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EOG Resources, Inc. v. CNH Enterprise Holdings, Ltd.
EOG Resources sought dismissal under the Texas Citizens Participation Act of CNH's failure-to-protect-from-drainage claim, arguing the claim was based on its Railroad Commission permit application for a Gary 2H Well drilled 148 feet from the lease line in the Eagleville Field. The San Antonio Court of Appeals affirmed denial of the TCPA motion, holding that CNH's implied covenant claim was based on EOG's failure to drill an offset well to prevent drainage from the 276,420-barrel producer, not on EOG's communications with the Railroad Commission.
Analysis
Fourth Court Holds TCPA Does Not Apply to Implied Covenant Drainage Claim Despite Railroad Commission Permit Application
EOG Resources sought dismissal under the Texas Citizens Participation Act of CNH's failure-to-protect-from-drainage claim, arguing the claim was based on its Railroad Commission permit application for a Gary 2H Well drilled 148 feet from the Hundley Lease boundary—closer than the 330-foot lease-line requirement under Eagleville Field Rules. The San Antonio Court of Appeals affirmed denial of the TCPA motion in a memorandum opinion, concluding the TCPA does not apply to CNH's claim.
Fourth Court Narrows TCPA Application in Oil and Gas Drainage Dispute: Implied Covenant Claims Survive Anti-SLAPP Motion
EOG Resources sought dismissal under the Texas Citizens Participation Act of CNH's failure-to-protect-from-drainage claim, arguing the claim was based on its Railroad Commission permit application for a Gary 2H Well drilled 148 feet from the lease line in the Eagleville Field. The San Antonio Court of Appeals affirmed denial of the TCPA motion, holding that CNH's implied covenant claim was based on EOG's failure to drill an offset well to prevent drainage from the 276,420-barrel producer, not on EOG's communications with the Railroad Commission.