In EOG Resources Inc. v. Chesapeake Energy Corp., No. 09-30362, __ F.3d __ (5th Cir. 4/29/10), the Fifth Circuit reinstated EOG’s contractual claim against Chesapeake under the parties’ joint operating agreement (JOA). EOG claimed that Chesapeake had unilaterally drilled three wells in the parties’ pooled mineral leases in Bossier
Liskow & Lewis
Proposal Encourages Oil & Gas Exploration in South Louisiana
By Michael A. Mahone, Jr.
The Louisiana Mineral and Energy Board is currently reviewing an incentive proposal that would offer a “royalty relief incentive” on new drilling leases along the Louisiana coast. Specifically, the proposal would offer royalties for a period of three years for wells drilled to a depth of fifteen thousand feet along…
EPA Announces January 2011 as Likely Date for Regulation of Greenhouse Gases Under PSD Program
By Stephen Wiegand
EPA recently announced its position regarding the timing of the regulation of greenhouse gases under the Clean Air Act’s Prevention of Significant Deterioration (PSD) Program.
A PSD permit is required before a new industrial facility can be built or an existing facility can be modified in a way that significantly increases pollutant…
Houston Court Rejects Weighted Average Royalty Payment Calculations Under Lease Agreement
In Shell Oil Co. v. Ross, No. 01-08-00713-CV (Tex. App.—Houston [1st Dist.] February 25, 2010, no pet. h.), Ross, a mineral interest owner, brought a breach of contract, unjust enrichment, and fraud action against natural gas lessee, Shell. Ross alleged that Shell failed to pay royalties in accordance with the…
Texas Court Upholds Temporary Injunction, Finds Cash in Lieu of Bond Meets Statutory Requirements
By Marie Carlisle:
The principle issue addressed in Adobe Oilfield Services v. Trilogy Operating, Inc., No. 11-09-00162-CV (Tex. App.—Eastland January 29, 2010), involves the granting of a temporary injunction to prevent the filing of liens against oil wells. Trilogy entered into contracts with Adobe to drill six wells. Trilogy paid Adobe’s invoices for the…
Proposed EPA Rules Would Subject Oil and Gas Sources to Mandatory Reporting of Greenhouse Gas Emissions
By Stepehen Wiegand
In October 2009, EPA promulgated the Mandatory Reporting of Greenhouse Gases Rule. This rule required reporting of greenhouse gas emissions from a number of large sources including suppliers of fossil fuels or industrial greenhouse gases, manufacturers of vehicles and engines, and certain facilities that emit 25,000 metric tons or more per year…
Federal Judge Grants Motions to Dismiss Terrebonne Assessor’s Ad Valorem Tax Suits
By Kelly Becker
Federal Judge Ginger Berrigan issued a comprehensive Order and Reasons addressing and granting a series of motions to dismiss filed by oil and gas company defendants, and individual executive officer defendants, all of which were pending in the consolidated federal court Bonvillain Terrebonne Parish ad valorem tax suits. The Court gave Assessor…
Office of Conservation Publishes Proposed Amendments to Statewide Order 29-B
In early 2010, the Louisiana Office of Conservation published in the Louisiana Register a Notice of Intent to amend Statewide Order 29-B, the regulation governing the storage, treatment, and disposal of exploration and production waste at oilfield sites. The proposed amendments provide specific procedures for the evaluation and remediation of groundwater conditions and potential sources…
Federal Court Remands Mineral Lease Dispute for Lack of Evidence of Amount in Controversy
By Emma J. Hinnigan
In Sullivan v. Chesapeake Louisiana, L.P., 09-0579, 2009 WL 3735798 (W.D. La. Nov. 6, 2009), the Western District of Louisiana remanded a case seeking rescission of a mineral lease back to state court after the defendant failed to provide proof of the amount in controversy, namely the total value of the…
Courts as Battlefields in Climate Fights
By Elisabeth Lorio Baer
Kivalina, Alaska, an Inupiat Eskimo village of 400 inhabitants perched on a barrier island north of the Arctic Circle, is bringing suit against two dozen fuel and utility companies, including ExxonMobil and Shell Oil, accusing them of helping to cause the climate change that it alleges is accelerating the island’s erosion.