Shut-In Provisions: Maintaining Leasehold in a Low-Price Environment
The language of a shut-in royalty clause in an oil and gas lease is a “creature of contract” that determines when and how a lessee may shut-in... Read More
Texas’ First Purchaser Statute Only Has Teeth in Texas
This year, global oil markets experienced a significant surplus of supply over demand for oil, near-record domestic production and a global demand shock brought forth by the coronavirus containment measures. The imbalance between a... Read More
Inactive Wells: Will You Be Left Holding the Bag?
Non-operators may be left holding the bag when it comes to inactive wells. In some cases where an operator files for bankruptcy, Texas law states that non-operators may be responsible for plugging an inactive well. Failure to... Read More
Temporary Changes to the Debt Threshold and its Potential Effect on the Oil and Gas Industry
What is Sub-Chapter V? On August 23, 2019 President Trump signed into law the Small Business Reorganization Act of 2019 (“SBRA”), which... Read More