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Courts Address Exculpatory Clause in Joint Operating Agreement

The Energy Law

1992), which held JOA exculpatory language limiting operator liability to situations of gross negligence of willful misconduct applicable to all good faith actions undertaken by the operator under the JOA, including performance of its contractual duties. 2006 WL 905345 (D. Marathon Oil Co., 2d 254 (5th Cir. Union Oil Co.,

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OCS Lease Expiration: MMS Denial of Suspension of Operations Upheld

The Energy Law

173 IBLA 250 (2008), affirms an MMS denial of a Suspension of Operations (“SOO”) where the lessee submitted an revised exploration plan (“EP”) and permit to drill (“APD”) just days before the lease’s 10-year primary term expired, but was unable to conduct lease activities before the expiration date.

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Louisiana Second Circuit Provides Guidance as to Good Faith Required When Conducting Operations Necessary to Interrupt Prescription of Mineral Servitude

The Energy Law

In Cannisnia Plantation , the Louisiana Second Circuit faced the issue of whether a mineral servitude owner conducted good faith operations sufficient to interrupt the prescription of non-use of a mineral servitude. A well was spud on March 28, 2006. The mineral servitude owner disagreed with the notice and refused to comply.

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You Cannot Just Read the Regulations to Understand Stormwater Permitting for Oil and Gas Activities!

The Energy Law

The 1987 amendments to the Clean Water Act (“CWA”) added language creating a permitting exemption for uncontaminated runoff from Oil and Gas operations. The regulations clarified that the permitting exemption only applied to oil and gas operational activities; thus, construction activities were not included in CWA §402(l). c)(1)(iii).

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Third Circuit Affirms Trial Court’s Refusal to Adopt DNR’s Most Feasible Plan in Sweet Lake Land & Oil Co. v. Oleum Operating Company

The Energy Law

30:29, in 2006 to provide a procedure for ensuring that amounts awarded to remediate environmental damage are actually spent on remediation. The Louisiana Legislature passed “Act 312,” La. In May 2015, a jury found BP was responsible for the damage.

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Texas Supreme Court Agrees to Review Three Oil and Gas Cases in 2016

The Energy Law

In Laddex , the lessee of the top lease, Laddex, sued the lessee of the base lease, BP, contending that the prior lease terminated during a period of slow production between August 2005 and November 2006. Both parties filed petitions for review before the Texas Supreme Court. Briefing can be found here. ExxonMobil Corporation v.

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Pipeline Canal Class Action Dismissed

The Energy Law

The opinion is available at 2006 WL 3333797 (E.D. 28, 2006).