April 7, 2016

ASSOCIATION OF LEASE AND TITLE ANALYSTS ANNUAL SCHOLARSHIP FUNDRAISING RAFFLE

SUPPORT OUR STUDENTS ASSOCIATION OF LEASE AND TITLE ANALYSTS ANNUAL SCHOLARSHIP FUNDRAISING RAFFLE Prizes Included A-1-$500.00 in Cash ( Donated by ALTA) A-2 CPLTA Manual & Review Class $225.00 (Donated by NALTA) A-3 UHD Online Land Class Value $550.00 ( Donated by Terrill Williams) A-4 FirePit Basket filled with Goodies $200.00 (Donated by the Staff @ P&P Land) A-5 & A-6 Galveston Beach chair and tote with Goodies (Donated by

TEXAS COURT: LESSEE MAY NOT EXCLUDE OTHER LESSEES FROM CONSTRUCTING SURFACE FACILITIES OR DRILLING THROUGH MINERAL ESTATE

BY: Chris Halgren from OilandGasLawDigest.com The San Antonio Court of Appeals, in Lightning Oil Co. v. Anadarko E&P Onshore, LLC, [1] held that a Texas oil and gas lease does not inherently convey a right for the lessee to control the “subterranean structures” from which hydrocarbons may be produced.  As a result, the court held that the mineral lessee of a severed mineral estate did not have the right to exclude third-parties from

CASE LAW UPDATE: CONOCOPHILLIPS MUST RELEASE 15K ACRES

BY: Austin Brister from OilandGasLawDigest.com Texas Case Law Update: On August 5, 2015, the San Antonio Court of Appeals released its opinion inConocoPhillips Company v. Vaquillas Unproven Minerals, Ltd., [1] affirming the trial court’s order declaring ConocoPhillips breached two oil and gas leases in Webb County by failing to release all acreage in excess of 40 acres for each producing and shut-in natural gas well capable of producing in paying quantities. As a

TX SUPREME COURT: CHESAPEAKE MAY NOT DEDUCT POSTPRODUCTION COSTS FROM OVERRIDING ROYALTY

BY: Austin Brister from OilandGasLawDigest.com In a 5-4 decision, the Texas Supreme Court issued its opinion in Chesapeake Exploration, L.L.C. v. Hyder, 14-0302, 2015 WL 3653446 (Tex. June 12, 2015), holding that Chesapeake is prohibited from deducting postproduction costs from an “overriding royalty interest” described in a lease. The Majority noted that while overriding royalty interests are generally subject to post production costs, the language used in the lease creating the Hyder overriding

ANATOMY OF A JOINT OPERATING AGREEMENT

BY: Austin Brister from OilandGasLawDigest.com In Introduction to Joint Operating Agreements, we reviewed several of the critical roles the Joint Operating Agreement plays within the oil and gas industry.  One of the first steps to understanding the JOA is to understand the anatomy of its several components. The AAPL Joint Operating Agreement is organized into the following sections… Read More

INTRODUCTION TO JOINT OPERATING AGREEMENTS

The joint operating agreement (“JOA”) is the most commonly used instrument in the oil and gas industry, surpassed only by the oil and gas lease. [1]   A JOA provides the contractual basis for the cooperative exploration, development, and production of oil and gas properties among multiple leasehold cotenants. [2]  By and large, the most commonly used JOA form is the “Form 610,” curated and published by the American Association of

WYOMING: CAN LESSEES POOL OVERRIDING ROYALTY INTERESTS?

BY: Austin Brister from OilandGasLawDigest.com There is a debate among Wyoming oil and gas attorneys, and I wanted to weigh in.  Some (maybe even many) Wyoming lawyers believe an overriding royalty interest simply cannot be pooled in Wyoming without the owner’s direct and express consent. Of course, this is only a debate in the context of voluntary pooling.  However, I believe this issue is, at best, unsettled.  I’d love to hear your thoughts in

FARMOUT AGREEMENTS: KEY DECISIONS AND NEGOTIATION POINTS

As I stated in my Part One of my Farmout Agreement Series, farmout agreements can be somewhat less “straight-forward” than other common oil and gas agreements.  Contracts, Leases, JOA’s, for example, are each highly standardized and have one or more publishers of highly-adopted forms.  Farmout Agreements, on the other hand, range from mere one-page letter agreements to highly formalized and lengthy contracts, prepared and negotiated over several rounds of back

NON-PARTICIPATING ROYALTY INTERESTS – A SIMPLE CONCEPT WITH COMPLEX RULES

BY: Austin Brister from OilandGasLawDigest.com I had an excellent time this week presenting to the Houston Association of Lease and Title Analysts on February 25, 2014, at the Houston Petroleum Club.  It was a great turnout, as I believe we had almost 250 attendees.  We covered the basics of NPRI’s, before diving into some of the more complex resulting rules, such as ratification, community leasing, and some complications created by Horizontal Drilling.