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
A new U.S. Geological Survey report has revealed significant untapped natural gas and oil resources across the Gulf Coast region, estimating 35.8 trillion cubic feet of natural gas and 28 million barrels of oil within the Hosston and Travis Peak Formations.
Continue Reading New USGS Report Highlights Major Gas Potential in Louisiana and Texas, Gulf Coast Region
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
On January 20, 2025, President Trump issued the “Unleashing American Energy” Executive Order (“EO”) with the stated purpose of ensuring an abundant supply of affordable and reliable energy in the United States.
Continue Reading NEPA Changes Slated Under President Trump’s Unleashing American Energy Executive Order
This week EPA released the newest version of its environmental justice (EJ) screening and mapping tool, EJScreen 2.3. EJScreen is a mapping tool that combines environmental and socioeconomic data and is used to screen for potentially overburdened communities that may be affected by federal government programs and activities.
Continue Reading EPA Releases New Version of EJScreen
On May 17, 2024, the Texas Supreme Court held that when a lease requires royalties to be paid on all gas sold or used off the premises, but the valuation point for said royalties is “at the well,” gas used off premises as fuel is deductible as a matter of law.
Continue Reading Texas Supreme Court Determines That Off-Lease Fuel is Deductible from Royalties Valued at the Well
On May 21, 2024, a group of 20 states, including Louisiana and Texas, filed an action in North Dakota district court challenging the Council on Environmental Quality’s (“CEQ”) finalized amendments to its National Environmental Policy Act (“NEPA”) regulations, arguing that the rule seeks expanded environmental review without statutory authority.
Continue Reading Louisiana and Texas Challenge CEQ’s Finalized NEPA Amendments
The United States Court of Appeals for the Fifth Circuit recently certified a question to the Texas Supreme Court asking what effect a free-use clause and an off-lease clause have on a royalty clause valuing royalties at the well. At issue was whether gas used as fuel off the leased premises could be deducted from royalties when the royalties were to be valued at the well under an oil and gas lease containing an off-lease clause and a free-use clause. Texas Supreme Court precedent provides that when a lease states that royalties must be valued on the gross proceeds received by lessees, free-use clauses do not allow for gas used as fuel off the leased premises to be deducted, but it is not clear on whether that same rationale would apply when royalties are valued at the well. Given that uncertainty, the Fifth Circuit could not confidently make an Erie guess on the issue and instead opted to certify the question to the Texas Supreme Court.
Continue Reading At the Well vs. Off the Lease: The Fifth Circuit Asks the Texas Supreme Court to Determine Whether Off-Lease Fuel May be Deducted from Royalties Valued at the Well