Law Commons^™

The Texas Supreme Court's Evolving Mineral-Deed Jurisprudence In The Shale Era: The Implications Of Wenske V. Ealy, Laura H. Burney

Faculty Articles

The twenty-first century oil and gas boom in the Lone Star State stimulated the industry and enriched Texas landowners. However, the technologies credited with igniting this boom, hydraulic fracturing and horizontal drilling, could not prevent the historic boom-to-bust cycle. Instead, the production unleashed from shale plays in Texas and other states created a world-wide glut, sinking oil prices from highs above $100 to a low of $26 per barrel. Yet, thanks in part to plays in West Texas, "Shale 2.0" is underway. The booms have blessed and cursed Texas, leading to a variety of legal disputes. Disputes that have plagued …

The Legacy Of The 1/8th Landowner's Royalty And The Texas Supreme Court: Has Hysaw V. Dawkins Resolved The Double Fraction Dilemma, Laura H. Burney

Faculty Articles

Lawyers, landmen, landowners, and producers face a long list of perennial problems when interpreting or drafting documents that affect mineral estates. I have written extensively about these problems, including the "fixed or floating" non-participating royalty issue addressed in a recent Texas Supreme Court case, Hysaw v. Dawkins. In that case, three siblings, who were beneficiaries of their mother's will, disputed the appellate court's holding that the double fraction 1/3 of 1/8 created a "fixed" 1/24th non-participating royalty interest (NPRi), rather than a "floating" 1/3 NPRi. The dispute arose when one sibling leased her land and negotiated a 1/5th landowner's lease …

The Texas Supreme Court And Oil And Gas Jurisprudence: What Hath Wagner & Brown V. Sheppard Wrought?, Laura H. Burney

Faculty Articles

According to the Texas Supreme Court, a lessor’s interest remains pooled even after her lease terminates. The Court’s November 2008 opinion in Wagner & Brown, Ltd. v. Sheppard provoked strong reactions among oil and gas law practitioners, academics, and others involved in the industry. In fact, the court received nearly a dozen amicus curiae briefs signed by more than 20 attorneys—many of whom typically represent producers—urging it to reconsider. Not persuaded by these concerns, the court finalized its opinion on June 5, 2009. So now the question for players in the oil patch is: What hath Wagner & Brown, Ltd. …

Determining The Legal Ramifications Of Express Oil And Gas Lease Provisions: Do The Rules Of Document Interpretation Provide Predictability?, Laura H. Burney

Faculty CLE

The oil and gas lease has served as the basic contract for the petroleum industry since 1853. Throughout the decades, the “typical” oil and gas lease clauses have been developed and revised in response to judicial decisions. To provide an update on the evolution of today’s oil and gas lease, it is necessary to review selected court decisions construing lease clauses.

Theoretically, the rules of document interpretation should provide a reliable guide when courts are asked to determine the legal ramifications of express lease provisions. However, review of relevant cases, including recent decisions and older cases providing unique lessons about …