Chapter 5 Case Law Update

• Jurisdiction: United States

Chapter 5 Case Law Update

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William B. BurfordKelly Hart & Hallman LLPMidland, TX

WILLIAM B. BURFORD is a partner in the Midland, Texas, office of Kelly Hart & Hallman LLP. He received a Bachelor of Science degree in geology from the University of Texas at Austin in 1975, and is a 1978 graduate of the University of Texas Law School, where he was a member of the Texas Law Review. He has practiced in Midland since his graduation, primarily in the area of oil and gas title and transactional matters. He has served, since its inception, on the editorial board for the development of title examination standards established by the Real Property, Probate and Trust Law and Oil, Gas and Energy Resources Law Sections of the State Bar of Texas. He currently serves as the Texas reporter for the quarterly Mineral and Energy Law Newsletter published by the Foundation for Natural Resources and Energy Law (formerly the Rocky Mountain Mineral Law Foundation) and is a past chair of the State Bar Oil, Gas and Energy Resources Law Section.

I. INTRODUCTION

II. OIL AND GAS TITLES AND CONVEYANCING

A. Conveyancing Generally

Trial v. Dragon, No. 593 S.W.3d 313 (Tex. 2019)

Brooke-Willbanks v. Flatland Mineral Fund, LP, 660 S.W.3d 559 (Tex. App.—Eastland Jan. 12, 2023, no pet. h.)

Devon Energy Production Co., L.P. v. Enplat II, LLC, No. 08-00217-CV, 2023 WL 362014 (Tex. App.—El Paso Jan. 23, 2023, no pet. h.)

B. Express and Implied Exceptions and Reservations

Perryman v. Spartan Texas Six Capital Partners, Ltd., 546 S.W.3d 110 (Tex. 2018)

ConocoPhillips Co. v. Ramirez, 599 S.W.3d 296 (Tex. 2020)

Armour Pipe Line Co. v. Sandel Energy, Inc., No. 14-20-00412-CV, 2022 WL 4542049 (Tex. App.—Houston [14th Dist.] Sept. 29, 2022, no pet. h.)

Ross v. Flower, No. 03-19-00516-CV, 2021 WL 904864 (Tex. App.—Austin Mar. 10, 2021, no pet.) (mem. op.)

Gonzalez v. Janssen, 553 S.W.3d 633 (Tex. App.—San Antonio 2018, pet. denied)

Barrow Shaver Resources Co. LLC v. NETX Acquisitions, LLC, No. 06-20-00081-CV, 2021 WL 3571394 (Tex. App.—Texarkana Aug. 13, 2021, pet. denied) (mem. op.)

Rahlek, Ltd. v. Wells, 587 S.W.3d 57 (Tex. App.—Eastland 2019, pet. denied)

WTX Fund, LLC v. Brown, 595 S.W. 3d 285 (Tex. App.—El Paso, no pet. denied)

C. Conveyances and Reservations of Fractions of 1/8

U.S. Shale Energy II, LLC v. Laborde Properties, L.P., 551 S.W.3d 148 (Tex. 2018)

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Van Dyke v. Navigator Group, No. 21-0146, 2023 WL 2053175 (Tex. Feb. 17, 2023)

Hoffman v. Thomson, 630 S.W.3d 427 (Tex. App.—San Antonio 2021, pet. filed)

Five Star Royalty Partners, Ltd. v. Mauldin, 973 F.3d 367 (5th Cir. 2020)

Bridges v. Uhl, No. 08-21-00130-CV, 2022 WL 17985705 (Tex. App.—El Paso Dec. 29, 2022, no pet. h.)

Royalty Asset Holdings II, LP v. Bayswater Fund III-A, LLC, No. 08-22-00108-CV, 2023 WL 2533169 (Tex. App.—El Paso Mar. 15, 2023, no pet. h.) (mem. op.)

D. Title Curative and Correction Instruments

Concho Resources, Inc. v. Ellison, 627 S.W.3d 226 (Tex. 2021)

Broadway National Bank v. Yates Energy Corp., 631 S.W.3d 16 (Tex. 2021)

Endeavor Energy Resources, L.P. v. Trudy Jane Anderson Testamentary Trust, 644 S.W.3d 212 (Tex. App.—Eastland 2022, pet. denied)

E. Lease Assignments

Piranha Partners v. Neuhoff, 596 S.W.3d 740 (Tex. 2020)

Citation 2002 Investment LLC v. Occidental Permian, Ltd., No. 08-21-00029-CV, 2022 WL 17850986 (Tex. App.—El Paso Dec. 22, 2022, pet. filed)

Posse Energy, Ltd. v. Parsley Energy, LP, 632 S.W.3d 677 (Tex. App.—El Paso 2021, pet. denied)

F. Rule Against Perpetuities

ConocoPhillips Co. v. Koopmann, 547 S.W.3d 858 (Tex. 2018)

Yowell v. Granite Operating Co., 620 S.W.3d 794 (Tex. 2020)

Yowell v. Granite Operating Co., 630 S.W.3d 566 (Tex. App.—Amarillo 2021, pet. denied)

G. Strips and Gores

Crawford v. XTO Energy, Inc., No. 02-18-00217-CV, 2019 WL 6904298 (Tex. App.—Fort Worth December 19, 2019, pet. filed) (mem. op.)

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Greer v. Chesapeake Exploration, L.L.C., No. 02-17-00405-CV, 2018 WL 6565790 (Tex. App.—Fort Worth Dec. 13, 2018, no pet.) (mem. op.)

III. OIL AND GAS CONTRACT LAW

JPMorgan Chase Bank v. Orca Assets G.P., L.L.C., 546 S.W.3d 648 (Tex. 2018) 32

Carrizo Oil & Gas, Inc. v. Barrow-Shaver Resources Co., 590 S.W.3d 471 (Tex. 2019)

Energy Transfer Partners, L.P. v. Enterprise Products Partners, L.P., 593 S.W.3d 732 (Tex. 2020)

Chalker Energy Partners III, LLC v. Le Norman Operating, LLC, 595 S.W.3d 668 (Tex. 2020)

MJR Oil & Gas 2001 LLC v. AriesOne, LP, 558 S.W.3d 692 (Tex. App.—Texarkana 2018, no pet.)

TEC Olmos, LLC v. ConocoPhillips Co., 555 S.W.3d 176 (Tex. App.—Houston [1st Dist.] 2018, pet. denied)

Eagle Oil & Gas Co. v. Shale Exploration, LLC, 549 S.W.3d 256 (Tex. App.—Houston [1st Dist.] 2018, pet. dism'd)

IV. OIL AND GAS LEASES AND LEASING

Endeavor Energy Resources, L.P. v. Discovery Operating, Inc., 554 S.W.3d 586 (Tex. 2018)

XOG Operating, LLC v. Chesapeake Exploration Limited Partnership, 554 S.W.3d 607 (Tex. 2018)

TRO-X, L.P. v. Anadarko Petroleum Corp., 548 S.W.3d 458 (Tex. 2018)

Endeavor Energy Res., L.P. v. Energen Res. Corp., 615 S.W.3d 144 (Tex. 2020)

Murphy Exploration & Production Co.-USA v. Adams, 560 S.W.3d 105 (Tex. 2018)

Rosetta Resources Operating, LP v. Martin, 645 S.W.3d 212 (Tex. 2022)

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Sundown Energy LP v. HJSA No. 3 Limited Partnership, 622 S.W.3d 884 (Tex. 2021) (per curiam)

PPC Acquisition Co., LLC v. Delaware Basin Resources, LLC, 619 S.W.3d 338 (Tex. App.—El Paso Feb. 19, 2021, no pet.)

Tier 1 Resources Partners v. Delaware Basin Resources LLC, 633 S.W.3d 730 (Tex. App.—El Paso 2021, pet. dism'd)

MRC Permian Co. v. Point Energy Partners Permian LLC, 624 S.W.3d 643 (Tex. App.—El Paso 2021, pet. granted)

Thistle Creek Ranch, LLC v. Ironroc Energy Partners, LLC, No. 14-20-00347-CV, 2022 WL 1310957 (Tex. App.—Houston [14th Dist.] May 3, 2022 no pet.) (mem. op.)

King Operating Corp. v. Double Eagle Andrews, LLC, 634 S.W.3d 483 (Tex. App.—Eastland Oct. 7, 2021, no pet.)

Bell v. Chesapeake Energy Corp., No. 04-18-00129-CV, 2019 WL 1139584 (Tex. App.—San Antonio Mar. 13, 2019, pet. denied) (mem. op.)

V. EXECUTIVE RIGHTS

Texas Outfitters Limited, LLC v. Nicholson, 572 S.W.3d 647 (Tex. 2019)

VI. ROYALTY CALCULATION AND PAYMENT

Burlington Resources Oil & Gas Co. LP v. Texas Crude Energy, LLC, 573 S.W.3d 198, (Tex. 2019)

BlueStone Natural Resources II, LLC v. Randle, 620 S.W.3d 380 (Tex. 2021)

Nettye Engler Energy, LP v. BlueStone Natural Resources II, LLC, 639 S.W.3d 682, (Tex. 2022)

Devon Energy Production Co. v. Sheppard, No. 20-0904, 66 Tex Sup. Ct. J. 421, 2023 WL 2438927 (Tex. Mar. 10, 2023)

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Shirlaine West Properties Limited v. Jamestown Resources, L.L.C., No. 02-18-00424-CV, 2021 WL 5367849 (Tex. App.—Fort Worth Nov. 18, 2021, pet. filed) (mem. op.)

EnerVest Operating, LLC v. Mayfield, No. 04-21-00337-CV, 2022 WL 4492785 (Tex. App.—San Antonio Sept. 28, 2022, no pet.) (mem. op.)

Samson Exploration, LLC v. Bordages, No. 09-20-00174-CV, 2022 WL 120004 (Tex. App.—Beaumont Jan. 13, 2022, pet. filed)

Anderson Living Trust v. Energen Resources Corp., 886 F.3d 826 (10th Cir. 2018)

VII. POOLING AND UNITIZATION

BPX Operating Co. v. Strickhausen, 629 S.W.3d 189 (Tex. 2021)

VIII. OPERATING AGREEMENTS

OBO, Inc. v. Apache Corp., No. 14-17-00170-CV, 2018 WL 4997183 (Tex. App.— Houston [14th Dist.] Oct. 16, 2018, no pet.)

Crimson Exploration Operating, Inc. v. BPX Operating Co., No. 14-20-00070-CV, 2021 WL 786541 (Tex. Civ. App.—Houston [14th Dist.] Mar. 2, 2021, pet. denied) (mem. op.)

Apache Corp. v. Castex Offshore, Inc., 626 S.W.3d 371 (Tex. App.—Houston [14th Dist.] 2021, pet. denied)

Enduro Operating LLC v. Echo Production, Inc., 413 P.3d 866 (N.M. 2018)

IX. OIL AND GAS LIENS

Mesa Southern CWS Acquisition, LP v. Deep Energy Exploration Partners, LLC, No. 14-18-00708-CV, 2019 WL 6210213 (Tex. App.—Houston [14th Dist.] Nov. 21, 2019, no pet.) (mem. op.)

ELG Oil, LLC v. Stranco Services, LLC, No. 04-19-00088-CV, 2019 WL 5030260 (Tex. App.—San Antonio Oct. 9, 2019, no pet.) (mem. op.)

Pearl Resources Operating Co. v. Transcon Capital, LLC, 641 S.W.3d 851 (Tex. App.—El Paso 2022, no pet.)

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Platinum Energy Solutions, Inc. v. Lazarus Operating LLC, No. 13-20-00279-CV, 2022 WL 120151 (Tex. App.—Corpus Christi-Edinburg Jan. 13, 2022, no pet. h.) (mem. op.)

X. OIL AND GAS TAXATION AND REGULATION

Ammonite Oil & Gas Corp. v. Railroad Commission, No. 04-20-00465-CV, 2021 WL 4976324 (Tex. App.—San Antonio Oct. 27, 2021, pet. filed) (mem. op.)

XI. TORT LIABILTY AND INDEMNITY

North American Tubular Services, LLC v. BOPCO, L.P., No. 02-17-00352, 2018 WL 4140635 (Tex. App.—Fort Worth Aug. 30, 2018, no pet.) (mem. op.)

Cannon Oil & Gas Well Services, Inc. v. KLX Energy Services, L.L.C., 20 F.4th 184 (5th Cir. 2021)

XII. JURISDICTION, VENUE, AND TRIAL PROCEDURE

Wadi Petroleum, Inc. v. Miller, No. 13-21-00014-CV, 2021 WL 4466320 (Tex. App.—Corpus Christi-Edinburg Sept. 30, 2021, pet. denied) (mem. op.)

Baywater Drilling, LLC v. Ratliff, No. 01-19-00706-CV, 2020 WL 3422207 (Tex. App.—Houston [1st Dist.] June 23, 2020, no pet.) (mem. op.)

Devon Energy Corp. v. Moreno, No. 01-21-00084-CV, 2022 WL 547641 (Tex. App.—Houston [1st Dist.] Fed. 24, 2022, no pet. h.) (mem. op.)

In re EOG Resources, Inc., No. 12-18-00054-CV, 2018 WL 3197612 (Tex. App.—Tyler June 29, 2018, orig. proceeding) (mem. op.)

SM Energy Co. v. Union Pacific Railroad Co., 652 S.W.2d 830 (Tex. App.—Eastland 2022, pet. filed)

In re Brooks, No. 14-22-00720-CV, 2023 WL 139185 (Tex. App.—Houston [14th Dist.] Jan. 10, 2023, orig. proceeding) (per curiam) (mem. op.)

M & M Resources, Inc. v. DSTJ, LLP, 564 S.W.3d 446 (Tex. App.—Beaumont 2018, no pet.)

Lackey v. Templeton, No. 09-17-00183-CV, 2018 WL 3384570 (Tex. App.—Beaumont July 12, 2018, pet. denied) (mem. op.)

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XIII. LIMITATIONS AND LACHES

Carl M. Archer Trust No. Three v. Tregellas, 566 S.W.3d 281 (Tex. 2018)

Regency Field Services, LLC v. Swift Energy Operating, LLC, 622 S.W.3d 807

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