For nearly three years, unit operators in Louisiana have waited to see whether the Western District of Louisiana would change course or double down on its March 2019 decision in Johnson v. Chesapeake. In the original Johnson decision, the district court sent shockwaves across the oil and gas industry in Louisiana by finding that post-production costs were not properly deductible against proceeds owed to unleased mineral owners. In the wake of that decision, at least two putative class actions were filed against the largest producers in the Haynesville Shale, and operators have been flooded with demands and suits from unleased owners who relied on Johnson to contest the validity of post-production cost decisions from unleased interests.
Continue Reading Long-Awaited Victory on the Proper Deductibility of Post-Production Costs from Unleased Mineral Owners – The Western District of Louisiana Reverses Course in Johnson v. Chesapeake and Self v. BPX
Paul Adkins
Fifth Circuit Rejects Disgorgement of Profits Claim for Pipeline Trespass
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…
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…
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…