Oil & Gas Blog

By Bryan J. May and Mark C. Matula  We have previously discussed shut-in, force majeure, continuous drilling, cessation of production, and commencement of operations lease provisions, which are known as lease savings clauses.  This brief note discusses production in paying quantities,… Read more

By Paul B. Westbrook and Shawna R. Rinehart A shut-in clause (or shut-in royalty clause) traditionally allows the lessee to maintain the lease by making shut-in payments on a well capable of producing oil or gas in paying quantities where the oil or gas cannot be marketed, whether due to a lack of… Read more

By Paul B. Westbrook and Shawna R. Rinehart Force Majeure Clause: A force majeure clause is a lease provision designed to protect a lessee against termination of the lease resulting from governmental actions, acts of God, and other circumstances beyond the lessee’s control. Force majeure clauses… Read more

By Paul B. Westbrook and Shawna R. Rinehart Continuous drilling clauses are very similar to, and often intertwined with, some of the savings clauses often included in leases (especially a commencement of operations clause and a cessation of production clause). One difference from a commencement of… Read more

By Paul B. Westbrook and Shawna R. Rinehart Cessation of Production: A cessation of production savings clause is primarily intended to prevent termination of the lease immediately upon the cessation of production, whether during the primary term, secondary term, or both. Certainly, the most… Read more

Savings Clauses Generally: A savings clause is any express lease provision that can be used to maintain the lease past its primary term in the absence of actual production on the lease premises. Where a dispute arises regarding the continuing validity of a lease, the plaintiff bears the burden of… Read more

On April 23, 2019, the U.S. Environmental Protection Agency published Management of Exploration, Development and Production Wastes: Factors Informing a Decision on the Need for Regulatory Action. The document was drafted and published, in part, in response to a Consent Decree entered by the U.S.… Read more

On November 20, 2018, the Supreme Court of Pennsylvania agreed to hear an appeal concerning the Pennsylvania Superior Court’s decision in a lawsuit that alleged trespass by hydraulic fracturing.  Specifically, the Pennsylvania Superior Court concluded that the “rule of capture does not… Read more

On November 16, 2018, President Donald Trump announced that he intends to nominate U.S. Environmental Protection Agency acting Administrator Andrew Wheeler to head the agency on a permanent basis.  If formally nominated, acting Administrator Wheeler’s nomination would be initially handled by… Read more

On July 26, 2017, the Supreme Court of Texas granted Denbury Green Pipeline-Texas, LLC’s motion for temporary relief, ordering a district court to allow Denbury to complete federally-required inspections of the pipeline at issue. On July 12, 2017, Denbury had filed a petition for writ of mandamus… Read more

On July 25, 2017, the DOI Bureau of Land Management published “Oil and Gas: Hydraulic Fracturing on Federal and Indian Lands: Rescission of a 2015 Rule” in the Federal Register. If finalized, the purposed rule would rescind BLM’s 2015 rule regulating hydraulic fracturing on certain public and… Read more

On July 20, 2017, four environmental groups filed five lawsuits in the U.S. District Court for the District of Columbia, alleging that EPA failed to prevent the Texas Commission on Environmental Quality from granting improper major source permits under the Clean Air Act to several petroleum… Read more

On July 6, 2017, U.S. Department of the Interior Secretary Ryan Zinke signed Order No. 3354, which is designed to ensure that DOI consistently holds quarterly oil and gas lease sales as required by the Mineral Leasing Act of 1920. Although the MLA requires quarterly lease sales “for each state… Read more

On June 28, 2017, the Trump Administration announced plans to nominate Richard Glick as a commissioner of the Federal Energy Regulatory Commission. Glick currently serves as Democratic general counsel on the Senate Energy and Natural Resources Committee and would replace Democratic Commissioner… Read more

On July 18, 2017, the Dallas Court of Appeals overturned a $535 million jury verdict related to breach of joint enterprise and breach of fiduciary duty causes of action. The plaintiff and defendant are pipeline companies that jointly investigated the economic feasibility of an oil pipeline that… Read more

On July 12, 2017, Denbury Green Pipeline-Texas, LLC filed a petition for writ of mandamus with the Texas Supreme Court, seeking immediate possession of a contested pipeline easement in Jefferson County, Texas. The District Court denied Denbury’s request for a temporary restraining order, finding… Read more

On July 17, 2017, the American Oil and Gas Reporter published “Texas Supreme Court Decision Clarifies Surface Estate Rights,” a Harris, Finley & Bogle analysis of three recent Texas Supreme Court decisions, Lightning Oil, Forest Oil, and Red Deer Resources. In Lightning Oil, the Texas… Read more

On June 15, 2017, the U.S. Department of the Interior, Bureau of Land Management, published a notice of postponement of compliance dates in the Federal Register for the final rule “Waste Prevention, Production Subject to Royalties, and Resource Conservation.” Immediately after BLM… Read more