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Browning Oil Co. V. Luecke: Has Texas Illuminated A Dark Distinction Between Vertical And Horizontal Drilling., Stephen Taylor Dennis

St. Mary's Law Journal

Horizontal drilling technology continues to revitalize the oil and gas industry, however, many of the legal concepts governing oil and gas law have failed to keep pace. Recently, in Browning Oil Co. v. Luecke, the Third Court of Appeals of Texas dealt with the issue of whether an antidilution clause applied to both horizontal and vertical wells. The agreement between the parties did not contemplate the use of horizontal technology, however, the express language did not exclude horizontal technology. Because the agreement did not expressly exclude horizontal drilling, the court looked at the intent of the parties and ruled that …