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Texas Supreme Court to Review $500 Million Verdict in Case Involving Formation of Partnership to Construct Crude Oil Pipeline

The Energy Law

a case concerning Texas partnership law. At the end of a four-week trial held in 2014, the jury found that ETP and Enterprise created a partnership to market and pursue a pipeline project and that Enterprise had failed to prove that it complied with its duty of loyalty. Enterprise Products Partners, L.P. ,

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Appellate Review of Downhole Cases: The Supreme Court Repairs the Third Circuit’s Broken Manifest Error Standard in Hayes Fund for the First United Methodist Church of Welsh, LLC v. Kerr-McGee Rocky Mt., LLC, 149 So. 3d 280 (La. App. 3 Cir. 10/01/14)

The Energy Law

The Louisiana Supreme Court recently issued a decision in a downhole damages case, reversing the Third Circuit’s misguided application of the manifest error standard of review. 2014-C-2592, 2015 La. The case itself necessitated extremely nuanced and technical testimony regarding the geology and geophysics of the formations.

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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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Supreme Court Punts on Important Arbitrability Question

The Energy Law

This is now the second time this case has been before the Supreme Court on issues of arbitrability. It remanded the case for the Fifth Circuit to determine whether the parties agreed to delegate the arbitrability of the claim at issue to an arbitrator. It also rejected the “wholly groundless” exception altogether. 3d 1010 (2d Cir.

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Force Majeure Clause Fails to Protect Oil and Gas Lessee From Mistakenly-Scheduled Deadline

The Energy Law

The lessee, MRC Permian Company, received four identical oil and gas leases from certain lessors in 2014. That drilling rig was also scheduled to drill two other wells before drilling the well at issue, but MRC could have forgone drilling the two other wells to drill the new well, in which case it would have met the May 21, 2017 deadline.

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One Man’s Waste is Another Man’s Treasure: Texas Appellate Court Holds that Produced Water Belongs to Mineral Owners

The Energy Law

COG owned the minerals under four leases in Reeves County, Texas executed between 2005 and 2014. This substance can be dangerous to the environment, so operators are required to carefully dispose of it—a costly endeavor. That is, until the last few years. This statute, however, only applies to instruments executed after September 1, 2019.

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Fifth Circuit Identifies Potential Conflict with Supreme Court on Jones Act Seaman Test

The Energy Law

Maintaining that the plaintiff qualified as a seaman under controlling Fifth Circuit precedent but questioning that precedent in light of Supreme Court case law, the panel urged the Fifth Circuit to review the case en banc. Smart Fabricators of Texas (“SmartFab”) fabricates steel and repairs oil and gas drilling equipment. 1349(b)(1).

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