Category Archives: Oil and Gas Law

Eastland Court of Appeals Rules Oil Company Not Liable for Dead Cows

Posted on by

When over 100 cattle died after exposure from oil and saltwater from oil and gas operations, their owner sued the oil company.  The Eastland Court of Appeals affirmed a take nothing judgment and dismissal in Foote v. Texcel Exploration, Inc. Background Mr. Foote leased property in Knox County, Texas on which he grazed 650 head of cows.  He hired Mr. Cypert to care for the cattle on the lease. Foote traveled to Knox County, met with Cypert, and went to look at Cypert’s facilities and operations.  Foote did not… Read More →

August 13, 2021 Weekly Round Up

Posted on by

It is time for another recap of some of the key agricultural law stories in the news over the past couple of weeks. * Court orders Maui County to obtain NPDES permit for injection wells on remand.  You all likely remember the US Supreme Court decision in County of Maui v. Hawaii Wildlife Fund, in which the US Supreme Court held that NPDES permits are required for both direct discharges into waters of the United States and for indirect discharges that are the functional equivalent of a direct… Read More →

Texas Supreme Court Addresses Postproduction Costs

Posted on by

A recent Texas Supreme Court case, BlueStone Natural Resources II, LLC v. Randle, addressed a dispute over postproduction cost allocation for royalties.  I thought this Opinion offered a good explanation of postproduction costs generally, and comparison of the two clauses at issue in the leases, which made it worth taking a look at on this blog.  [Read Opinion here.] Background In 2003, several mineral owners (“lessors”) executed oil and gas leases with Quicksilver Resources.  Each of the leases contain a 2-page Printed Lease and an attached Addendum.  The… Read More →

Case Addresses Mineral Reservation Language Dispute

Posted on by

The Austin Court of Appeals recently addressed the issue of mineral reservation in a deed in Ross v. Flower, offering important reminders for Texas landowners and property purchasers. Background This case revolves around the interpretation of a paragraph in a deed for 20-acres of land in Fayette County. In 1999, the Rosses owned the surface and mineral interests for the 20-acre tract at issue.  In April 1999, the Rosses executed a General Warranty Deed conveying the property to Richard & Patricia Church.  Specifically, the Deed stated that the… Read More →

Case Addresses Solar Lease, Mineral Owner, and the Accommodation Doctrine

Posted on by

The El Paso Court of Appeals addressed an interesting and important issue recently in Lyle v. Midway Solar.  How does Texas law apply when there is a potential conflict between the operation of a large scale solar facility and the ability of the mineral owner to extract oil or gas? Background This dispute involves a 315-acre tract of land in Pecos County. The Lyles own 27.5% of the mineral rights to this land by virtue of a 1948 deed.  There is no current mineral lease on the property, and the… Read More →

MT Supreme Court: Dinosaur Fossils Are Not Minerals

Posted on by

In an update to a story I included in the Weekly Round Up last Friday, the Montana Supreme Court has ruled on the question of whether dinosaur fossils are minerals under state law.  [Read Opinion here.] Background The case involves farm and ranch land in Montana.  The land was initially owned by the Seversons and for approximately 15 years, it was run as a partnership between the Seversons and the Murrays, who worked there as ranchers. In 2005, the Seversons severed the surface estate from the mineral estate. … Read More →

TX Supreme Court Addresses Duty of Executive Rights Holder

Posted on by

The Texas Supreme Court recently issued an opinion addressing the duty owed by an executive right holder to non-participating mineral owners.  This is an important issue for both mineral owners and executive right holders to understand and be aware of when considering lease offers. Factual Background Dora Jo Carter owned 1,082 acres in Frio County.  She and her two children also, collectively, owned 50% of the mineral estate. The other 50% mineral interest was owned by the Hindeses. In 2002,  Mrs. Carter sold the surface estate to Texas… Read More →

March 22, 2019 Weekly Round Up

Posted on by

We’ve reached the end of another week.  Happy Friday!  Welcome to those of you that are new readers and subscribers to the Texas Agriculture Law Blog. A quick reminder about our upcoming Ranchers Leasing Workshop events in Nacogdoches, Burnet, and Perryton.  These are great programs for anyone involved in an agricultural lease–grazing, haying, farming, hunting, livestock–as either a tenant or a landowner.  Registration is easy and can be done by clicking here or by calling Valerie at (979)845-2604.  For more information and to see our complete list of… Read More →

Court Rules for Oil Operator in Accommodation Doctrine Case

Posted on by

Last summer, a case from the El Paso Court of Appeals, Harrison v. Rosetta Resources Operating, raised interesting arguments regarding water use and the accommodation doctrine. Background The Harrison Trust owns 320 acres in Reeves County.  Mr. Harrison is the trustee of the Harrison Trust.  The minerals beneath the land are owned by the State of Texas. In 2009, Harrison executed an oil and gas lease on behalf of the State with Eagle Oil & Gas, as is allowed by the Natural Resources Code on certain lands.  Eventually, the… Read More →

Texas Mineral Owner’s Implied Right to Use the Surface

Posted on by

*Portions of this blog post were excerpted from the handbook Petroleum Production on Agricultural Lands in Texas: Managing Risks and Opportunities, available here.* One of the most surprising pieces of Texas oil and gas law may be the dominant estate rule.  What does this rule mean and how does it impact surface and mineral owners in the state? Severance of the Mineral and Surface Estates In Texas, and most other states, the ownership of the mineral estate can be separated (severed) from the surface estate.  Put another way, one… Read More →