroad Commission’s issuance of permits for “Allocation Wells.” Specifically, I noted that EOG Resources, Inc., in 2012, applied for a permit to drill an Allocation Well that crossed leases in which it did not have the right to pool. The mineral owners protested the issuance of […]
Getting Technical
The devil is in the details, where some deals are concerned. Recently, a Petition for Review was filed in the Texas Supreme Court centering on an assignment terminating due to non-payment of overriding royalty interests. Specifically, the Court of Appeals for the Sixth Appellate District of Texas, Texarkana, looked at the issue of “strict compliance” […]
From the General Counsel: The “Wash-Out” Debate
Lessees who pay overriding royalty interests are obliged to continue honoring those ORIs with every lease renewal or extension, without exception. Or are they? That’s now a question for the state’s Supreme Court. Do pesky overrides give you issues? The Supreme Court may soon provide a solution to that particular problem. The high Court has […]