El Paso Court of Appeals Grapples with Deed Interpretation Issue and Applies the Estate Misconception Theory – Petition for Review Timely Filed

May 5, 2020 — In WTX Fund, LLC v. Brown, 595 S.W.3d 285 (Tex. App.—El Paso 2020, pet. filed), the Eighth District Court of Appeals (the “Appellate Court”) addressed the question of whether a 1951 mineral deed reserved any incident of mineral ownership, and specifically a nonparticipating royalty interest.  In reversing the trial court’s judgment, the Appellate Court held that where a deed specifically conveyed leasing rights, bonuses, delay rentals and development rights, the inclusion of the “shall not affect” clause was a clear and specific reservation or exception of not only a nonparticipating royalty interest, but the entireright to…
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Utilizing Force Majeure Provisions to Preserve Oil and Gas Leases

April 30, 2020 — Risk allocation and protecting current assets is a primary concern for the oil and gas industry amid the economic impact of the COVID-19 pandemic. Download our latest white paper to learn how the application of the force majeure provision may perpetuate an oil and gas lease that may otherwise terminate due to a lack of operations or production.
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New Mexico Issues Emergency Rule for Shut-in Wells on State Land

April 22, 2020 — In response to the impact of the COVID-19 pandemic and foreign price wars, the New Mexico State Land Office (“NMSLO”) recently issued an Emergency Rule that allows oil producers to temporarily shut-in wells on state land without facing penalties.[1]  Specifically, the Emergency Rule allows lessees to apply to the NMSLO to shut-in wells while maintaining the terms of their lease for at least 30 days, with the possibility of an extension of up to 120 days.  To qualify for the emergency relief under the new Rule, lessees must satisfy that: There is at least one well…
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