Drill Deeper

Drill Deeper

News and Updates on Oil & Gas Legal Issues

Category Archives: Oil and Gas Operations

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Industry Expects US Shale Growth to Offset Global Production Problems

Posted in Energy Costs, News, Oil and Gas Operations, Oil Prices
As a sustained upward trend in U.S. shale growth continues, industry analysts predict it will offset the current production problems in the near future.  In recent months the energy market has been heavily influenced by a series of demand-side developments, and investors are continuing to monitor the escalating trade conflicts between the United States and… Continue Reading

Take Heed to Avoid Being Cast a Single Business Enterprise

Posted in Legal Updates, Louisiana Corporate Law, Oil and Gas Operations
The Louisiana Third Circuit’s recent decision in Duhon v. Petro “E,” LLC, 2018-57 (La.App. 3 Cir. 7/11/18), stands as a reminder to companies of the exposure to liability they may face under the single business enterprise (SBE) theory.  Reversing a summary judgment dismissal, the court ruled that the plaintiff, an aggrieved landowner, presented facts sufficient… Continue Reading

Louisiana Supreme Court Settles Two Important Questions Under the Mineral Code

Posted in Oil and Gas Operations, Oil and Gas Production
On June 27, 2018, the Louisiana Supreme Court resolved two important questions of Louisiana law over the scope of liability for breaches of mineral leases and over the maximum liability for unpaid royalties.  In Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., No. 2017-C-1518 (La. 6/27/18), the Louisiana Supreme Court held (1) that a mineral lessee’s… Continue Reading

United States Coast Guard Issues Marine Safety Alert and Strongly Recommends Inspection of Personal Flotation Devices

Posted in Louisiana Waterways, Maritime, Offshore, Oil and Gas Operations, Outer Continental Shelf, Uncategorized
On June 18, 2018, the United States Coast Guard (USCG) issued a Marine Safety Alert regarding their discovery of over 100 unwearable Type 1 Personal Floatation Devices (PFDs) during multiple inspections of different vessels. As pictured below, the PFD straps were fused to the side of the PFD.  Due to the fused strap, a user… Continue Reading

Personal or Predial Servitudes and Why It Matters

Posted in Oil and Gas Operations, Oil and Gas Production, Transactions
The new Austin Chalk play in central Louisiana is creating a resurgence of exploration activity in several rural areas.  Exploration companies have already begun leasing hundreds of thousands of acres in order to develop and produce minerals. A key component in developing the Austin Chalk is securing passage to the drill-sites.  Drill-sites are often located… Continue Reading

Another Possible Chip Away from the Finality of Confirmed Bankruptcy Plans

Posted in Bankruptcy, Oil and Gas Operations, Oil and Gas Production
A Texas court has recently carved out an exception to the Supreme Court’s ruling in United Student Aid Funds, In. v. Espinosa, 559 U.S. 260 (2010), on the finality of confirmed bankruptcy plans.  In Oklahoma State Treasurer v. Linn Operating, the United States District Court for the Southern District of Texas held Espinosa’s rule that… Continue Reading

Reverberations from Trump’s Steel Tariffs Likely to Reach the Oil and Gas Industry

Posted in Energy Costs, Oil and Gas Operations, Tariffs
President Trump’s proposed 25% steel tariffs will obviously affect industries beyond the domestic steel producers. One of those industries is the oil and gas industry. From first producers to pipeline companies to liquefied natural gas (LNG) transporters, steel is an essential material for the necessary infrastructure. At the recent CERAWeek energy conference in Houston, Senator… Continue Reading

Full Fifth Circuit Clarifies What Constitutes a Maritime Contract

Posted in Maritime, Oil and Gas Operations
This month, the Fifth Circuit en banc unanimously set aside prior precedent and adopted a “simpler, more straightforward test” for determining whether a contract relating to oil or gas activities on navigable waters constitutes a maritime activity.  In re Larry Doiron, Inc., No. 16-30217, 2018 WL 316862 (5th Cir. Jan. 8, 2018) (en banc).  This… Continue Reading