In the recent case of Cactus Water Services LLC v. COG Operating LLC, the Texas Supreme Court addressed the question of who owns produced water resulting from oil and gas production. Produced water, consisting of salt water mixed with oil, drilling fluids and fracking fluids, has long been considered to…
Texas Oil and Gas Attorney Blog
Whose Production Meets the Habendum Clause Requirements
In Cromwell v. Anadarko E&P Onshore, LLC (No. 23-0927 May 25, 2025), the Texas Supreme Court issued an opinion concerning the habendum clause in two oil and gas leases. An example of a typical habendum clause, that is required in some form in all oil and gas leases, is this:…
What Qualifies a Pipeline as a Common Carrier?
The Houston Court of Appeals decided a case recently on whether a pipeline was a common carrier or not. The issue is very important: if a pipeline is a common carrier it has condemnation power, and if it is not a common carrier it does not. In T.B. Farms, Ltd.…
Supreme Court Rules on Enforceability of Oral Representations
The Texas Supreme Court recently decided a case involving the enforceability of verbal representations. In the case of Roxo Energy Co. v. Baxsto, LLC, No. 23-0564, 2025 WL 134581 (Tex. May 9, 2025) (per curiam). Baxsto and Roxo engaged in discussions regarding Baxsto’s leasing its minerals to Roxo. Later these…
Recoupment of Overpaid Oil and Gas Royalties
The Fifth Circuit Court of Appeals decided an interesting case involving recoupment of overpaid oil and gas royalties. In DDR Weinert, Ltd. v. Ovintiv USA, Inc., No. 23-50479, 2025 WL 636315 (5th Cir. Feb. 27, 2025), a family named Richter owned four tracts in Karnes County, Texas. They sold those…
Surface Owner Owns Salt Caverns
The Texas Supreme Court recently granted petitions for review regarding the ownership of salt caverns created by salt extraction in Myers-Woodward, LLC v. Underground Servs. Markham, LLC, ___ S.W.3d ___, 2025 WL ___ (Tex. May 16, 2025). In this case, the lessee, Underground Services (“USM”) owned the mineral estate, and…
Early Shut In Royalty Payment Held to be Valid to Extend Lease
In Scout Energy Management, LLC v. Taylor Properties, 704 S.W.3d 544 (2024), the Texas Supreme Court addressed a case where the Plaintiff claimed that two leases had terminated because a shut in royalty payment was made late. The leases in question had a pretty standard shut in royalty clause that…
Texas Appeals Court Refuses to Add Width to Pipeline Easement
In Premcor Pipeline Co. v. Wingate, No. 09-22-00117-CV (Tex. Civ. App. Apr. 11, 2024), the Court considered a dispute regarding Premcor’s use of Wingate’s roads and bridges to service its pipelines. Wingate filed suit for injunctive relief and for a declaratory judgment to limit Premcor’s access to a fixed width…
Who Owns Produced Water in Texas?
A somewhat unsettled question in Texas law is just who owns the water that is produced in some wells along with the oil and gas. Produced water has usually been considered a waste product, and the operator/lessee had to pay to have it hauled away. However, some operators are selling…
More Issues with Electric Vehicle Batteries
I recently caught up with my stack of reading material, and one article that I found especially interesting is an article by Dr.Iddo Wernick entitled “The Many Problems with Batteries”. It is an analysis well worth your time. Dr. Wernick is a senior research associate at The Rockefeller University’s Program…