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 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
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