Archives: Texas

Subscribe to Texas RSS Feed

United States Fifth Circuit Confirms Remedies Available to Subrogated Insurer

On July 7, 2017, the United States Fifth Circuit Court of Appeal, in Associated International Insurance Company v. Scottsdale Insurance Company, held that, under Texas law, the subrogation clause of an insurance agreement allowed a subrogated insurer to seek reformation of a contract between its insured and a third party.  In that appeal, the defendant’s … Continue Reading

New Government Contractor “Blacklisting” Reporting Requirements Put on Hold

Hours before a controversial set of new reporting requirements for government contractors was set to take effect, a federal court in Texas enjoined implementation of the requirements across the country.… Continue Reading

Texas Supreme Court Agrees to Review Three Oil and Gas Cases in 2016

On September 2, 2016, the Texas Supreme Court agreed to review three oil and gas cases involving issues pertinent to the industry and land and mineral owners. BP America Production Company v. Red Deer Resources, LLC In BP America Production Company v. Red Deer Resources, LLC, the lessee of a top lease, Red Deer, sued … Continue Reading

Texas Supreme Court Rules Oil and Gas Producer Not Entitled to Sales Tax “Manufacturing Exemption”

On June 17, 2016, the Texas Supreme Court ruled that an oil and gas producer (“Southwest”) was not entitled to a statutory exemption from sales taxes on its purchases of casing, tubing and pumps used in the production of oil and gas (the “Equipment”). At issue in Southwest Royalties, Inc. v. Hegar was whether the … Continue Reading

Failure to Timely Pay Texas Ad Valorem Taxes: Reminders for Taxpayers and Secured Lenders

The extended downturn in the oilfield economy is showing up in some taxpayers’ inability to pay their Texas real property and personal property ad valorem taxes when those taxes become due.  This note reminds taxpayers what happens when the ad valorem taxes are not timely paid.  It also reminds lenders with security interests in real … Continue Reading

New Developments in the Determination of the Texas Franchise Tax Liability

The Texas Franchise Tax is imposed on taxable entities that do business in Texas or that are chartered or organized in the state.  Taxpayers subject to the Texas Franchise Tax may compute their tax liabilities under several alternative methods to determine which one results in the lowest amount of tax due. One such method is … Continue Reading

A Rose by Any Other Name: Texas Court of Appeals Says Nuisance “Symptoms of Discomfort” Require the Same Proof of Causation as “Disease”

In what may appropriately be called a “swing and a miss”, the Fourth Court of Appeals in San Antonio has rejected plaintiffs’ attempt to avoid the need for medical expert testimony in a toxic tort case by pleading damages for “symptoms of discomfort” instead of disease.  Cerny v. Marathon Oil Corp, et al., No. 04-14-00650-CV,  … Continue Reading

Texas Appeals Court Rules Assignee Retains All Acreage Covered by Assignment Under Retained-Acreage Clause

In yet another “retained-acreage” dispute, the Amarillo Court of Appeals recently ruled that an assignee was entitled to retain all acreage covered by the assignment of four leases, where the assignment’s retained-acreage clause invoked the maximum acreage prescribed by the applicable field rules governing proration units, and, in the absence of any such field rules, … Continue Reading

Texas Court of Appeals Rules on Permission Needed for Off-Lease Horizontal Drilling

The Fourth Court of Appeals recently held that surface owners control the matrix of the underlying earth; thus, a surface owner can give permission to drill through the subsurface to an adjacent lease. In Lightning Oil Co. v. Anadarko E&P Onshore, No. 04-14-00903-CV, 2014 Tex. App. Lexis 8673 (Aug. 19, 2015), Anadarko leased the mineral … Continue Reading

Texas Court Rules Lease’s Retained Acreage Clause Incorporates Drilling Unit Size of Statewide Density Rule 38, ConocoPhillips Must Release 15,351 Acres to Lessor

A Texas appeals court recently ruled in ConocoPhillips Company v. Vaquillas Unproven Minerals, Ltd. that a lease’s retained acreage clause invoked the Texas Railroad Commission’s field spacing rule as well as the statewide drilling unit rule, Rule 38, which operated to reduce the acreage the lessee was permitted to retain under the lease from 640 … Continue Reading

Texas Supreme Court Holds Producer Not Required to Share in Natural Gas Pipeline Compression Costs

In Kachina Pipeline Company, Inc. v. Lillis, No. 13-0596, the Supreme Court of Texas interpreted a natural gas-purchase contract and held that a producer was not required to share in the costs of compression, even though that compression helped yield a higher re-sale price. Whether this decision narrowly reflects the language of one specific contract … Continue Reading

Texas Supreme Court Says You Can’t Disclaim Your Heritage, But Maybe You Can Ignore It

Like the final season of ABC’s hit series Lost, the Texas Supreme Court’s opinion in Chesapeake Exploration, L.L.C. v. Hyder, No. 14-0302, was highly anticipated, but left many of us scratching our heads.  The 5-4 decision, authored by Justice Hecht, is the latest in a series of cases from high courts across the country addressing … Continue Reading

Supreme Court of Texas Clarifies How to Prove Lost Value

By Andrew Wooley On May 8, 2015, the Supreme Court of Texas held in Phillips v. Carlton Energy Group, LLC[1]/ that an expert witness’s pre-suit evaluations of a coal bed methane concession in Bulgaria and his and another expert’s opinion testimony at trial were too speculative to support a jury’s damage finding for tortious interference related … Continue Reading
LexBlog