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Unpacking Proximate Cause in SWD Failure

Producer's Edge

A recent SWD failure case dives into critical questions of proximate cause and explores whether the reasonable prudent operator defense may shield against surface damage claims. In this case, Lee v. Investigation revealed that there was severe degradation of the well’s tubing and casing. Memorial Prod. Operating LLC , No.

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Texas Supreme Court Holds that Add-Back Provision in Oil and Gas Lease Required Royalties to be Paid on Prices in Excess of the Producers’ Gross Proceeds

The Energy Law

The lessees owned working interests in certain oil and gas leases that were executed in 2007. Sheppard , — S.W.3d 20-0904, 2023 WL 2438927 (Tex. The leases contained the following royalty provisions: 3. NationsBank”, 939 S.W.2d 2d 118 (Tex. 1996) and “Judice v. Mewbourne Oil Co.”, 2d [133,] 135-36 (Tex.

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