Archives: Oil & Gas

Subscribe to Oil & Gas RSS Feed

Federal Judge Grants Preliminary Injunction Halting the Biden Administration’s “Pause” on New Oil and Gas Lease Sales

On Tuesday, U.S. District Judge Terry A. Doughty of the Western District of Louisiana granted Plaintiff States’ request for an injunction to block the Biden Administration’s pause on new federal oil and gas lease sales (“Lease Pause”).  Louisiana v. Biden, Jr., Case No. 2:21-cv-00778-TAD-KK, 2021 WL 2154963 (W.D. La. June 15, 2021).… Continue Reading

United States Supreme Court Issues First Decision in Climate Litigation

Updated from May 18, 2021 post. On May 17, 2021, the United States Supreme Court issued a decision in the climate change litigation affecting the fossil fuel industry. In a 7-1 decision (Justice Alito recused), the Court held that an appellate court must consider all grounds for removal when an appeal is taken pursuant to … Continue Reading

Texas Supreme Court Update: Boundary Dispute Between Leasehold Owner and Lessees of Adjacent Tract

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 … Continue Reading

Texas Supreme Court Update: TRO-X Lives to Fight Another Day in Contractual Dispute over Share of Income on Production from Equitable Interests

The Texas Supreme Court recently released its anticipated opinion in Eagle Oil & Gas Co. v. TRO-X, L.P., 18-0983, 2021 WL 1045723, at *1 (Tex. Mar. 19, 2021) (“Eagle II”).  The Eagle II case is the second case that arose between TRO-X, L.P. (“TRO-X”) and Eagle Oil & Gas Co. (“Eagle”) regarding their agreement to … Continue Reading

President Biden Faces Constitutional Challenges to Revocation of Keystone XL Permit

During his first  hours in the Oval Office, President Biden issued Executive Order 13990, entitled “Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis.” Section 6 of the Order revoked TransCanada Keystone Pipeline, L.P.’s March 2019 permit to construct and operate cross-border pipeline facilities at the U.S.-Canada border in Montana. This … Continue Reading

Texas Supreme Court Update: The Court Decides Issue of First Impression Related to the Scope of an Oil and Gas Lease’s Free-Use Clause and Further Interprets Conflicting Royalty Clause Provisions

The Texas Supreme Court recently issued its anticipated decision in BlueStone Natural Resources II, LLC v. Randle, affirming in part and reversing in part the lower court’s ruling.  No. 19-0459, 2021 WL 936175 (Tex. Mar. 12, 2021).  The Court (1) affirmed that the lower court correctly concluded the oil and gas lease at issue explicitly … Continue Reading

Western District Rejects Disgorgement of Profits Claim for Pipeline Trespass

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 servitude … Continue Reading

Future Outlook for Subsurface Trespass Claims Against Third Party Purchasers of Minerals

A recent decision from the Louisiana First Circuit Court of Appeal may have lasting effects on good faith purchasers of oil. In Hill v. TMR Exploration, Inc, 2021 WL 267916, the First Circuit affirmed a district court ruling on summary judgment applying the good faith purchaser defense provision set forth in La. Civ. Code arts. … Continue Reading

Louisiana Climate Initiatives Interim Report Highlights Goals for Developing Actions to Reduce Greenhouse Gas Emissions

Governor Edwards’ Climate Initiatives Task Force published the Louisiana Climate Initiatives Interim Report earlier this month, which outlines the process by which the Task Force plans to develop climate actions to reduce greenhouse gas emissions in Louisiana.… Continue Reading

Second Circuit Upholds Independent Contractor Status for E & P Company

The issue of whether a company is an independent contractor of an E & P company is frequently litigated in oilfield injury accidents, as the injured worker searches for multiple sources of possible recovery.  In McDaniel v R.J.’s Transportation, LLC,  —- So.3d —, 2021 WL115917, the Second Circuit affirmed summary judgment in favor of Comstock … Continue Reading

The Meaning of “And” Determines Outcome of Oil and Gas Feud

In Tier 1 Resources Partners et al. v. Delaware Basin Resources LLC, 08-20-00060-CV, the Court of Appeals for the Eighth District of Texas (El Paso) recently held oral argument on the proper construction of the word “and” used in a Delaware Basin oil and gas lease.  The meaning of the word is hotly contested, the … Continue Reading

Carbon Capture and Sequestration in 2021: The Path Forward

2021 is already poised to offer substantial growth in the area of carbon capture and sequestration (“CCS”). On January 21, Elon Musk announced on Twitter that he will donate $100 million to the “best” carbon capture technology, chosen through a competition whose details and judging criteria are yet to be announced. Further, on February 1, … Continue Reading

Is the Frequency of Louisiana Environmental Quality Act Citizen Suit Litigation Increasing?

In 2003, the Louisiana Supreme Court rendered its landmark decision in Corbello, et al. v. Iowa Production, et al.  Since then, Louisiana courts have seen a steady stream of “legacy litigation” claims being filed.  Legacy litigation claims generally concern alleged contamination arising from historic oil and gas operations under theories of both breach of contract … Continue Reading

Survey of Proposed Legislation Across the States Affecting the Energy Industry in 2021

Several pieces of energy-industry legislation are teed up for debate as state legislatures reconvene for their first sessions of 2021. With topics ranging from offshore oil and gas moratoriums to restrictions on natural gas flaring and venting, the following is an overview of notable energy legislation to be heard in state legislatures this year.… Continue Reading

U.S. DEPARTMENT OF INTERIOR ISSUES 60-DAY MORATORIUM ON FEDERAL LEASING AND DRILLING PERMITS

Following through with President Biden’s campaign promise to halt oil and gas drilling on federal lands, on January 20, 2021, the Acting Secretary of the U.S. Department of Interior (“Interior”) issued an order, effective immediately, mandating a 60-day moratorium on new oil and gas leases and drilling permits on public lands and waters (“Order”).… Continue Reading

It’s Heating Up: United States Supreme Court Hears Arguments on Proper Jurisdiction for Climate-Change Lawsuit

Yesterday, the United States Supreme Court heard oral arguments in the climate change lawsuit filed by the City of Baltimore in 2018 against energy companies. This case is one of a number of cases brought by states, cities, and other municipalities against energy companies alleging that the companies contributed to climate change. By granting certiorari … Continue Reading

Louisiana Third Circuit Confirms Settled Application of Subsequent Purchaser Doctrine Where Expired Mineral Leases at Issue

As it “is impossible to transfer rights to an assignee under an expired mineral lease,” in a case where oil, gas and mineral leases had expired prior to plaintiff’s acquisition of the property, the Louisiana Third Circuit Court of Appeal in Litel Explorations, L.L.C. v. Aegis Development Company, L.L.C., et al. affirmed dismissal of claims … Continue Reading

Fifth Circuit Identifies Potential Conflict with Supreme Court on Jones Act Seaman Test

In Sanchez v. Smart Fabricators of Texas, LLC, 970 F.3d 550,  a three-judge panel of the United States Fifth Circuit Court of Appeal held on August 14, 2020, that seaman status under the Jones Act may apply to an injured welder on a jack-up oil rig adjacent to an inland pier. Maintaining that the plaintiff … Continue Reading

Drilling for our Future: Technological Advances Leading the Industry

Several major oil and gas producers around the world are working with the Rocky Mountain Institute to develop a digital platform to assist in tracking and reducing emissions. Shell, ExxonMobil and Chevron are among the industry leaders piloting this new digital platform, which will enable emissions data to be obtained from a number of different … Continue Reading

Louisiana Third Circuit Affirms Dismissal of Royalty and Other Claims Based Upon Prescription

In a straightforward application of Louisiana’s prescriptive principles, the Louisiana Court of Appeal for the Third Circuit affirmed the trial court’s grant of exceptions of prescription, finding plaintiff’s claims for fraud, under the Louisiana Unfair Trade Practices Act (LUTPA), and for unpaid royalties all prescribed in Karen May v. The Succession of Mayo Romero. … Continue Reading

Presidential Election 2020: Considerations for the Oil & Gas Industry

In the midst of a chaotic year and a tense campaign season, issues such as COVID-19, race relations, and healthcare seem to be at the forefront of Americans’ minds as they head to the polls on November 3.  But the oil and gas industry stands to be impacted regardless of the election outcome in November, … Continue Reading

Louisiana Supreme Court Grants UNOCAL’s Writ Application from Third Circuit Decision Involving Prescription and Breach of Contract in Act 312 Case

On October 6, 2020, the Louisiana Supreme Court granted a writ application filed by UNOCAL in State of Louisiana, et al. v. Louisiana Land & Exploration Co., et al. This application sought review of the Louisiana Third Circuit’s decision that affirmed the Vermilion Parish School Board’s authority to sue on behalf of the state, rejected … Continue Reading

Department of Interior Proposes New Financial Assurance and Decommissioning Regulations

The Bureau of Ocean Energy Management (“BOEM”) and the Bureau of Safety and Environmental Enforcement (“BSEE”) recently issued a proposed rule on Risk Management, Financial Assurance and Loss Prevention (“Proposed Rule”), which was published in the Federal Register on October 16, 2020 and is now open for public comment. The Proposed Rule is the result … Continue Reading

The Future of Carbon Capture and Sequestration

By ratifying the 2015 Paris Agreement,[1] nations across the world made a commitment to reducing greenhouse gas emissions by at least 40% by the year 2030.  Carbon dioxide is one of the primary greenhouse gases found in the Earth’s atmosphere, accounting for 76% of global greenhouse gas emissions according to published reports. Any effort to … Continue Reading
LexBlog