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Industry Custom Does Not Supersede Contract Language

By Charles Sartain on July 16, 2019

Co-author Chance Decker In Barrow-Shaver Resources Company v. Carrizo Oil & Gas, Inc the Supreme Court of Texas has held again, here in a consent-to-assign dispute, that a contract means what the words say, even if in negotiations a landman said something he didn’t mean, … or changed his mind later, and even if “industry custom” is to the contrary.…

Energy & the Law

Smart Pig Technology … and the Texas Merger Doctrine

By Charles Sartain on July 8, 2019

Today is a two-fer. The questions: When does the “merger doctrine” not work in Texas, and how do courts treat technological developments created after a contract becomes effective? In Murphy Land Group LLC v. Atmos Energy Corporation, Atmos constructed and operated pipelines under three easements from the ‘50’s and ‘60’s and the parties had a 2012 Roadway Lease granting Atmos a 40 foot roadway lease, which expired under his own terms in 2015. The merger doctrine…

Energy & the Law

The TCPA Revisions Are Good for (Not Only) the Oil Business

By Charles Sartain on June 28, 2019

Co-author Niloufar Hafizi As mentioned last week, the 86th Legislature amended the Texas Citizens Participation Act, Texas’ Anti-SLAPP law and defendants’ go-to weapon of destruction in a diverse range of cases. The TCPA was intended to prevent harassing lawsuits by plaintiffs seeking to quell constitutionally protected activity, in particular the exercise of free speech, the right to association, and the right to petition.but has been much-criticized for being overly broad and subject to abuse and misuse. The old…

Energy & the Law

Was the 86th Texas Legislature Good to the Oil Business?

By Charles Sartain on June 20, 2019

Co-author Nilofaur Hafizi The answer depends on what part of “the oil business” you care about. The 86th Legislature produced a few, but not many, changes in laws affecting the business, (most going into effect on September 1). Here are some that passed and some that failed: WINNERS…

Energy & the Law

What’s the Bidding on the Green New Deal?

By Charles Sartain on June 13, 2019

Just because anthropogenic climate change is a legitimate concern doesn’t mean that the most radical pronouncements from the idealogues aren’t fair game for criticism. Not an idealogue, Bjorn Lomborg, thinks we should worry about it … a little bit. That caution has earned him derision as a skeptic or worse, a denier merely because he believes the “threat” is overstated and the proposed cures are needless and far more expensive than the disease. Now for…

Energy & the Law

Lease Contamination Claim Squelched by Limitations

By Charles Sartain on June 4, 2019

In Swift Energy Operating LLC v. Regency Field Services LLC, claims for damage to leased minerals allegedly caused by contamination spreading from an H2S-CO2 injection well were barred by limitations. When the cause of action accrued was the essential question.…

Energy & the Law

Lessor, Should You Cash That Royalty Check?

By Charles Sartain on May 29, 2019

Did the lessor’s deposit of royalty checks for production from a pooled unit that she contends was improper ratify the improper pooling? In Strickhausen v. Petrohawk et al, a jury will have to sort out the answer. Her case will be aided by exculpatory language in her oil and gas lease and her complaints from the beginning that her lease was improperly pooled. The “Future Documents” clause and other facts Strickhausen’s lease on 50 percent…

Energy & the Law

Operator: How Would You Like to Pay Twice For That Pipe Delivery?

By Charles Sartain on May 22, 2019

Co-author Alexis Foster Thanks to the power of the trucking lobby, the prevailing policy on the question of who wins and who loses if a carrier of goods goes unpaid favors the carrier over the broker, shipper, consignor and consignee. The rationale is that allowing shippers the benefit of carriage of goods without compensating the carrier would eventually cripple the shipping industry and the economy. Thus, the carrier will be paid, irrespective of the carrier’s failure…

Energy & the Law

The Difficulty of Enforcing an Unwritten Contract

By Charles Sartain on May 14, 2019

Imagine how much better off you would be if the contract you want to enforce had been reduced to writing. See West v. Quintanilla for what happens when it wasn’t. The agreements…

Energy & the Law

Oil Field Technology … and a Texas Bill Aimed at Royalty Owners

By Charles Sartain on May 2, 2019

Welcome to today’s grab-bag of unrelated topics. The climate avengers are clever in the way they demonize the industry. They give zero credit for technological advancement. Truth is, the industry’s use of technology is constantly evolving, resulting in improved performance and, not secondarily, lessened environmental impact from operations. One example: Scientists from The Ohio State University are working on a project to convert fossil fuels and biomass into useful products, including electricity, without emitting carbon dioxide into the atmosphere. The papers were published in…

Energy & the Law

Blog Authors

Industry Custom Does Not Supersede Contract Language

Smart Pig Technology … and the Texas Merger Doctrine

The TCPA Revisions Are Good for (Not Only) the Oil Business

Was the 86th Texas Legislature Good to the Oil Business?

What’s the Bidding on the Green New Deal?

Lease Contamination Claim Squelched by Limitations

Lessor, Should You Cash That Royalty Check?

Operator: How Would You Like to Pay Twice For That Pipe Delivery?

The Difficulty of Enforcing an Unwritten Contract

Oil Field Technology … and a Texas Bill Aimed at Royalty Owners

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