Devon Energy Production Company, L.P. v. Sheppard is a royalty dispute between several lessees, Devon Energy Production Co., L.P., et. al., and several lessors, Michael A. Sheppard, et. al., concerning a novel royalty term that may have a huge impact on the way oil and gas royalties are paid in the future.  See 13-19-00036-CV, 2020 WL 6164467, at *12 (Tex. App.—Corpus Christi Oct. 22, 2020, pet. filed).  The novel term, referred to as an “add-back” or “add-to-proceeds” provision, requires any deductions to the sale of production to be added back to the proceeds in order to determine the appropriate royalty base.  The lessors argue that under this term, the deductions in the lessees’ sales contracts attributable to the buyers’ post-transfer costs must be added to the gross proceeds in order to establish a royalty base above the gross proceeds.  The lessees disagree, countering that the clear intent of the provision is merely to prohibit the deduction of their own post-production costs, not the post-transfer costs of the buyers.  The lessors won in the trial court; the court of appeals affirmed.  Now the case is before the Texas Supreme Court, with a recently submitted amicus brief containing the argument that could turn the tides back in the lessees’ favor.
Continue Reading New Developments in Shocking Case Before the Texas Supreme Court Regarding Construction of Novel Oil & Gas Royalty Term

On September 30, 2016, Governor John Bel Edwards sued Attorney General Jeff Landry to compel him to approve several contracts between the Governor’s office and private legal counsel. In his Petition, the Governor alleged that the Attorney General’s role in approving the Governor’s contracts with private legal counsel is a ministerial duty that the Attorney General improperly refused to perform and requested that the Court order the Attorney General to approve the contracts at issue.
Continue Reading THE DISPUTE BETWEEN GOVERNOR JOHN BEL EDWARDS AND ATTORNEY GENERAL JEFF LANDRY OVER THE APPOINTMENT OF PRIVATE LEGAL COUNSEL CONTINUES…

Hours before a controversial set of new reporting requirements for government contractors was set to take effect, a federal court in Texas enjoined implementation of the requirements across the country.
Continue Reading New Government Contractor “Blacklisting” Reporting Requirements Put on Hold