The takeaway from DDR Weinert, Limited et al v. Ovintiv USA Inc. is that equitable recoupment rescued a royalty payor from its mistaken payment of royalties. But first,
The events.
The Richters were mineral lessors in land in Karnes
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Two Words = Six Million Dollars: SCOTX Reverses Trial Court That Added Words to a Gas Transportation Agreement
Co-author Gunner West
In American Midstream (Alabama Intrastate), LLC v. Rainbow Energy Marketing Corporation, the Texas Supreme Court held that the trial court improperly inserted the words “scheduled” and “physical” into a contract. By blue‐penciling these terms, the trial…
Texas Supreme Court Decides Who Must Produce to Maintain an Oil and Gas Lease
In Cromwell v. Anadarko E & P Onshore LLC the Supreme Court of Texas did what it so often does: In order to provide “legal certainty and predictability”, the Court considered the plain language of a contract in order to…
Operator Excused from Texas Relinquishment Act Claims
Co-author Gunner West
In Williams O & G Resources, LLC v. Diamondback Energy, Inc., a federal magistrate judge concluded that the Texas Relinquishment Act does not apply to public-school lands patented after 1931. The report and recommendation was adopted…
Texas Pore Space Ownership – Royalty Calculation
In Myers-Woodward, LLC v. Underground Services Markham, LLC et al, (discussed previously) the parties disagreed on how to calculate Myers’ royalty on salt produced by Underground.
The facts
The 1947 mineral deed reserved to Myers “a perpetual one…
Who Owns the Subsurface Pore Space in Texas?
In a word, the surface estate owner. If that’s all the learning you are up for today, proceed directly to the musical interludes. If you want to know why the Supreme Court of Texas had to say this again, read…
Bad Guys in Energy Paid the Piper in 2024
As in every year, in 2024 the grinches of law enforcement brought financial and corporal misery to bad guys in energy. Here is a review of the crimes of only a few of the convicted, admitted and alleged bribsters, swindlers…
Uri Force Majeure Cases Still Percolating
Thought you’d heard the last of force majuere cases arising from Winter Storm Uri? Think again.
In Marathon Oil Company v. Koch Services LLC. the question was how to measure damages suffered by Koch for Marathon’s failure to deliver gas.…
Bankruptcy Court Blocks GLO’s State Lease Termination
Co-author Gunner West
In In re Pearl Resources LLC, a Houston bankruptcy court rejected the Texas General Land Office’s attempt to partially terminate state oil and gas leases in Pecos County, despite finding the operator had breached offset well…
Geophysicist’s Claims Turn on Definitions
Sewak v. Sutherland Energy Co. Ltd. is of interest for how the court defined terms commonly used in consulting contracts in the oil and gas industry, and how difficult it is to foresee all contingencies when negotiating a contract for…