Oil & Gas Litigation Analysis

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Royalty Disputes

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

Joel Reese | Jul 06, 2026

… later assigned rights to his son, Ralph Lee Ross, in 2002. The Royalty Underpayment Dispute From 1994 to 1997, Shell paid royalties on the Lease Wells based on an "arbitrary price" rather than third-party sales prices as required by the lease—a mistake Shell admitted at trial but could not explain. For the Unit …

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

Texas Supreme Court Carves Out Unjust Enrichment Exception to Division Order Estoppel Rule

Joel Reese | Jul 06, 2026

… naming Strata as operator responsible for disbursing all royalties from production. The Royalty Underpayment Strata hired an attorney to perform a title examination, who erroneously informed Strata that the Gavendas were collectively entitled to a 1/16th royalty rather than the actual 1/2 royalty reserved in the deed. Following this erroneous title opinion, Strata …

Texas Supreme Court Royalty Owner Unjust Enrichment Division Orders Title Opinion
Royalty Disputes

Corpus Christi Court Reverses $15.8 Million Royalty Judgment in DeWitt County Lease Interpretation Dispute Over Valuation Point and Post-Production Costs

Joel Reese | Jul 20, 2026

The Corpus Christi Court of Appeals reversed a $15.8 million royalty underpayment judgment against Devon Energy and BPX Operating involving 110 oil wells across 3,700 acres in DeWitt County, holding the trial court erred in its lease construction that royalties were not valued "at the well" and that lessors bore no post-production …

Post-Production Costs Lease Interpretation At the Well Valuation Cost-Free Royalty DeWitt County
Royalty Disputes

Tenth Circuit Preserves District Court Discretion to Exceed 30% Fee Guideline in Oklahoma Royalty Class Actions

Joel Reese | Jun 25, 2026

Background Chieftain Royalty Company brought a class action against EnerVest Energy Institutional Fund XIII-A, L.P., alleging systematic underpayment of royalties to Oklahoma mineral interest owners. The case resulted in a $52 million settlement fund, from which class counsel sought attorneys' fees. The district court awarded $17.3 million—precisely one-third of the …

Royalty Interest Oklahoma Class Action Attorneys' Fees Common Fund
Royalty Disputes

Oklahoma Supreme Court Bars Post-Production Deductions on Affiliate Wellhead Sales Under Gross Proceeds Act

Joel Reese | Jul 06, 2026

… 6-3 that Devon Energy's deduction of gathering and compression costs from royalty payments across 14,000 STACK play wells violated the state's 2015 Gross Proceeds Act, exposing Devon to $890 million in underpayment claims. The decision turns on whether gas sold to Devon's midstream affiliate constitutes a sale at the wellhead under Oklahoma's statutory …

Market Value at the Well Royalty Interest Post-Production Costs STACK Play Gross Proceeds
Royalty Disputes

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

Joel Reese | Jul 20, 2026

… produced, saved, or sold from wells on the premises. Bluebeck's complaint alleges underpayment of these royalties through various schemes involving affiliate transactions with sister company SES and improper cost deductions. The Court's Ruling The Court granted the Individual Defendants' Motion to Dismiss in full, dismissing all claims against the six individual officers. The Court granted …

Post-Production Costs Royalty Calculation Marcellus Shale Affiliate Sales RICO
Title Disputes

Texas Fourth Court Resolves Century-Old Deed Ambiguity: Fixed NPRI vs. Floating Mineral Interest in Webb County Ranch

Joel Reese | Jul 20, 2026

… a mineral interest rather than an NPRI. The 2.59% differential in royalty calculations over decades likely resulted in substantial overpayments to the Esperanza Successors and corresponding underpayments to the Garner-chain successors. For operators, the case underscores the importance of periodic title review, particularly when acquiring producing properties with long production histories. The court's …

Presumed-Grant Doctrine Mineral Interest Title Disputes NPRI Webb County
Royalty Disputes

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

Joel Reese | Jul 06, 2026

… Permian's disposal assets. The RA required quarterly accounting and reimbursement for any underpayment of royalties . The Jurisdictional Dispute Black Mountain filed suit in the 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 …

Permian Basin Midstream Saltwater Disposal Business Court Jurisdiction Amount in Controversy
Royalty Disputes

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

Joel Reese | Jul 06, 2026

… January 2018, Ovintiv mistakenly adjusted gas flow on several properties, resulting in underpayments to some royalty owners and overpayments to others. The Richters were among those overpaid during this period, which predated the transfer to the plaintiff entities. Ovintiv did not discover the error until January 2018. On June 26, 2018, Ovintiv informed the plaintiffs …

Royalty Owner Unjust Enrichment Fifth Circuit Equitable Recoupment Eagle Ford