Oil & Gas Litigation Analysis

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Lease Litigation

Business Court Enforces Letter Agreement Requiring Competitor to Waive Objections to Off-Lease Drilling Applications

Joel Reese | Jul 06, 2026

… Context Slant Operating, LLC and Slant WTX Holdings II, LLC brought a breach of contract action against competitor Octane Energy Operating, LLC arising from a dispute over off-lease drilling rights on adjacent leaseholds. The parties had entered into a letter agreement under which Slant agreed to provide a waiver for Octane's permit application to …

Railroad Commission Texas Business Court Off-Lease Drilling Letter Agreement Contract Definiteness
Lease Litigation

Fourth Court Addresses Subject Matter Jurisdiction Over Hypothetical JOA Declarations and Cross-Netting of Multi-Agreement Obligations

Joel Reese | Jul 06, 2026

… Oil EF, LLC and Marathon Oil EF II, LLC (collectively "Marathon") for breach of contract and declaratory judgment regarding the parties' rights and obligations under three joint operating agreements (JOAs). The agreements governed how the parties would share expenses and revenues from oil wells drilled in an area where both held ownership interests. Marathon counterclaimed …

Joint Operating Agreement Eagle Ford Subject Matter Jurisdiction UDJA Cross-Netting
Lease Litigation

Business Court Enforces Letter Agreement Requiring Reciprocal Off-Lease Penetration Point Waivers Between Adjacent Operators

Joel Reese | Jul 20, 2026

… Parties Slant Operating, LLC and Slant WTX Holdings II, LLC brought a breach of contract action against competitor Octane Energy Operating, LLC in the Business Court of Texas. The dispute centered on a letter agreement between the parties governing drilling operations on adjacent leaseholds. Under the agreement, the parties committed to provide reciprocal waivers allowing …

Railroad Commission Business Court of Texas Letter Agreement Contract Definiteness Off-Lease Penetration Points
Lease Litigation

First Court Reverses Severance of Interwoven Midstream Cost Inflation Claims in Williston Basin JOA Dispute

Joel Reese | Jul 20, 2026

… the Chord Parties, Crestwood Parties, and certain executives (the "Executive Parties"), including breach of contract theories under the 1999 JOA and various tort claims such as fraud, civil conspiracy, negligence, gross negligence, tortious interference, breach of fiduciary duty, and alter ego theories. The appellees moved to dismiss under Texas Rule of Civil Procedure 91a, with …

Joint Operating Agreement Working Interest Midstream Williston Basin Rule 91a Economic Loss Rule Severance

Risk-of-Loss Provisions in War-Zone Service Contracts: Accrual, Affirmative Defenses, and Termination-for-Convenience Claims

Joel Reese | Jul 06, 2026

… wrongful refusal to make payments due under certain contracts. KBR counterclaimed for breach of contract . Following a bench trial in Harris County's 55th District Court, judgment was entered in favor of Tamimi. Both parties appealed, presenting multiple issues concerning contract interpretation, statute of limitations, and damages in the context of service contracts performed in active …

Statute of Limitations Breach of Contract Affirmative Defense Termination for Convenience Risk of Loss
Lease Litigation

Business Court Remands Produced Water Disposal Dispute Over Amount-in-Controversy Threshold

Joel Reese | Jul 06, 2026

… the Fruit State, Cigarillo, and Bon Bon spills—OWL sued EOG for breach of contract in the 152nd Judicial District Court of Harris County, Texas on April 9, 2025. OWL alleged EOG breached provisions obligating it to deliver produced water meeting certain specifications and to reimburse and indemnify OWL for injuries caused by EOG's failure …

Removal Jurisdiction Produced Water Midstream Business Court of Texas Amount in Controversy

Southern District of Texas Dismisses $3 Million Equipment Supply Claim Against PDVSA on Jurisdictional and Pleading Grounds

Joel Reese | Jul 20, 2026

… a principal balance of $3,024,267 outstanding. Ashburton brought claims for breach of contract , quantum meruit, and acknowledgement of debt. Procedural History and Service Complications Ashburton initially sued PDVSA, PSI, and Bariven in Texas state court on June 9, 2020, for breach of contract and quantum meruit. PDVSA and Bariven removed the case to …

PDVSA Alter Ego Liability Joint Liability Twombly-Iqbal Equipment Supply Contracts
Lease Litigation

Texas Supreme Court Clarifies Notice Requirements and Non-Consent Penalties Under AAPL Form 610 Operating Agreement

Joel Reese | Jul 06, 2026

… County, Texas, brought an action against Valence Operating Company to recover for breach of contract . The parties operated under a modified 1977 American Association of Petroleum Landmen Form 610 Model Form Operating Agreement. Dorsett claimed Valence breached the agreement by failing to allow the thirty-day notice period to elapse before commencing work and by …

Joint Operating Agreement Texas Supreme Court Working Interest AAPL Form 610 Non-Consent Penalty
Royalty Disputes

Texas Business Court Clarifies Amount-in-Controversy Standard for Saltwater Disposal Royalty Disputes

Joel Reese | Jul 06, 2026

… 342nd Judicial District Court of Tarrant County on February 10, 2025, alleging breach of contract and seeking unpaid royalties. NGL Permian removed the case to the Texas Business Court on March 11, 2025, without Black Mountain's consent, asserting the amount in controversy exceeded the Business Court's $10 million jurisdictional threshold under Section 25A.004(d …

Permian Basin Midstream Saltwater Disposal Business Court Jurisdiction Amount in Controversy

Energy Broker's Letter of Assurance Fails to Create Enforceable Rate Guarantee Against Pass-Through Regulatory Charges

Joel Reese | Jul 20, 2026

… district court granted Finite's motion for summary judgment on WCM's counterclaims for breach of contract and misrepresentation. The court found that the LOA's explicit disclaimer—stating it "shall in no way be considered a guarantee"—precluded WCM's breach of contract claim. The court further determined that the LOA only obligated Finite to use "best efforts …

Contract Interpretation Energy Brokerage Regulatory Pass-Through Costs Letter of Assurance Misrepresentation

Fourteenth Court Affirms Judgment on Oral Modification Defense in Oil Field Equipment Procurement Dispute

Joel Reese | Jul 20, 2026

… required modifications to be in writing. AOSS also filed a counterclaim for breach of contract , alleging Equip Up violated the Non-Disclosure Agreement (NDA). Procedural History Equip Up filed suit in February 2020, asserting claims for breach of contract , quantum meruit, and promissory estoppel, later amending to add a defamation claim. After a bench trial …

Statute of Frauds Oilfield Services Quantum Meruit Contract Modification Texas Fourteenth Court of Appeals
Lease Litigation

District Court Rules for Pioneer in Winter Storm Uri Force Majeure Dispute Over Firm Gas Delivery Obligations

Joel Reese | Jul 20, 2026

… and Contractual Framework MIECO LLC, an oil and natural gas trader, brought breach of contract claims against Pioneer Natural Resources USA Inc. after Pioneer declared force majeure and failed to deliver contracted volumes during Winter Storm Uri in February 2021. The parties' contract consisted of a NAESB Base Contract dated October 28, 2014, Special Provisions …

Permian Basin Force Majeure NAESB Contract Winter Storm Uri Fifth Circuit
Pipeline & Easement

Dallas Court of Appeals Reverses $37.8 Million Award in Permian Basin Crude Oil Transportation Dispute Over WTL Service and Suezmax Vessel Access

Joel Reese | Jul 06, 2026

… damages award to ARM, rendered judgment that ARM take nothing on its breach of contract claims against Medallion, and remanded Medallion's breach of contract counterclaim to the trial court for further proceedings. The court noted that "all issues are settled in law" and issued a memorandum opinion under Texas Rule of Appellate Procedure 47.4 …

Permian Basin Midstream Ship-or-Pay Tariff Incorporation Terminal Services
Royalty Disputes

District Court Partially Denies Dismissal in Marcellus Shale Royalty Dispute Alleging Affiliate Sales Manipulation and RICO Violations

Joel Reese | Jul 20, 2026

… deductions on monthly statements. The Southern District of Texas denied dismissal of breach of contract claims while dismissing all claims against individual defendants including SWN's CEO, CFO, and General Counsel

Post-Production Costs Royalty Calculation Marcellus Shale Affiliate Sales RICO
M&A Litigation

Business Court Construes Force Majeure Carve-Out in Industry Form Gas Contract: No Duty to Purchase Spot-Market Gas

Joel Reese | Jul 20, 2026

… natural gas than contracted to energy trader Mercuria Energy America, triggering a breach of contract dispute over whether Marathon was required to purchase spot-market gas to fulfill delivery obligations. The Business Court of Texas held that the contract's force majeure provision relieved Marathon of any obligation to seek alternative gas supplies including spot-market …

Force Majeure Business Court of Texas Gas Sales Contract Spot Market Industry Form Contract
Lease Litigation

Fourth Court Affirms $14.9 Million Breach Award Against Surface Owner in Water Purchase Agreement Dispute Over Access Rights

Joel Reese | Jul 20, 2026

The San Antonio Court of Appeals affirmed a $14.9 million breach of contract judgment against surface owners Dean Davenport and related entities in a dispute with EOG Resources over a 2022 water purchase agreement. The Davenports had sought to restrict all of EOG's access to a single gate under the agreement, while EOG contended …

Eagle Ford Surface Use Agreement Contract Interpretation Water Purchase Agreement Access Rights
Lease Litigation

Eastern District of Texas Denies TRO Seeking to Block Gulf of Mexico Well Abandonment in Joint Operating Agreement Dispute

Joel Reese | Jul 20, 2026

… with decommissioning. W&T filed suit on September 26, 2025, asserting four breach -of- contract claims and seeking both declaratory and injunctive relief to prevent Murphy from abandoning what W&T believes is a viable well capable of producing significant reserves. The Court's Irreparable Injury Analysis Judge Truncale's opinion focused exclusively on the irreparable injury …

Joint Operating Agreement Gulf of Mexico Preliminary Injunction Irreparable Injury Well Abandonment
Lease Litigation

Eastland Court Affirms Summary Judgment on Fraud Claim Where Oral Drilling Promises Contradicted Paid-Up Lease Terms

Joel Reese | Jul 20, 2026

… P in a multi-claim dispute brought by Evans Resources alleging fraud, breach of contract , bad faith pooling, and rule against perpetuities violations concerning horizontal well pad development rights in Midland County. The court held that landowners' reliance on oral representations about timely horizontal drilling was unjustifiable where the lease granted only a discretionary right …

Permian Basin Paid-Up Lease Expert Testimony Fraud Justifiable Reliance
Lease Litigation

Standing and Damages in Oil Purchaser Payment Dispute: District Court Rejects Dismissal Despite Third-Party Judgment Satisfaction

Joel Reese | Jul 20, 2026

… Unit in Miller County, Arkansas, sued oil purchaser DK Trading & Supply for breach of contract and violation of Arkansas Code § 15-74-601(a) after DKTS redirected working interest revenue to a third-party judgment holder without garnishment proceedings. Judge Andrew S. Hanen of the Southern District of Texas denied DKTS's motion to dismiss, though …

Working Interest Standing Arkansas Operator Liability Payment Disputes
Lease Litigation

Fourteenth Court Reverses Want-of-Prosecution Dismissal Where Contractor Awaited Whitney Certificate for Service on Secretary of State

Joel Reese | Jul 20, 2026

The Fourteenth Court of Appeals reversed dismissal of an oilfield contractor's breach of contract and mineral lien foreclosure suit against Rise Petroleum Investments LLC, holding that Gulf Coast Lease Service's failure to timely move for default judgment was not intentional or the result of conscious indifference where the Secretary of State's delay in issuing the …

Want of Prosecution Rule 165a Whitney Certificate Mineral Lien Service of Process Harris County
Royalty Disputes

Eastland Court of Appeals Construes Double-Fraction Royalty Reservation as Floating Interest, Rejects Multiple Estoppel Defenses

Joel Reese | Jul 06, 2026

… reversed the trial court's determination that the royalty owners could bring a breach of contract claim

Texas Supreme Court Double-Fraction Royalty Owner Floating Royalty Division Order Estoppel
Lease Litigation

Business Court Jurisdiction Upheld Over $10 Million Directional Drilling Waiver Agreement

Joel Reese | Jul 06, 2026

… Court of Texas denied Octane Energy's plea to the jurisdiction in a breach of contract action brought by Slant Operating, holding that Slant adequately pleaded that a letter agreement containing reciprocal waivers of objections to directional drilling applications constituted a qualified transaction with aggregate value exceeding the $10 million jurisdictional threshold. The court rejected Octane's …

Business Court of Texas Directional Drilling Subject Matter Jurisdiction Lease Operations Qualified Transaction
Royalty Disputes

Fifth Circuit Applies Equitable Recoupment to Bar Successor Royalty Owner's Claims for Overpayments Made to Predecessor

Joel Reese | Jul 06, 2026

… made to the Richters before the transfer. The court rejected the plaintiffs' breach of contract , Texas Natural Resources Code, and conversion claims arising from Ovintiv's Prior Period Adjustment to correct a gas flow error that resulted in overpayments to the Richters between September 2016 and January 2018

Royalty Owner Unjust Enrichment Fifth Circuit Equitable Recoupment Eagle Ford
Pipeline & Easement

First Court Affirms $23.5 Million Lost Profit Award in Water Supply Exclusivity Dispute

Joel Reese | Jul 06, 2026

… damages, which included lost profits, did not apply to direct damages from breach of contract ." The court explained that Lindale's lost benefit of the bargain was the loss of profits for supplying water to Equinor's wells when Equinor used other suppliers, since Lindale expected under the contract to provide water to all of Equinor's wells …

Texas Court of Appeals Lost Profits Water Supply Agreements Benefit-of-the-Bargain Damages Exclusivity Provisions
Environmental

District Court Denies Dismissal of OCSLA Decommissioning Dispute Over Hurricane-Damaged Gulf Platform

Joel Reese | Jul 20, 2026

Arena Energy sued Maritech Resources and TETRA Technologies for breach of contract after defendants allegedly failed to perform decommissioning obligations on a Hurricane Ike-damaged platform at EC Block 328 in the Gulf of Mexico, despite a 2002 Purchase and Sales Agreement requiring Maritech to assume all plugging and abandonment liabilities. The Southern District of …

M&A Litigation OCSLA Indemnity Provisions Gulf of Mexico Decommissioning Liability
Lease Litigation

Business Court Dismisses Leaseholder's Third-Party Beneficiary Claim in Directional Drilling Dispute

Joel Reese | Jul 20, 2026

… drilling application, both Slant Operating and Slant WTX Holdings brought suit alleging breach of contract . The Standing Challenge Octane filed a plea to the jurisdiction challenging Slant WTX Holdings' standing to assert the breach of contract claim, arguing that the leaseholder was not a party to the letter agreement and could not establish third-party …

Business Court of Texas Directional Drilling Third-Party Beneficiary Standing Lease Litigation
Regulatory

Texas Business Court Holds Legislative Reduction of Amount-in-Controversy Threshold Constitutes 'Fact' Permitting Second Removal

Joel Reese | Jul 06, 2026

… Section 25A.006(f)(1)(B), permitting EOG Resources to remove a breach of contract action two days after the statute's effective date despite the Court having previously remanded the case for failure to meet the higher threshold. OWL AssetCo, a water services provider seeking indemnification for produced water contamination damages in Eddy County, New …

Permian Basin Texas Business Court Delaware Basin Removal Jurisdiction Water Services
Lease Litigation

Legal Malpractice and Collateral Estoppel: When Arbitration Awards Don't Bind Subsequent Litigation Over Contract Interpretation

Joel Reese | Jul 06, 2026

… for malpractice after arbitrators denied benefit-of-the-bargain damages in a breach of contract action involving a geophysical services vessel charter, arguing the lawyers failed to meet the burden of proof on lost profits. The Eastland Court of Appeals affirmed summary judgment for the defense lawyers, holding that a limitation-of-liability provision in …

Limitation of Liability Lost Profits Legal Malpractice Arbitration Collateral Estoppel

Limitation of Liability Clauses vs. DTPA No-Waiver Provision: When Contractual Caps Survive Consumer Protection Statutes

Joel Reese | Jul 06, 2026

… to a malfunctioning smoke detector, Arthur's Garage sued the alarm company for breach of contract , negligence, breach of express and implied warranties, and violations of the Texas Deceptive Trade Practices Act (DTPA). The alarm installation contract contained a provision entitled "Liquidated Damages and Indemnification" that limited the company's potential liability to $350. After the premises …

Express Negligence Doctrine Limitation of Liability DTPA Indemnity Provisions Commercial Contracts
Lease Litigation

Texas Business Court Denies Third-Party Beneficiary Standing to Leaseholder in Horizontal Drilling Waiver Dispute

Joel Reese | Jul 06, 2026

… Operating's drilling application, both Slant Operating and Slant Holdings brought suit alleging breach of contract . The Standing Dispute Octane filed a plea to the jurisdiction and a no-evidence motion for summary judgment, challenging whether Slant Holdings—the leaseholder—had standing to assert a breach of contract claim. The central issue was whether Slant Holdings …

Railroad Commission Texas Business Court Horizontal Drilling Third-Party Beneficiary Standing
Lease Litigation

Thirteenth Court Affirms Summary Judgment on Communitization Agreement Dispute Over Net Revenue Interest Calculations in Karnes County Unit

Joel Reese | Jul 06, 2026

… affirmed summary judgment for EOG and Reagan Smith Energy Solutions, rejecting Roane's breach of contract claims based on the 2017 communitization agreement and joint operating agreement after Roane had executed WPAs, AFEs, and a horizontal unit designation all depicting the reduced 702.24-acre unit

Joint Operating Agreement Eagle Ford Net Revenue Interest Communitization Agreement BLM Karnes County
Lease Litigation

Texas Business Court Bars $10M+ Recovery in Off-Lease Drilling Case on Privity Grounds Despite Waiver Breach

Joel Reese | Jun 25, 2026

… threshold question of which entity, if either, could recover damages for Octane's breach . Slant Operating possessed contract privity as a party to the waiver agreement but owned no mineral interests and therefore suffered no economic damages from the off-lease drilling. Conversely, Slant Holdings owned the minerals and sustained the revenue loss but was not …

Permian Basin Texas Business Court Reciprocal Waiver Agreement Contract Privity Off-Lease Drilling
Pipeline & Easement

Texas Supreme Court Reverses $6.1 Million Pipeline Breach Award, Holds Courts Impermissibly Blue-Penciled Force Majeure Provision

Joel Reese | Jul 20, 2026

… Midstream (Alabama Intrastate), LLC for pipeline capacity. Rainbow sued American Midstream for breach of contract , repudiation, fraud, fraudulent inducement, and negligent misrepresentation after disputes arose concerning the pipeline owner's obligations under the agreement. Following a bench trial in Harris County's 157th District Court, Rainbow obtained a judgment for $6,145,215.89 in actual damages …

Texas Supreme Court Force Majeure Midstream Contract Interpretation Lost Profits
M&A Litigation

First Court Reverses Temporary Injunction Freezing Crude Oil Broker's Assets Over $5.6 Million Payment Dispute

Joel Reese | Jul 20, 2026

… 43 and had received payment for those barrels. Apricus filed suit for breach of contract , suit on sworn account, and quantum meruit, seeking a temporary injunction to prevent Axis from transferring or distributing its assets, particularly the $2.18 million received from other sales. Financial Evidence and Insolvency Claims At the temporary injunction hearing, Apricus …

Crude Oil Marketing Temporary Injunction Insolvency Event ConocoPhillips GTC Payment Default
Lease Litigation

Fourteenth Court Holds Non-Signatory Bound by Forum-Selection Clause Through Incorporation in Alaska JOA Dispute

Joel Reese | Jul 20, 2026

… Agreement shall control." When the Davis Parties sued in Harris County alleging breaches of contract including charging Prohibited Expenses against carried interests and failing to assign proportionate lease interests, Cornucopia filed a special appearance arguing it never signed the Assignment and therefore never consented to Texas jurisdiction. The Court's Analysis: Contractual Consent to Jurisdiction The …

Joint Operating Agreement Working Interest Alaska Forum-Selection Clause Carried Interest Special Appearance
Lease Litigation

Ninth Court of Appeals Reverses on Habendum Clause Construction: Whether 90-Day Cessation Provision Replaces Clifton Prudent Operator Standard

Joel Reese | Jul 20, 2026

… similar action regarding the Sugarberry Lease. Zarvona sued both mineral owners seeking breach -of- contract damages and declaratory relief that the leases remained in full force and effect because there had been continuous production in paying quantities. The parties' competing summary judgment evidence included production records showing that while the units collectively and individually generated …

Habendum Clause Lease Termination Production in Paying Quantities Clifton v. Koontz Pooled Units Texas Courts of Appeals
Lease Litigation

Ninth Court Reverses Default Judgment in $1.3M Operating Agreement Dispute Over E-Filing Deadline Calculation Under Rule 21(f)(5)

Joel Reese | Jul 20, 2026

… and Default Judgment Gordy Oil Company sued Proline Energy Resources, Inc. for breach of contract , quantum meruit, and unjust enrichment, claiming Proline owed money under an oil and gas operating agreement. After Proline failed to timely answer following service on its registered agent via certified mail on July 3, 2023, Gordy moved for default judgment …

Default Judgment Operating Agreement Texas Civil Procedure Plenary Power E-Filing
Lease Litigation

El Paso Court Construes Retained-Acreage Clause as Covenant, Not Special Limitation, in Permian Lease Termination Dispute

Joel Reese | Jul 20, 2026

… lease's force majeure clause extended the drilling deadline. Point Energy counterclaimed for breach of contract . The 143rd District Court in Loving County granted some summary judgment motions and denied others, leading to a permissive interlocutory appeal that has now traveled to the El Paso Court of Appeals twice, with an intervening trip to the Texas …

Permian Basin Habendum Clause Special Limitation Horizontal Drilling Retained Acreage
Lease Litigation

Eastland Court Enforces Right of First Refusal for Saltwater Disposal Well Placement in Surface Use Agreement

Joel Reese | Jul 20, 2026

… offering placement to the surface owners, the surface owners brought suit for breach of contract . Following a jury trial in the 118th District Court of Howard County, the court entered judgment on the jury verdict awarding damages to the surface owners and awarded attorney's fees. SM Energy appealed. The Contractual Dispute The central issue turned …

Right of First Refusal Surface Damage Texas Court of Appeals Saltwater Disposal Benefit-of-the-Bargain Damages

Solar Panel Sales Fraud Claims Survive Dismissal Despite Statute of Limitations Challenge in Texas Federal Court

Joel Reese | Jul 20, 2026

… Amended Complaint, the Allens brought six causes of action against Vivint: (1) breach of contract ; (2) promissory estoppel; (3) Texas Deceptive Trade Practices Act violations; (4) fraud; (5) negligent misrepresentation; and (6) fraudulent lien. The Motion to Dismiss Vivint moved to dismiss all of the Allens' claims, asserting that the Allens failed to state a …

Texas Statute of Limitations DTPA Rule 9(b) Consumer Fraud
Royalty Disputes

El Paso Court of Appeals Affirms Take-Nothing Judgment in Bad-Faith Washout Case Involving Reeves County ORRI Termination

Joel Reese | Jul 20, 2026

… Staley's claims for bad-faith washout of overriding royalty interests, conspiracy, and breach of contract

Overriding Royalty Interest Reeves County Lease Termination Bad-Faith Washout Surrender Clause
M&A Litigation

Business Court Enforces NAESB Transaction Confirmations in Natural Gas Force Majeure Dispute

Joel Reese | Jul 20, 2026

… than the agreed-upon quantity for a given month, Mercuria brought a breach of contract action challenging the validity of Marathon's force majeure declaration. The dispute centered on whether a pipeline delivery term in Marathon's transaction confirmation—which supported the force majeure declaration—became part of the binding contract between the parties. The Confirmation Battle …

Force Majeure NAESB Business Court of Texas Natural Gas Trading Transaction Confirmations

First Court Holds Comparative Indemnity Unenforceable Without Express Language in Refinery Contractor Agreement

Joel Reese | Jul 06, 2026

… million of the settlement amount. Blanchard and Marathon then sued Industrial for breach of contract , seeking to enforce the indemnity provision in Article 13.1 of the parties' contract. That provision required Industrial to "indemnify ... Company [and] its affiliated companies ... from and against all losses, damages ... and other liabilities ... because of ... bodily injury, including death …

Texas Court of Appeals Indemnity Express Negligence Doctrine Refinery Operations Contractor Liability
Lease Litigation

Texas Business Court Holds Force Majeure Clause Excused Spot Market Purchases and Buybacks After Winter Storm Uri

Joel Reese | Jul 06, 2026

… gas volume for the month, Marathon declared force majeure. Mercuria brought a breach of contract action disputing Marathon's force majeure declaration, arguing that Marathon should have taken additional steps to fulfill its delivery obligations despite the storm's impact. The Central Dispute: Spot Market Purchases and Buyback Obligations Mercuria advanced two principal arguments challenging Marathon's force …

Texas Business Court Force Majeure Winter Storm Uri NAESB Natural Gas Marketing
Lease Litigation

Ohio Supreme Court Holds Oil-and-Gas Landmen Must Be Licensed Real Estate Brokers to Recover Compensation for Lease Negotiation

Joel Reese | Jul 06, 2026

… refused to pay for certain leases, Dundics filed suit asserting claims for breach of contract , conversion, fraud, unjust enrichment, and quantum meruit. The Licensing Dispute Eric Petroleum moved to dismiss on the ground that Dundics was not a licensed real-estate broker and therefore could not maintain a cause of action under Ohio Rev. Code …

Landman Licensing Real Estate Broker Ohio Lease Negotiation Quantum Meruit
Lease Litigation

Co-Tenant Production Cannot Extend Bottom Lease Under Habendum Clause: Cimarex v. Anadarko

Joel Reese | Jul 06, 2026

… value of production from two wells on the property. Cimarex brought a breach of contract action alleging Anadarko failed to comply with this settlement agreement. Anadarko moved for summary judgment, asserting that Cimarex's lease and interest in the property had terminated. The district court granted summary judgment in favor of Anadarko and awarded attorney's fees …

Habendum Clause Lease Termination Texas Court of Appeals Co-Tenancy Top Lease
Lease Litigation

Fifth Circuit Clarifies Force Majeure Standards in Natural Gas Sales Contracts After Winter Storm Uri

Joel Reese | Jul 06, 2026

… its failure to deliver agreed-upon volumes of gas. MIECO sued for breach of contract , arguing that Pioneer improperly invoked force majeure and was obligated to purchase replacement gas on the spot market to fulfill its delivery obligations. The district court granted Pioneer summary judgment, and MIECO appealed. The Force Majeure Interpretation Dispute The central …

Permian Basin Force Majeure Winter Storm Uri Fifth Circuit Natural Gas Sales Contracts
Pipeline & Easement

Fort Worth Court Reverses JOA Breach Finding: Operator's Failure to Invoice Precludes Recovery for Statutory Lien Expenses

Joel Reese | Jul 06, 2026

… payment under the JOA." The court found this admission fatal to the breach of contract claim, holding that the plain language of the JOA contained no such requirement or prohibition that would obligate CL III to pay unbilled expenses or refrain from enforcing a validly assigned statutory lien. Implications for Joint Operating Agreements This decision …

Joint Operating Agreement Texas Court of Appeals Midstream COPAS Statutory Lien
Pipeline & Easement

Texas Supreme Court Reverses $6.1 Million Award in Natural Gas Transportation Contract Dispute Over Balancing Services

Joel Reese | Jul 06, 2026

… contract design. The Court remanded for a new trial on both parties' breach -of- contract claims, leaving open the possibility of different damages theories on remand

Texas Supreme Court Midstream Contract Interpretation Lost Profits Firm Transportation Agreement
Pipeline & Easement

Eastland Court Applies Statute of Frauds to Gas Processing Agreement, Enforces Damage Limitation Clause Against Lost Profit Claims

Joel Reese | Jul 06, 2026

… suit against XTO Energy Inc., a gas extraction company, asserting claims for breach of contract , fraud in the inducement, fraud and string along fraud, negligent misrepresentation, unjust enrichment, quantum meruit, and declaratory judgment. ETC alleged that XTO breached the agreement's exclusivity clause by selling gas to third parties without providing compensation to ETC. The 385th …

Statute of Frauds Texas Court of Appeals Midstream Damage Limitation Clause Gas Processing Agreement
M&A Litigation

Fort Worth Court of Appeals Voids $950,000 Crane County Asset Sale for Lack of Consideration Due to Buyer's Unfettered Discretion

Joel Reese | Jul 06, 2026

… to sell the property. Cooper sued Maverick and two related entities for breach of contract , declaratory judgment, and statutory fraud, seeking specific performance of the letter agreement. The Maverick entities defended on the ground that the letter was unenforceable for lack of consideration, arguing that Cooper's "sole discretion" language made its promise to perform illusory …

Asset Purchase Agreement M&A Litigation Texas Court of Appeals Consideration Specific Performance
Royalty Disputes

Texas Supreme Court Holds Market Value Royalty Clause Controls Even When Lessee Realizes Above-Market Price Under Long-Term Contract

Joel Reese | Jul 06, 2026

… rather than the higher GPA price, prompting the royalty owners to assert breach of contract and fraud claims. The Royalty Calculation Dispute The central issue was whether lessees owing market-value royalties must pay based on prevailing market prices or on the actual price realized when that price exceeds market value. The royalty owners argued …

Texas Supreme Court Market Value Royalty Implied Covenant to Market Gas Purchase Agreement Royalty Calculation
Royalty Disputes

Texas Supreme Court Rejects Fraudulent Concealment Defense Where Publicly Available Information Could Have Revealed Royalty Underpayments

Joel Reese | Jul 06, 2026

… prices of Shell and other operators. In 2002, the Rosses sued for breach of contract , unjust enrichment, and fraud, arguing that fraudulent concealment tolled the statute of limitations because Shell "set up an elaborate scheme" to underpay royalties and made "multiple misrepresentations to cover up this scheme." The trial court ruled as a matter of …

Texas Supreme Court Royalty Owner Statute of Limitations Fraudulent Concealment Discovery Rule
Lease Litigation

Thirteenth Court Reverses Summary Judgment on JOA Operator's Duty to Commence Drilling Operations After All Parties Consent

Joel Reese | Jul 06, 2026

… the trial court's summary judgment in favor of Burlington on Texas Crude's breach of contract and declaratory judgment claims. The court issued a memorandum opinion authored by Justice Peña, with the panel also including Justices Longoria and Silva. The appellate court reversed and rendered in part and reversed and remanded in part, finding error in …

Joint Operating Agreement South Texas Working Interest AAPL Form Operator Duties
Lease Litigation

Fifth Circuit Enforces Mutual Waiver of Consequential Damages in Offshore Drilling Contract Despite Gross Negligence Claims

Joel Reese | Jul 06, 2026

… any invoices for work performed between August and December 2023, prompting ENSCO's breach of contract action in February 2024. The Consequential Damages Dispute Cantium counterclaimed for over $22.8 million for loss of the Kings Hill well and more than $4.5 million in other costs including spread costs, alleging ENSCO's gross negligence and willful …

Fifth Circuit Offshore Drilling Consequential Damages Gross Negligence Maritime Contract
Lease Litigation

Fifth Circuit Clarifies Insurance Floor and Ceiling in Oilfield Mutual Indemnity Agreements Under TOAIA

Joel Reese | Jul 06, 2026

… Triangle and Bell. Century, acting as Triangle's subrogee, then sued Colgate for breach of contract , seeking reimbursement of the $5 million it paid toward the Miller settlement. The central question was whether Colgate's obligation to indemnify Triangle was limited to $5 million under the MSA, or whether Triangle could access Colgate's $75 million excess liability …

Fifth Circuit TOAIA Mutual Indemnity Master Service Agreement Oilfield Insurance
Lease Litigation

Eastland Court Enforces Right of First Refusal for Saltwater Disposal Wells in Surface Use Agreement

Joel Reese | Jul 06, 2026

… owners the opportunity to host the wells, the surface owners sued for breach of contract . Following a jury trial in the 118th District Court of Howard County, the jury awarded damages to the surface owners, and the trial court entered judgment including attorney's fees. The Contractual Dispute The central issue on appeal was whether SM …

Right of First Refusal Surface Damage Texas Court of Appeals Surface Use Agreement Saltwater Disposal
Lease Litigation

Eastland Court Affirms Summary Judgment on Fraud Claim Where Lease Terms Contradicted Alleged Oral Drilling Commitments

Joel Reese | Jul 06, 2026

… E&P, LLC and Diamondback O&G, LLC, asserting claims for fraud, breach of contract , bad faith pooling, accounting of profits, and declaratory judgment. The dispute centered on the assignment of interests in oil and gas agreements, with landowners alleging that Diamondback made oral representations that it would timely drill horizontal wells on certain pads …

Surface Damage Paid-Up Lease Expert Testimony Fraud Justifiable Reliance
Title Disputes

Eighth Court Holds Post-Closing Corrective Assignments Unenforceable Against BFP in Reeves County Overriding Royalty Dispute

Joel Reese | Jul 06, 2026

… quiet title in its royalty interests and recover unpaid royalties, later adding breach of contract and declaratory judgment claims. Both parties filed cross-motions for summary judgment on whether the corrected assignments were enforceable against Callon, who asserted bona fide purchaser status. The trial court ruled in KWF's favor, entering final judgment that the corrected …

Overriding Royalty Interest Reeves County Bona Fide Purchaser Scrivener's Error Net Revenue Interest
Lease Litigation

El Paso Court Clarifies Retained-Acreage Clause as Covenant, Not Special Limitation, in Permian Lease Dispute

Joel Reese | Jul 06, 2026

… and prevented termination, while also alleging tortious interference. Point Energy counterclaimed for breach of contract , asserting its own rights under the lease. The case has traveled a circuitous procedural path. After the 143rd District Court in Loving County granted some summary judgment motions and denied others, the parties filed an interlocutory appeal. The El Paso …

Permian Basin Special Limitation Retained Acreage Clause Horizontal Drilling Quasi-Estoppel
Title Disputes

Eastland Court Clarifies Property Description Requirements and Depth Limitation Construction in ORRI Assignment Dispute

Joel Reese | Jul 06, 2026

… allegedly wrongly received, while Cass also brought cross-claims against RIM for breach of contract , conversion, fraud, and trespass. Additional parties intervened, claiming ownership of certain mineral and royalty interests that Cass had purportedly conveyed to their predecessor-in-interest. The 238th District Court in Midland County granted partial summary judgment in favor of Cass …

Title Disputes Statute of Frauds ORRI Property Description Depth Limitations
Lease Litigation

Fifth Circuit Clarifies Force Majeure Obligations and Allocation Practices in Natural Gas Marketing Contracts After Winter Storm

Joel Reese | Jul 06, 2026

… quantities of natural gas during a severe winter storm. Mieco counterclaimed for breach of contract . The district court granted Targa partial summary judgment on the force majeure defense and, after a jury trial on separate pricing and allocation issues under two other contracts, entered judgment following denial of Targa's motion for judgment as a matter …

Force Majeure Winter Storm Uri Natural Gas Marketing Fifth Circuit Usage of Trade
Pipeline & Easement

Texas Business Court to Rule on $432.7M Midstream Breach Claim Turning on Pass-Through Entity Damages Allocation

Joel Reese | Jul 06, 2026

… and conspiracy claims against Kinetik CEO Jamie Welch, narrowing the case to breach of contract claims against the corporate defendants. Procedural Posture The bench trial concluded on June 2, 2026, before the Texas Business Court. The case now awaits Judge Dorfman's findings of fact and conclusions of law on both liability and damages. The trial …

Texas Business Court Midstream Transportation Contract Damages Y-Grade NGL Corporate Structure Defense