Federal Litigation Update: Executive Order 14008
On June 15, 2021, the United States District Court for the Western District of Louisiana granted a nationwide preliminary injunction in favor of Louisiana and twelve other states which halted enforcement of the Biden administration’s prohibition on oil and gas leases on public lands and water memorialized in Section 208 of Executive Order 14008 (“E.O. 14008”). The court does not normally favor nationwide injunctions but found necessity in the interest of uniformity—government lease sales affect public lands and offshore waters countrywide. ... Read More
Legislative Update: Texas SB 45 & HB 21
Texas SB 45 & HB 21 were signed into law in May and June this year by Governor Abbott, each effective September 1, 2021. This legislation broadly redefines sexual harassment in the workplace by expanding employee protection, broadening employer liability and extending filing deadlines. The legislation is a significant shift from previous laws governing sexual harassment claims, and employers should be sure to familiarize themselves with the new laws and enact... Read More
Legislative Update: Texas SB 13
Earlier this year, the General Land Office (“GLO”) created the Texas Defense Task Force (more on that here) to defend state land rights and combat federal policies that threaten the Texas oil and gas industry. The Task Force is just one of the ways that the Texas government is working to protect the state’s energy economy – the state continues to implement other measures to support the oil and gas industry. In January, prior to the formation of... Read More
Legislative Update: Texas’ Pandemic Liability Protection Act (PLPA)
On June 14, 2021, Governor Abbott signed the Pandemic Liability Protection Act (“PLPA”) into law, effective immediately. The PLPA protects businesses from liability for claims arising from exposure to SARS-CoV-2 (COVID-19)—including claims made by employees—and applies retroactively to all unadjudicated claims commenced on or after March 13, 2020. The act will remain in effect until such time as any disaster declaration relating to the pandemic is terminated. ... Read More
Legislative Update: SB 1259
On May 24, 2021, Governor Abbott signed SB 1259 into law, effective immediately. The bill was introduced by the state legislature in response to the Texas Supreme Court’s 2017 decision in ConocoPhillips v. Koopmann, in which the Court held that the Texas division order statute did not prevent a royalty owner from bringing a common law breach of contract claim against a... Read More
Caselaw Update: Royalty Checks and Implied Ratification
Under contract law generally, a party who has not expressly accepted an agreement can nevertheless be deemed to have impliedly accepted, or ratified it, by their actions. For example, a party may imply their acceptance of a contract by accepting the benefits they would receive under its terms. This principle also translates to oil and gas agreements. In Hooks v Samson Lone Star, the Texas Supreme Court held that a lessor’s acceptance of... Read More
Lease Washouts
Lease washouts occur when operators release or allow a current lease to expire in order to get a “clean slate.” These “clean slates” take the form of a new lease that may increase net revenue interest (NRI) and/or do away with undesirable prior lease burdens and provisions. Not only is lease washout permissible in Texas, but it is usually given great deference by Texas courts. It may seem perplexing to some that an operator can intentionally washout lease burdens such as an overriding royalty interest (ORRI) or... Read More
Hey! That’s Not Yours! Collecting on Liens and Judgments: Part 3
Mineral Liens In Parts 1 and 2 of this series, we considered the tools available to enforce judgments in Texas, as well as the ways in which a foreign judgment may be domesticated and enforced in the state. In our final installment, we will consider the mineral lien: a method by which a mineral contractor or subcontractor can collect... Read More
Hey! That’s Not Yours! Collecting on Liens and Judgments: Part 2
Domesticating Foreign Judgments In Part 1 of this series, we covered some of the tools available to judgment-creditors in Texas seeking to enforce and collect a money judgment. What if you obtain a judgment in another state? Once the foreign judgment has been domesticated, the judgment creditor can use any method of collection or enforcement applicable to a Texas judgment. ... Read More
Hey! That’s Not Yours! Collecting on Liens and Judgments Part 1
Part 1: Enforcing Judgments in Texas So you’ve successfully obtained a judgment against a debtor. Now what? After investigating and locating the debtor’s assets via formal discovery or informal methods like database searches, a judgment-creditor can develop a plan for enforcement and collection. There are several tools a judgment-creditor can employ to collect on a judgment. Absent an agreement for payment between the judgment-creditor and... Read More