Jana Grauberger

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On June 17, 2024, the States of Texas, Louisiana and Mississippi, and four oil and gas trade associations sued the Department of Interior (“DOI”) and its Bureau of Ocean Energy Management (“BOEM”) in the U.S. District Court for the Western District of Louisiana, State of Louisiana, et al. v. Haaland, et al., No. 2:2024-cv-00820, challenging BOEM’s new final rule entitled Risk Management and Financial Assurance for OCS Lease and Grant Obligations, 89 Fed. Reg. 31544 (Apr. 24, 2024) (the “Final Rule”).
Continue Reading Texas, Louisiana, and Mississippi Band Together to Stop BOEM’s New $6.9B Financial Assurance Rule

On May 17, 2024, the Texas Supreme Court held that when a lease requires royalties to be paid on all gas sold or used off the premises, but the valuation point for said royalties is “at the well,” gas used off premises as fuel is deductible as a matter of law. …
Continue Reading Texas Supreme Court Determines That Off-Lease Fuel is Deductible from Royalties Valued at the Well

On April 15, 2024, the Bureau of Ocean Energy Management (“BOEM”) released a prepublication of its highly anticipated final rule revising financial assurance requirements for oil, gas, and sulfur operations on the federal outer continental shelf (“OCS”). …
Continue Reading BOEM’s New Financial Assurance Requirements for Federal Oil & Gas Leases, ROWs, and RUEs

The United States Court of Appeals for the Fifth Circuit recently certified a question to the Texas Supreme Court asking what effect a free-use clause and an off-lease clause have on a royalty clause valuing royalties at the well. At issue was whether gas used as fuel off the leased premises could be deducted from royalties when the royalties were to be valued at the well under an oil and gas lease containing an off-lease clause and a free-use clause. Texas Supreme Court precedent provides that when a lease states that royalties must be valued on the gross proceeds received by lessees, free-use clauses do not allow for gas used as fuel off the leased premises to be deducted, but it is not clear on whether that same rationale would apply when royalties are valued at the well. Given that uncertainty, the Fifth Circuit could not confidently make an Erie guess on the issue and instead opted to certify the question to the Texas Supreme Court.
Continue Reading At the Well vs. Off the Lease: The Fifth Circuit Asks the Texas Supreme Court to Determine Whether Off-Lease Fuel May be Deducted from Royalties Valued at the Well

On February 9, 2024, the Department of the Interior (DOI) published its semi-annual regulatory agenda, which includes two new planned rulemakings affecting federal offshore leases. …
Continue Reading DOI Regulatory Agenda Includes BSEE Rulemakings on Decommissioning and Bonding for Civil Penalty Appeals

The 2nd Annual Tulane Offshore Wind Conference capped off Louisiana Offshore Wind Week on Friday, January 19th. The conference included panels of offshore wind energy professionals discussing topics including leasing, permitting, financing, and the supply chain for US offshore wind energy.
Continue Reading Tulane Offshore Wind Conference Highlights Next Steps in GOM Offshore Wind Development

A federal appeals court has affirmed that a “greenwashing” lawsuit by the District of Columbia against several major energy companies should not be heard in federal court. In doing so, the court found itself “in accord with the other courts of appeals, which have unanimously found there is no federal jurisdiction where state or local governments have brought state-law actions against energy companies for conduct relating to climate change.” District of Columbia v. Exxon Mobil Corporation, et al., No. 22-7163 (Dec. 19, 2023) (“D.C. v. Exxon”).
Continue Reading Climate-Related Lawsuits Continue to Return to State Courts: Understanding The Latest Ruling from District of Columbia v. Exxon Mobil Corporation

BOEM’s GOM wind lease sale earlier this week resulted in just 1 high bid of $5.6 million. A drop in the bucket compared to last year’s California wind lease sale which received five winning bids ranging from $130-$173.8 million and totaling $757.1 million. Now what? Find out here on Liskow’s Energy Law Blog.
Continue Reading First-Ever Gulf of Mexico Wind Auction Results in Only 1 Wind Lease Offshore Louisiana. What Happens Next?

Recent technology has made produced water—a byproduct of fracing that was traditionally considered waste—a valuable product. However, no legal guidance existed on whether produced water was owned by mineral owners or surface owners. The Texas Legislature resolved some of that uncertainty by passing Texas Natural Resources Code § 122.002 on September 1, 2019, which generally grants title to produced water to whoever takes possession of it for the purpose of treating it for subsequent beneficial use. However, this statute only governs parties to instruments executed after September 1, 2019, which left parties to instruments executed prior to that date uncertain on whether they owned the produced water extracted from their property. The El Paso Court of Appeals undertook to resolve this conflict in Cactus Water Services, LLC v. COG Operating, LLC, and on July 28, 2023, it held that when instruments convey “oil and gas” or “oil, gas and hydrocarbons” to mineral owners without specifically reserving title to produced water or oil and gas waste, mineral owners have the sole right to produced water extracted from their property.
Continue Reading One Man’s Waste is Another Man’s Treasure: Texas Appellate Court Holds that Produced Water Belongs to Mineral Owners

In Freeport-McMoRan Oil & Gas LLC v. 1776 Energy Partners, LLC, — S.W.3d —, No. 22-0095, 2023 WL 3556695 (Tex. 2023), the Texas Supreme Court held that, as a matter of law, the operator of a joint operating agreement, Ovintiv, did not owe interest on production payments owed to the non-operator, 1776 Energy, that…