On August 29, 2025, the U.S. Court of Appeals for the District of Columbia (the “Court” or the “Healthy Gulf Court”) issued its decision in Healthy Gulf v. U.S. Department of the Interior. This case marked the sixth occasion in which this Court has reviewed a challenge to a five-year leasing schedule adopted
On June 27, 2025, the Texas Supreme Court issued yet another landmark decision: Cactus Water Services, LLC v. COG Operating, LLC. Justice Devine delivered the opinion of the Court, holding that produced water is oil-and-gas waste, and, therefore, it belongs to the hydrocarbon lessee (i.e., the operator who is legally obligated to dispose of
On May 23, 2025, the Texas Supreme Court issued a long-awaited opinion in Cromwell v. Anadarko E&P Onshore, LLC, in which it held that two habendum clauses written in the passive voice did not specifically require production by the lessee, but instead could be perpetuated by production from anyone on the leased premises.
Continue Reading Not All Lessees Must Produce, According to New Texas Supreme Court Opinion Rejecting Washout
On May 9, 2025, the Texas Supreme Court issued a per curiam opinion in Roxo Energy Co., LLC v. Baxsto, LLC, — S.W.3d —, No. 23-0564, 2025 WL 1349581 (Tex. May 9, 2025), in which it held that a lessee was entitled to judgment as a matter of law on a lessor’s claims for fraud, fraudulent inducement, statutory fraud, and fraud by non-disclosure, all arising from the lessee’s alleged oral representations that were inconsistent with the parties’ written contracts.
Continue Reading Red Flags Negate Fraud Claims in Recent Texas Supreme Court Opinion
The Texas Supreme Court, in Myers-Woodward, LLC v. Undergrounds Services Markham, LLC, — S.W.3d —, No. 22-0878, 2025 WL 1415892 (Tex. May 16, 2025), held that surface owners own subsurface salt caverns, even when such caverns are created by mineral owners.
Continue Reading Ownership of Underground Storage Space Under Texas Law Resolved by Texas Supreme Court Decision
When an operator mistakenly overpays a royalty owner, it can recoup the overpayment from future royalties. While this is a common industry practice, the doctrine of equitable recoupment is seldom discussed in detail by Texas courts.
Continue Reading Fifth Circuit Provides Rare Overview of the Doctrine of Equitable Recoupment