The Koopmann decision is significant because the Texas Supreme Court clearly stated its position that RAP should not be applied to invalidate conveyances of oil and gas interests when the holder of the interest can be ascertained and the condition is certain to terminate. Koopmann upholds the long-standing industry practice of inclusion of “as long thereafter as there is production in paying quantities” language in oil and gas conveyances.
the 15-year term. Burlington and Streiber both argued that the payment tendered in December 2011 to the Koopmanns “to extend the primary term of its lease on the tract is ‘similar’ to a shut-in royalty and thus meets the third savings-clause requirement.” Id., Tex. LEXIS 247, at *33. The Texas Supreme Court affirmed the decision of the court of appeals that the interpretation of “other similar payments” in the NPRI reservation constituted a factual issue to be determined by a jury.
Memorandum Opinion
About the Authors:
Eli Kiefaber is a partner with Kiefaber & Oliva LLP. Eli focuses his practice on oil and gas matters, including acquisition and divestiture of oil and gas assets, title opinions, joint operating agreements, federal leases, pooling and unitization issues.
Zachary Oliva is a partner with Kiefaber & Oliva LLP. Zack
focuses his practice on energy and corporate law. He regularly assists clients in the drafting of oil and gas title opinions, purchase and sale agreements and contract interpretation. Additionally, he assists clients with the negotiation, drafting and review of business formations, contracts and service agreements. Zack earned his B.A. from The Ohio State University and his J.D. from Capital University Law School. He is licensed to practice in New Mexico, Ohio and Texas.
Eli is licensed to practice law in Texas, Oklahoma, Colorado and Ohio, is a regular speaker on issues relating to the development of unconventional shale plays and has given a variety of presentations regarding legal issues relating to oil and gas development. Eli earned his B.A from Kenyon College and his J.D., with honors, from Marquette University Law School.
Off-site Drilling: Lightning Oil Company v. Anadarko E&P Onshore, LLC By: Melissa A. Munson, Steptoe & Johnson PLLC Can an oil and gas operator drill
through the mineral estate underlying an adjacent tract of land without the adjacent lessee’s permission? In Lightning Oil Company v. Anadarko E&P Onshore, LLC, the court said yes. Lightning Oil Co. v. Anadarko E&P Onshore, LLC, 520 S.W.3d 39 (Tex. 2017).
Who was involved, and when and where did this take place:
In 2009, Anadarko E&P Onshore, LLC entered into an oil and gas lease with the Texas Parks and Wildlife Department covering the Chaparral
11
G r o w t h T h r o u g h E d u c a t i o n - A p r i l / M a y / J u n e 2 0 1 8
Made with FlippingBook - Online magazine maker