In Self v. BPX Operating, a case with significant implications for Louisiana operators and royalty owners, the Supreme Court of Louisiana ruled that the doctrine of negotiorum gestio in La. Civil Code art. 2292 does not allow the operator of a drilling unit created by Louisiana’s conversation laws to withhold post-production expenses (PPCs) from
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How Much “Climate Justice” Do We Need … How Much Can We Stand?
How will you and I become extinct? The UN assures us that the weather will be unpleasant whenever it happens. The IPCC has predicted that global “warming”, “heating”, “baking” “broiling” and other Game of Thrones-worthy agony would be the end of humanity. The latest: The earth will be boiling!
Except what if it’s not true,…
Suit to Terminate Texas Oil and Gas Lease Fails for Lack of Evidence
The real takeaway from Pruett v. River Land Holdings LLC is the reminder that the Texas Railroad Commission cannot adjudicate questions of title.
The facts
In 2001 Pruett acquired 323 acres and his mother acquired 194 acres of an original 550-acre tract in Milam County, Texas, which was burdened by an oil and gas lease.…
No Compound Interest on Unpaid Royalties Under Texas Oil and Gas Lease
It’s not exactly Deuteronomy 23:19, but the Supreme Court of Texas has an opinion about interest. They don’t like it if it’s compounded. Samson Exploration LLC v. Bordages addressed interest to be charged on unpaid royalties under an oil and gas lease.
The takeaway
Compound interest is disfavored in Texas law. An agreement for interest…
How Courts Look at Fixed or Floating Royalty Disputes
Montgomery Trustee v. ES3 Minerals and Echo Minerals is another Texas fixed or floating royalty case. Before diving into the details, perhaps it’s best to describe the pattern the courts seem to fall into to resolve these disputes. These are general rules of construction one sees time after time in these cases:
- To the extent
…
Texas Common Carrier Status Confirmed
Litigation practice tip before we dive into Right-Way Sand Co. v. South Texas Pipelines LLC (STX). Waiting 27 months after being sued and after the offending activity has occurred before asking for an injunction to “protect the status quo” is probably a loser.
STX sued landowners Right-Way and others to exercise the power of eminent…
Sole Discretion Not to Close Renders Texas Oil Deal Unenforceable
Maverick Natural Resources, LLC at al v. Glenn D. Cooper Oil & Gas, Inc. is for control freaks wherever you are … and for those of you who advise the aforesaid control freaks.
Cooper sent Maverick a letter offering to purchase oil and gas wells and leases in Crane County for $950,000, to which…
Federal Court Enjoins Ban on LNG Export Permitting
In Louisiana et al v. Biden et al a federal district court granted relief to 16 states by enjoining the DOE’s pause in considering LNG export permits. The relief is not permanent. It means that the plaintiff-states have a likelihood of success on the merits.
The “Export Ban”
As you know, in January President…
U. S. Supreme Court Diminishes the Administrative State
The U. S. Supreme Court struck down the “Chevron doctrine” that has plagued the citizenry of our great country since 1984. In Loper Bright Enterprises et al v. Raimondo, the Court ruled that the Administrative Procedure Act requires courts to exercise their independent judgment in deciding whether an agency has acted within its statutory…
Texas AG Issues Opinion on Landmen and Wind Power Leasing
It would be a heavy burden to catalogue all of the wrongs one might attribute to our Texas Attorney General. Now, we have another one. Opinion KP-0467, responding to a request from the Texas Real Estate Commission, concluded that a person who negotiates a lease of property for the development of a wind power project on…