On Friday, March 31, 2023, Representative Larry Bagley of Louisiana’s District 7 proposed amendments to Louisiana Revised Statutes § 30:10. The bill, HB 590,  extends a prior substantive change in the law that was affected by the 2012 amendments to La. R.S. 30:10. In the 2012 amendment, operators of force-pooled drilling units were required

In a unique twist on a common challenge to the deductibility of post-production expenses, plaintiffs in Grayson L.L.C. (Of Louisiana), et al. v. BPX Operating Co., et al. sued the unit operator for breach of contract to recover transportation costs incurred as a result of alleged regulatory violations of the Federal Energy Regulatory Commission’s (“FERC”)

Last week, the U.S. Department of the Interior released its proposed Outer Continental Shelf (OCS) five-year program for offshore oil and gas leasing. The Outer Continental Shelf Lands Act (OCSLA) requires the Secretary of the Department of the Interior to “prepare and periodically revise and maintain an oil and gas leasing program” (i.e., a five-year

In response to various pressures on the energy industry to reduce the environmental impact associated with excess carbon dioxide emissions, many energy companies are investigating carbon capture and sequestration projects as a means of reducing their carbon emissions. In addition to reducing carbon emissions, carbon capture and sequestration projects often qualify for valuable income tax

In Mary v. QEP Energy Company, the U.S. Fifth Circuit held that a landowner is not entitled to a pipeline company’s profits as a consequence of a portion of a pipeline being located partially outside of a servitude. The Fifth Circuit concluded that a landowner can only recover the additional profits earned by defendant

On June 29, 2021, the United States Supreme Court, in a 5-4 vote, held that a natural gas company’s right to condemn property for a pipeline under the Natural Gas Act includes the right to condemn state-owned property. In PennEast Pipeline Co. v. New Jersey,[1] the divided Court held that a certificate from the Federal Energy Regulatory Commission (FERC) entitled PennEast Pipeline Company (PennEast) to use the federal government’s power of eminent domain to seize property owned by the State of New Jersey.
Continue Reading United States Supreme Court Blocks New Jersey’s Sovereign Immunity Challenge to FERC Certificate Holder’s Condemnation of State-Owned Land

Perhaps the most important right granted in a solar development agreement is the right of the solar developer to use the surface of the property to evaluate, construct, and operate the solar farm.  But how can the solar developer ensure that its right to use the surface of the property is not encumbered by or inferior to the rights of others?  Or, more specifically, how can the solar developer ensure that a mineral estate owner will not be able to locate a well in the middle of its solar farm?  This issue is at the forefront of the minds of the renewables industry and was the subject of a recent Texas Court of Appeals decision.  As renewable energy projects continue to multiply, clashes between solar developers and mineral interest owners will increase as well.
Continue Reading Solar Leasing in Louisiana: The Accommodation Doctrine

Bringing to mind the infamous Hatfield-McCoy family feud, Concho Resources, Inc. v. Ellison is a classic boundary dispute between a leasehold owner and neighboring lessees with allegations of fraud and more than $1 million at stake.  See 2021 WL 1432222 (Tex. Apr. 16, 2021).  The plaintiff, Martha Ellison d/b/a Ellison Lease Operating, alleged that the defendant lessees, Samson Resources Company (“Samson”), COG Operating LLC (“Concho”), drilled and operated a well on her leasehold.  The defendants—relying on a boundary stipulation and a written acceptance of such stipulation signed by Jamie Ellison, Mrs. Ellison’s deceased husband—claimed that Mr. Ellison ratified the agreed boundary line before his passing, foreclosing any claims of trespass.  What ensued was a long legal battle with an ironic outcome.  The defendants won in the trial court; the court of appeals reversed.  The tables turned again at the Texas Supreme Court, which ultimately held that the boundary stipulation was valid and that the defendants conclusively established their ratification defense, but the case is still ongoing.
Continue Reading Texas Supreme Court Update: Boundary Dispute Between Leasehold Owner and Lessees of Adjacent Tract

On April 5, 2021, the Financial Crimes Enforcement Network (“FinCEN”) released its advance notice of proposed rulemaking (“ANPRM”) to solicit public comments on questions pertinent to its implementation of the Corporate Transparency Act’s (“CTA”) beneficial owner reporting requirements. As discussed in a previous Energy Law Blog post, the CTA was adopted as part of the 2021 National Defense Authorization Act and requires that certain business entities disclose to FinCEN the identities of their beneficial owners and applicants. The information will then be stored in a secure, private database that may be accessed by, among others, law enforcement agencies for crime prevention and certain financial institutions for customer due diligence purposes. FinCEN has until January 1, 2022, to implement the regulations regarding reporting requirements, although FinCEN is also using this ANPRM to solicit comments on the implementation of the related database maintenance use and disclosure provisions. Final rules on customer due diligence requirements for financial institutions will be the subject of separate rulemaking and comment periods.

Continue Reading FinCEN Seeking Comments on New Beneficial Owner Reporting Requirements

In Mary v. QEP Energy Company, the Western District of Louisiana rejected, for the second time in this case, Plaintiffs’ claims seeking a disgorgement of QEP’s profits.  QEP was the lessee of a mineral lease covering Plaintiffs’ property, but because it wanted to transport off-site gas across their property, QEP also obtained a pipeline