In case you haven't noticed, the price of oil has tanked. As the price of WTI continues to hover under $40, things are probably going to get worse before they get better. So what happens when royalty owners, working interest owners, and overriding royalty owners receive notice that their operator has gone bankrupt and how
This is a special blog due to an experience I recently had over an oil and gas receivership lease. TEX. CIV. PRAC. & REM. CODE §64.091 et seq. provides a method whereby oil companies, who are unable to locate missing mineral estate owners and their heirs, may obtain a “receivership lease” from the missing mineral
In case you have not heard, things are bad! The world faces a pandemic, the bottom has fallen out of the stock market, and the price of oil is headed to zero. Whenever you read, “shelter in place” – assume things are not going well. One option of course is to simply “panic.” Follow all
Well, the price of oil is up a "bit" today. Here is a good reminder when drafting those "nasty" indemnity clauses: In every purchase and sale agreement, there is an indemnity clause. Indemnity clauses, which appear in many, many contracts and many, many types of contracts, are drafted to relieve one party to the contract
In today's disrupted oil and gas industry, expect to see a number of "emergency" business transactions. Our abilities to be effective in our negotiations may make a big difference for our clients. While this blog focuses on buying and selling oil and gas properties - it is applicable to all business transactions and negotiations. This
Hello friends. On December 17th, I will be presenting at a one-day educational seminar in Austin that will address easements, rights of way, and eminent domain. This is a good seminar for attorneys, right of way agents, landmen, engineers, surveyors, and administrative personnel. It will be approved for continuing education credits for virtually all professions.
Oil and gas title examinations are tough – and recent Texas Supreme Court and appellate court decisions on the construction of old royalty conveyances and reservations have complicated the examination process. These days it is hard to determine whether that 1950s deed reserved a “fixed royalty” (e.g. a 1/32nd interest in the oil and gas
Apparently, at least the staff of the Railroad Commission is taking an unduly restrictive view on Texas Rule 37. This Rule provides that, without notice and an opportunity for hearing, no well shall be drilled nearer than 467 feet to a property line. 16 TEX. ADMIN. CODE §3.37 3.37 (Tex. R.R. Comm’n, Statewide Spacing Rule).
Generally speaking, post-production costs are the expenses incurred in order to get natural gas from the wellhead to market. These costs include gathering, compression, dehydration, processing, fractionation, treating, handling, and transportation. For many years, natural gas sales were at the wellhead and price regulated (by the Federal Power Commission and later the Federal Energy Regulatory
Edward Wilhelm and I had the opportunity to make a presentation at the Ark-La-Tex annual landman conference late last month in Shreveport. By the way, the Ark-La-Tex is an excellent conference, competitively priced, and especially good if you are conducting business in east Texas or north Louisiana. One thing I see frequently, now, are 5-10
