Wyoming Supreme Court Finds That Commission Acted Arbitrarily and Capriciously in Denying a Drilling Unit

June 15, 2020 — In Exaro Energy III, LLC v. Wyo. Oil & Gas Conservation Comm'n, 455 P.3d 1243 (Wyo. 2020), the Supreme Court of Wyoming reviewed and reversed a decision rendered by the Wyoming Oil and Gas Conservation Commission (the “Commission”) regarding the approval of adjacent drilling and spacing units (“DSUs”) in the Jonah Field.  The Commission is given the broad authority to establish DSUs, and must follow appropriate agency standards when deciding whether or not to allow an operator to establish a DSU.  In this decision, the Supreme Court of Wyoming decided that the Commission’s denial of an…
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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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