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…
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…
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…
In 2022, in a case decided by the Corpus Christi Court of Appeals, the issue was who owns the right to use underground salt caverns: the mineral owner or the surface owner? In this case, Myers-Woodward, LLC v. Underground Services Markham, LLC and United Brine Pipeline Co., ___ S.W.3d ___,…
Whether a royalty granted or reserved in a deed is a “fixed” or “floating” royalty has resulted in a lot of litigation in Texas. The Corpus Christi Court of Appeals considered the issue again in Hahn v. ConocoPhillips Co., ___ S.W.3d ___, 2022 WL 17351596 (Tex.Civ.App.—Corpus Christi 2022, pet. granted).…
In a recent case, the Texas Supreme Court considered whether interest on late royalty payments was supposed to be simple or compound interest. In Samson Exploration, LLC v. Bordages, 662 S.W.3d 501, 2024 (Tex. June 7, 2024), the Plaintiff’s oil and gas leases had a late charge provision that provided…
Lithium mining is apparently becoming the next boom activity in Northeast Texas, particularly in Cass, Franklin, Morris and Titus Counties. There are a few things to know about lithium leasing. First, be aware that Northeast Texas is becoming Ground Zero for lithium production. It is estimated that the lithium contained…
The Texas Supreme Court recently considered oil and gas leases that involved the interaction of the “free use of gas” clause and the royalty due on gas used off the leased premises. In Carl v. Hilcorp Energy Co., ___ S.W.3d ___, 2024 WL ___ (Tex. May 17, 2024), individuals brought…
The Texas Supreme Court is going to hear a case in which the issue is whether the interest to be paid on past due royalties is simple or compound interest. In the case of Samson Exploration, LLC v. Bordages, 662 S.W.3d 501 (Tex. Civ. App.—Beaumont 2022, pet. granted September 1,…
The El Paso Court of Appeals, in the recent case of Cactus Water Services LLC v. COG Operating LLC, was faced with the issue of who owns the water produced by a hydraulic fracturing operation: the oil and gas company operating the well or the surface owner and the company the…