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NGL Water Solutions Permian, LLC v. Lime Rock Resources V-A, L.P.
NGL Water Solutions sought declaratory relief in Harris County based on a venue-selection clause in a Shut In Agreement, arguing it immunized the company from liability for alleged wastewater migration that damaged Lime Rock's Bone Spring formation wells in Loving County. The Business Court transferred venue to Loving County, holding that Section 15.011's mandatory venue provision for actions to recover damages to real property superseded the contractual forum selection clause, which failed to qualify as a "major transaction" under Section 15.020(a).
Analysis
Business Court Applies Mandatory Venue Rule to Declaratory Judgment Action Over Saltwater Disposal Well Damage in Loving County
NGL Water Solutions sought declaratory relief in Harris County based on a venue-selection clause in a Shut In Agreement, arguing it immunized the company from liability for alleged wastewater migration that damaged Lime Rock's Bone Spring formation wells in Loving County. The Business Court transferred venue to Loving County, holding that Section 15.011's mandatory venue provision for actions to recover damages to real property trumped the contractual forum selection clause, which failed to qualify as a "major transaction" under Section 15.020.
Texas Business Court Applies Mandatory Real Property Venue Rule to Saltwater Disposal Well Contamination Dispute
NGL Water Solutions sought declaratory relief in Harris County based on a venue-selection clause in a Shut In Agreement, arguing it immunized the company from liability for alleged wastewater migration that damaged Lime Rock's Bone Spring formation wells in Loving County. The Business Court transferred venue to Loving County, holding that Section 15.011's mandatory venue provision for actions to recover damages to real property superseded the contractual forum selection clause, which failed to qualify as a "major transaction" under Section 15.020(a).