Remove 2014 Remove Casing Remove Operator
article thumbnail

Offshore Companies Face Surge in BSEE Enforcement Actions and Penalties

The Energy Law

1] Operators face more BSEE inspections, Incidents of Non-Compliance (INCs), and civil penalties than ever before. For example, in 2014 the agency imposed a civil penalty of $1,230,000—an unprecedented figure in the history of the BSEE civil penalty program. See Island Operating Co., 186 IBLA 199 (2015). 1 RMMLF-INST PAPER NO.

article thumbnail

Western District of Louisiana Holds that Unit Operators May Not Recover Post-Production Costs from an Unleased Mineral Owner’s Share of Production Proceeds

The Energy Law

District Court for the Western District of Louisiana held that a unit operator may not recover post-production costs from an unleased mineral owner’s share of production proceeds in Allen Johnson, et al. 30:10 governed whether a unit operator may deduct post-production costs against UMO’s share of production proceeds. [3]

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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

The Energy Law

2023), the Texas Supreme Court held that the lessee could not invoke a force majeure clause to save its oil and gas leases when it inadvertently scheduled its operations to begin after the requisite deadline. The lessee, MRC Permian Company, received four identical oil and gas leases from certain lessors in 2014.

Spud-in 98
article thumbnail

Unpacking Proximate Cause in SWD Failure

Producer's Edge

Saltwater disposal wells rarely fail, but when they do, a complex web of legal issues can arise, such as potential regulatory matters, and potential claims for surface or subsurface damages, among other related operational concerns. In this case, Lee v. Operating LLC , No. Operating LLC , No. Memorial Prod.

article thumbnail

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 dispute arose out of the drilling and operation of two wells drilled in 1999. Kerr-McGee Rocky Mt., LEXIS 2530 (La.

Casing 40
article thumbnail

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

The Energy Law

Produced water—a substance traditionally considered to be a useless byproduct of fracing—has recently become a valuable product that can be treated and sold to operators for drilling. This substance can be dangerous to the environment, so operators are required to carefully dispose of it—a costly endeavor. COG Operating, LLC , No.

Oil 98
article thumbnail

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 well was a dry hole, however, and was therefore plugged and abandoned on April 21, 2006.