Oil, Gas, and Mineral Law Commons^™

Montana, Stephen R. Brown

Texas A&M Journal of Property Law

In 2019, Montana produced nearly twenty-three million barrels of crude oil, up slightly from its 2018 production, and 48.5 million cubic feet of natural gas. Through mid-2020, both crude oil and natural gas production declined by more than 25% when compared to the same period in 2012.

Alaska, George R. Lyle, Adam D. Harki, Traci N. Bunkers

Texas A&M Journal of Property Law

The Alaska State Legislature was scheduled to convene its Second Regular Session of the Thirty-First Legislative Session from January 21, 2020, through May 20, 2020. However, on March 29, 2020, the Alaska State Legislature, like other state legislatures, suspended its session effective immediately, in response to the coronavirus pandemic (“COVID-19”). While the suspension was initially continued through May 18, 2020, the Alaska Legislature formally adjourned on May 20, 2020. Given the adjournment, the legislature did not pass any substantive oil and gas legislation.

Pennsylvania, Michael K. Reer, Valerie Antonette

Texas A&M Journal of Property Law

According to the U.S. Energy Information Administration, Pennsylvania ranked second among states in production of natural gas in 2018, contributing nearly seven trillion cubic feet. Although the number of unconventional permit applications received by the Pennsylvania Department of Environmental Protection (“PADEP”) remains relatively robust, the number of unconventional well applications continues to decline from the peak of 3,182 received in 2014.3 In 2019, PADEP received 1,475 unconventional permit applications, as compared to 1,868 in 2018 and 2,028 in 2017.

California Community Choice Aggregation Law & Regulation, Ryan M. F. Baron, Glen Price, Benjamin Bodell

Texas A&M Journal of Property Law

The purpose of this special topic is to provide a summary of the laws and regulations associated with the development of Community Choice Aggregation (“CCA”) in California and the growing impact of CCA in the California energy market.

Federal Legal And Regulatory Developments Relating To The U.S. Pipeline Industry, Chloe J. Marie, Ross Pifer

Texas A&M Journal of Property Law

The Atlantic Coast Pipeline (“ACP”) was designed as a 600-mile underground, pipeline project transporting natural gas from well sites in West Virginia to end users throughout Virginia and North Carolina. Atlantic Coast Pipeline, LLC (“Atlantic Coast”), the developer of the ACP project, began the extensive process of obtaining the necessary regulatory approvals for this project by initiating a pre-filing process with the Federal Energy Regulatory Commission (“FERC”) in October 2014. In the nearly six years that followed, the project received various permits related to water and air quality as well as other matters from state and federal agencies. At nearly …

When Drills And Pipelines Cross Indigenous Lands In The Americas, Guillermo J. Garcia Sanchez

Faculty Scholarship

From the Missouri River, passing through the Sonora Desert, all the way down to the Amazon Forest and the Andean Mountains, drills and pipelines are crossing over indigenous lands. In an energy-thirsty continent, there is no land left to spare, not even tribal land. Many of these energy infrastructure projects involve international investments that are protected by treaties and enforced by arbitral tribunals. At the same time, tribal communities have an internationally recognized right to receive prior and informed consultation before they are affected by projects of this nature. The Article focuses on the clash of rights between energy extraction …

Givens V. Mountain Valley Pipeline, Llc And The Unresolved Circuit Split, Karen Alday

Texas A&M Journal of Property Law

The natural gas industry is central to the United States economy. However, due to vague regulations and judicial leniency, natural gas pipeline companies have almost zero restraint in exercising eminent domain. Their current operations mirror that of the federal government’s authority to exercise immediate possession. Recently, landowners have contested the pipeline industry’s authority to exercise eminent domain, which has developed into a circuit split. The Fourth Circuit, and the six other circuits that have followed suit, hold that pipeline companies have the substantive right to immediate entry and are entitled to a preliminary injunction before a trial on just compensation. …

Pennsylvania--Recent Developments In Pennsylvania Jurisprudence Related To Oil And Gas Leasing And Conveyancing, Ross Pifer

Texas A&M Journal of Property Law

Pennsylvania is the largest producer of shale gas in the United States and is the second-largest natural gas-producing state overall. Owing to its strategic location atop the Marcellus and Utica Shale Formations, Pennsylvania’s position as a major natural gas producer is relatively new. Just a little over a decade ago, Pennsylvania ranked sixteenth among states in total natural gas production. With this rapid rise in the amount of natural gas development, there has been a corresponding increase in activity in courtrooms across Pennsylvania—both in state and federal courts. As a result, Pennsylvania oil and gas law has evolved within a …

Utah, Mark Burghardt

Texas A&M Journal of Property Law

Oil and gas production continues to be an important sector of Utah’s economy. Following a 25% loss in production between 2014 and 2015, Utah’s production continues to slowly rebound. Crude oil production in 2019 appears to be slightly ahead of 2018 production. Monthly production averages slightly over three million barrels, placing Utah among the top ten states in crude oil production. Along with the continuing increase in production, the state’s legal framework governing oil and gas continues to develop.

This Article examines recent changes in Utah statutes and regulations along with new case law developments involving the oil and gas …

Survey Of Selected 2019 Texas Oil And Gas Cases And Statutes, William D. Farrar

Texas A&M Journal of Property Law

Texas courts and the legislature were quite active in 2019 concerning oil and gas issues. Texas courts decided many cases involving everything from deed interpretation to lease repudiation to farmout interpretation. The Texas Supreme Court has granted several petitions for review from the courts of appeal. The legislature enacted or amended statutes concerning so called “royalty leases,” the Mineral Interest Pooling Act, and others. The following are summaries of some selected cases and statutes that will be of interest to those involved with Texas oil and gas law.

Subsurface Tension: The Conflicting Laws Of Texas And New Mexico Over Shared Groundwater And New Mexico’S Desire For Regulation, Kameron B. Smith

Texas A&M Law Review

A recent oil boom in Southern New Mexico has resulted in increased hydraulic fracturing operations in the region and, as a result, a steady and reliable supply of water to fuel such operations is required. As New Mexico regulations make it difficult to acquire a steady supply of water within the state, oil and natural gas producers are turning to unregulated areas in Texas, which permit unlimited pumping of groundwater. However, this groundwater is being pumped from the Pecos Valley aquifer, which is the same source of water that New Mexico is regulating within its borders. This issue is only …

New Challenges To Transboundary Unitization In The Gulf Of Mexico, Isaac Olson

Texas A&M Journal of Property Law

In the last two decades, the search for untapped oil reserves led to many innovations in oil and gas exploration. As new technology continues to open new horizons, oil companies are increasingly able to drill at deeper ocean depths to tap offshore reserves. Offshore drilling poses problems where oil reserves hundreds of miles from shore cross an international boundary line. While American courts typically apply the rule of capture to determine who owns the subsoil resources, international law requires countries to work together to maximize the efficient, safe extraction of the resources. In 2012, the United States and Mexico drafted …

Virginia, Mason Heidt

Texas A&M Journal of Property Law

This Article addresses developments in Virginia oil and gas law for the period from July 31, 2014 to July 31, 2019. This period is longer than normally addressed by this journal to capture important developments in the law between this update and the last Virginia update published in 2015. At the state level, in Swords Creek Land Partnership v. Belcher, the Supreme Court of Virginia concluded coalbed methane (“CBM”) is a separate and distinct mineral estate from coal. It held that the meaning of “coal” within an 1887 severance deed was unambiguous and did not intend to convey ownership rights …

Wyoming, Walter F. Eggers, Iii

Texas A&M Journal of Property Law

Wyoming currently ranks eighth nationally in both crude oil and natural gas production. In 2018, Wyoming produced 87.9 million barrels of crude oil, up from 75.7 million barrels in 2017. Wyoming produced 1.81 billion MCF (thousand cubic feet) of natural gas, increasing from 1.80 billion MCF produced in 2017.

A Comparative Analysis Of Texas And New Mexico Oil And Gas Laws From A Title Examiner's Perspective, Carly Hewett

Texas A&M Journal of Property Law

The statutory framework surrounding oil and gas law and the related title issues in Texas and New Mexico, while similar in many instances, do have some notable differences. New Mexico case law is very limited, which could be due to a variety of reasons, including a smaller state population and the fact that New Mexico and the United States own much of New Mexico’s oil and gas productive acreage. Therefore, practitioners often look to other jurisdictions, including Texas, for guidance. Texas’s secondary authority is also better developed with its own adopted title standards. New Mexico does not have such guidance. …

Come And Charge It: The Rise Of Utility-Scale Battery Energy Storage In Texas, Matthew A. Arth

Texas A&M Journal of Property Law

Affordable, reliable battery energy storage has long been the holy grail of the electric grid. From avoiding expensive transmission build-out to smoothing out fluctuations inherent to wind and solar resource output, batteries hold the promise of providing the solution to an ever more intermittent and distributed grid. Across the United States and particularly in Texas, that futuristic vision is beginning to approach reality as battery costs decline and favorable regulatory policy is implemented. This Article addresses the current state of battery energy storage system development and notes recent contributory policy developments at both the national and state level.

The Fight For Footprint: Energy Development And Competing Surface Use Issues, James D. Bradbury

Texas A&M Journal of Property Law

The laws surrounding energy development in Texas have evolved over the past century, as Texas has been at the epicenter of the energy industry—and thereby, the center of energy law—since oil was discovered in Corsicana in 1894. Domestic, and even some international choice-of-law clauses, choose Texas law due to the Lone Star State’s dominance in the energy sector.

While Texas is often closely tied to oil and gas, its strong position in the energy market is not limited just to this industry. Texas is now the largest producer of wind energy and the seventh largest producer of solar energy in …

Oil & Gas Survey: West Virginia, Josh Fershee

Texas A&M Journal of Property Law

This Article summarizes and discusses important recent developments in West Virginia’s oil and gas law as determined by recent West Virginia Supreme Court of Appeals cases. There were no substantial legislative changes in the current period.

Experience Is A Dear Teacher--The Texas Wind Decommissioning Statute, Rod Wetsel

Texas A&M Journal of Property Law

As is well known among both my students and colleagues, my professional life as a lawyer (and later as a law professor) took a monumental turn in 1999 when I reviewed and drafted my first wind lease in Nolan County, Texas. That lease, as well as all of the other wind leases at the time, contained contractional “clean up and restoration” clauses similar to many oil and gas leases then in use. Simply put, the leases provided that upon expiration or termination of the lease (which for a wind lease, unlike an oil and gas lease, might be fifty or …

The Footprint Of The Chinese Petro-Dragon: The Future Of Investment Law In Transboundary Resources, Guillermo J. Garcia Sanchez

Faculty Scholarship

Chinese offshore investments in the oil and gas sector around the world are on the rise. Like dragons roaming the seas trying to dominate the tides, Chinese state-owned companies are particularly eager to bid for oil fields in maritime borderlines. The article tells the story of how Chinese state-owned companies are over paying for oil on the US-Mexico boundary to gather experience on how China’s global competitors handle resource development conflicts. My argument is that Chinese participation in transboundary field development fits within a long-term strategy to master international legal regimes. The presence of these petro-dragons in borderlines is an …

The Fine Print Of The Mexican Energy Reform, Guillermo J. Garcia Sanchez

Faculty Scholarship

Five years ago, when Mexico transformed its energy sector, most commentators were worried about the government’s capacity to implement the reform. What would the upstream contracts look like? Would the auctions be transparent? How would international companies react? After two successful auction rounds, 107 signed contracts, and the creation of viable regulatory agencies to manage and monitor the reform agenda, the questions have changed. Today, Mexico’s capacity to implement energy reforms and attract foreign investment is no longer in doubt. Today, the most pressing questions about the reform concern its long-term sustainability. Can it survive the Mexican electoral cycles? Will …

Regulatory Fracture Plugging: Managing Risks To Water From Shale Development, Caroline Cecot

Texas A&M Law Review

Debates about the desirability of widespread shale development have highlighted outstanding uncertainty about its health, safety, and environmental impacts—most prominently, its water-contamination risks—and the ability of current institutions to deal with these impacts. States, the primary regulators of oil and gas extraction, face pressure from the energy industry, local communities, and, in some cases, the federal government to strike the right balance between energy production and the health and safety of individuals and the environment—an elusive balance given the ongoing risk uncertainty. This dynamic is not especially unique to fracking, or even oil and gas extraction; instead, this dynamic, characterized …

Regulate Or Be Regulated: Why Professional Landmen Should Be Proactive In Protecting The Integrity Of Their Occupation, Brian J. Steinocher

Texas A&M Journal of Property Law

In most states, the landman profession is unregulated and free to define itself. Work performed by landmen often flirts with the practice of law, but under Texas law much of the work that landmen perform is excepted from the unlicensed practice of law. Historically, the American Association of Professional Landmen (“AAPL”) has been influential in guaranteeing that this exception stays available to landmen all over the United States and that landmen are not subject to licensing requirements in the states they work in. In light of the recent, unsuccessful attempt by the Texas legislature to regulate landmen, this Article will …

Framework Of Surface And Ground Water In Oklahoma And Texas: Perspectives For Oil And Gas Development, Jessica Foster, Gabriel Eckstein

Faculty Scholarship

Chapter Extract:

Advancements in drilling techniques have broadened possibilities for producing hydrocarbons; but the innovations of unconventional drilling have exacerbated existing threats that the oil and gas industry have posed to water resources while creating new challenges. In today's industry, conventional methods of drilling for free-flowing crude oil are playing a secondary role to unconventional oil and gas production capable of bringing hydrocarbons trapped in tight or previously inaccessible geologic formations. Compared to conventional production, unconventional methods use much greater amounts of water in chemical-laden processes that can impact the availability and purity of freshwater resources in concentrated localities where …

The Hydrocarbon Industry’S Challenge To International Investment Law: A Critical Approach, Guillermo J. Garcia Sanchez

Faculty Scholarship

The research presented here challenges the contemporary view that the international investment regime has a “chilling effect” on host government policies. That critique errs in assuming that the effects of the modern bilateral investment treaties on decision-making within host governments have been uniform across states and economic sectors The main argument presented here is that in developing countries that depend on the oil and gas sectors, the international investment regime rarely deters host government rent-seeking behavior that can harm foreign investors.

In petro-dependent developing nations that have weak institutional capacity the survival of the government becomes tied to its ability …

Fixed Vs.Floating Non-Participating Oil & Gas Royalty In Texas: And The Battles Rage On . . ., Christopher S. Kulander

Texas A&M Law Review

The author discusses fixed and floating non-participating oil and gas royalty in Texas and concludes that royalty cases will continue to be heard by the courts.

The 2012 Agreement On The Exploitation Of Transboundary Hydrocarbon Resources In The Gulf Of Mexico Confirmation Of The Rule Or Emergence Of A New Practice?, Guillermo J. Garcia Sanchez, Richard J. Mclaughlin

Faculty Scholarship

This Article explores the international law applicable to the exploitation of hydrocarbon resources that straddle the boundaries between States (transboundary fields) and its applicability to the U.S. and Mexico maritime boundary in the Gulf of Mexico. After a detailed examination of the different sources of international law including treaties, customary norms, judicial decisions, and bilateral practice, the Article concludes that the United States and Mexico have deviated in some regards from the standard international legal practices that other States have adopted to exploit transboundary hydrocarbon resources. The two most notable deviations are in allowing either nation to unilaterally exploit the …

Energy Reform In Mexico: Lessons And Warnings From International Law, Guillermo J. Garcia Sanchez

Faculty Scholarship

The article analyzes some of the contents of the Mexican Energy Reform of 2013 and warns on the international legal implications that the path that Mexico has chosen to follow could bring to its economy and international relations. Concretely, it argues that in order to avoid falling into the same mistakes made by other Latin American countries in the region, Mexico must consider its obligations contained in international treaties signed with the United States on transboundary resources, and its obligations in bilateral investment treaties that protect foreign investors from certain government acts and policies.

Pooling Clauses And Statutes, Gina S. Warren

Faculty Scholarship

Pooling is a tool used to bring together small or irregular tracts of land or mineral interests to form one drilling unit for the purposes of oil or gas production. In general, pooling can be accomplished in a variety of ways, including separate pooling agreements, community leases, voluntary pooling clauses within leases, and compulsory pooling statutes.

This article will focus on voluntary pooling lease clauses and compulsory pooling statutes. This article will discuss the requirements for valid pooling under a voluntary lease provision and look at the remedies available for invalid or improper pooling. It will analyze the effect of …

Endangered Species In The Oil Patch: Challenges And Opportunities For The Oil And Gas Industry, Gabriel Eckstein, Jesse Snyder

Faculty Scholarship

Tension among competing interests is nothing new in environmental law. Even among the most tenacious adversaries, the ability to find common ground can serve as an impetus to further the aims of both industry and environmental proponents. Broadly speaking, advocates of the oil and gas industry prefer few restraints, if any, on exploration, development, and production. Comparatively, champions of biological and ecological preservation favor regulatory protections to conserve these interests. Cutting across these often disparate objectives, the Endangered Species Act (ESA) presents a not-so-obvious opportunity for both sides to receive a share of the pie through cooperation and forward planning. …