Oil and Gas Operations

Odds are your newly acquired Texas oil and gas lease has a Pugh clause that reads something like: “this lease will be held to be limited to the strata or stratum from which the production of oil or gas is obtained.”   Not to worry, the well on the lease has been producing from that

The past few years have seen some very visible and well publicized protests of pipelines, like the Keystone XL and Dakota Access pipelines.  In one of these protests, demonstrators in North Dakota chained themselves to construction equipment and pitched tents along the pipeline route.  The intent of these actions was obvious—to physically disrupt and delay

Litigation over the costs for P&A operations seems never ending.  On July 16, 2019, in Apache Deepwater, LLC v. W&T Offshore, Inc., the Fifth Circuit affirmed a $43.2 million jury award to Apache Deepwater, LLC against W&T Offshore, Inc. for W&T’s unpaid share of the costs to plug and abandon three wells in the

On May 7, 2019, the Bureau of Safety and Environmental Enforcement (BSEE) issued a Notice to Lessees and Operators (NTL No. 2019-G01) regarding Suspensions of Production (SOPs) and Suspensions of Operations (SOOs).  This new NTL supersedes NTLs No. 2000-G17 and No. 2011-N10 and includes additional clarification on what lessees can and should do

Avanti Exploration, LLC v. Kimberly Robinson, Secretary, Louisiana Department of Revenue, (La 3rd Cir Court of Appeal)

The Louisiana Third Circuit Court of Appeal ruled that an oil producer, Avanti Exploration, LLC, properly remitted severance tax based on the full amounts of its gross receipts received from its first purchasers for crude oil sold

In January, the Louisiana Fifth Circuit Court of Appeal reinstated a permit issued by the Department of Natural Resources (DNR) back in April 3, 2017 to allow a new pipeline, reversing the district court that ordered the DNR to reevaluate the possible environmental effects.  Joseph v. Sec’y, La. Dep’t of Nat. Res., 18-414 (La.

Although Louisiana courts routinely decline to find oil and gas defendants strictly liable under the pre-1996 version of Louisiana Civil Code article 667, plaintiffs continue to plead a cause of action under article 667 for alleged property damage caused by oil and gas exploration and production.  Like many other landowners in legacy lawsuits, the plaintiffs

In Louisiana, the owner of a mineral servitude is under no obligation to exercise it.  However, a mineral servitude will prescribe from ten years of nonuse.  To interrupt the running of prescription, the owner of a mineral servitude may undertake “good faith operations for the discovery and production of minerals.”  Article 29 of the Mineral

The federal Fifth Circuit recently signaled its continued skepticism of permitting class certification for royalty owners.  In Seeligson v. Devon Energy Production Company, L.P., No. 17-10320, 2018 WL 5045671 (5th Cir. Oct. 16, 2018), a group of royalty owners in the Barnett Shale in Texas alleged that Devon Energy Production Company, L.P. breached its