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The following blog is distilled from Intelligence Research (EIR) publications and EIRs very own Andrew Dittmars media statements on the Diamondback acquisition. Diamondback is one of the largest players in the Permian Basin, second only to Exxon Mobil, based on gross operated oil volumes. [1] million per location. [2]
In Litel Explorations, LLC v. million dollars in emergency costs from prior operators of an orphaned well. The Court held that, when the LDNR spends monies from the Oilfield Site Restoration Fund on emergencies, it can only recoup those costs from the well’s operator of record and its working interest owners. LLC , 21-0741 (La.
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]
The rising demand for lithium, combined with Federal tax credits for lithium production, has intensified lithium exploration efforts. Formed during the Jurassic period, this geological formation has been tapped for oil and gas, as well as brine for production of bromine, since the 1950s.
We gained these benefits from a recent project to apply artificial intelligence (AI) to early exploration research. This helps them to make better and faster decisions in the intense competition for gas and oil exploration contracts. From acquiring licenses to starting production can take over a decade.
Like traditional exploration and development, CCUS projects require the operator to secure both the necessary private property rights from landowners as well as regulatory approval from the appropriate administrative agency in order to proceed. In addition to the unit order, the operator must receive approval for its injection wells.
AI-powered technologies are enabling companies to optimize operations, enhance oil and gas exploration, and prevent costly disruptions. From predictive maintenance to real-time data analytics, AI solutions are revolutionizing how oil and gas companies operate, analyze vast amounts of data, and reduce risk across the board.
By Dana Douglas The Louisiana First Circuit Court of Appeal recently held that an operator is not responsible for payment of a non-operator’s royalties and overriding royalties before payout. In Gulf Explorer, LLC v. 6/8/07), the operator completed a well that was plugged and abandoned without reaching payout.
RUE grants are authorizations from BOEM to use a portion of the seabed not encompassed by the holder’s lease to construct, modify, or maintain platforms, artificial islands, facilities, installations, and other devices that support exploration, development, or production of oil and gas or other energy resources from another lease.
The Order, however, does not limit oil and gas operations under valid leases, so previously approved activities and operations can continue. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter. The Order can be found at [link].
The sharp decline in oil prices over the past year and a half has had a significant impact on operators and mineral lessees in Louisiana and in other oil-producing states. Mineral lessees may be particularly concerned with whether recent production levels have maintained their leases beyond their primary terms.
Louisiana Land and Exploration Co., Iowa Production , landowners sued oil and gas companies for breach of a mineral lease. Louisiana Land and Exploration Co., The Energy Law Blog will explore the import of the prescription ruling in a separate post. State of Louisiana v. 2020-00685 (La. 6/30/2021); — So.
However, HB 537 provides an exception for those “adversary” entities who have already been conducting oil and gas operations in the state. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter. Valerie Hodges, Louisiana House Bill No.
Since this blog’s post on production in paying quantities on January 26, 2016 , the Louisiana Second Circuit Court of Appeal rendered its latest decision on the subject in Middleton v. Specifically, courts must consider all relevant factors, not just profit, when determining whether production is in paying quantities.
For investors, this sector offers diverse opportunities, ranging from upstream exploration to downstream refining and distribution. Upstream Investments; Exploration and Production (E&P): The upstream sector involves the search for oil and gas reservoirs and the extraction of these resources.
As an operator decides between 440, 660, or 880 foot spacing, what are the production impacts in each scenario? Operators have limited tools to forecast these scenarios because of limitations in physical and statistical modeling unique to shale wells. Figure 3: Spacing and production in the Delaware Basin.
natural disasters, Act of God); and (5) determining compliance with new certification standards for low methane gas, and improving production to satisfy these standards. natural disasters, Act of God); and (5) determining compliance with new certification standards for low methane gas, and improving production to satisfy these standards.
On June 2, 2017 the Louisiana Second Circuit Court of Appeal affirmed a trial court’s judgment cancelling a mineral lease under Mineral Code article 140 and provided further clarity on a production in paying quantities analysis under Louisiana Mineral Code article 124. [1] Tauren Exploration, Inc. 4] In 2007, Fossil Operating, Inc.
Years earlier, Sweet Lake sued multiple oil and gas operators, including four BP entities (collectively, “BP”), alleging environmental damage to property caused by exploration and production activities. Louisiana Land & Exploration Co. , In May 2015, a jury found BP was responsible for the damage. 30:29(F), M.J.
Dedicated Impex FZE is a provider of Drill Pipe Protectors and operates under the brand name DIC Oil Tools. We offer a comprehensive range of thread protectors and other oil-related products, all meeting the industry’s highest quality standards. DIC products have earned ISO and API certifications.
The Eastern District of Louisiana recently held that insurance claims for damage to a Gulf of Mexico production facility will not support federal court jurisdiction under the Outer Continental Shelf Lands Act. Accordingly, the district court remanded the case of LLOG Exploration Co. 1349(B)(1). 1349(B)(1).
3d —, 2021 WL115917, the Second Circuit affirmed summary judgment in favor of Comstock Oil & Gas, LLC, emphasizing not only the importance of the language of Comstock’s Master Service Agreement (“MSA”), but the absence of any contractual or actual operational control over the activities of its independent contractor.
natural disasters, Act of God); and (5) determining compliance with new certification standards for low methane gas, and improving production to satisfy these standards. natural disasters, Act of God); and (5) determining compliance with new certification standards for low methane gas, and improving production to satisfy these standards.
Generally, oil and gas production facilities have accounted for volume losses under the concept of “Fuel, Flare & Losses.” In a recent case, the Louisiana Fourth Circuit Court of Appeal held that processors must also account for gas volume diverted to gas lift operations. In Red Willow Offshore, LLC v.
These costs are directly related to the actual drilling operations and typically represent a significant portion of the overall expenses in oil and gas exploration and production. In this blog, you’ll learn about TDCs as well as tangible drilling costs tax treatment.
These costs cover expenses that arent tied to physical equipment but are essential to drilling operations, such as labor, fuel, and site preparation. In this blog, well break down what IDCs are, provide real-world examples, explore their tax treatment, and discuss how excess IDCs could affect your tax strategy.
One important change is how the new definition of “associated equipment” modifies the aggregation rule for Hazardous Air Pollutants (HAP), which in turn modifies the applicability of the “major source” definition for oilfield operations, in particular as it applies to oil and gas wells, tanks and glycol dehydrators. 7412 (n)(4)(A).Section
We observed that the model does identify an increased production trend with wider spacing, but by a magnitude of less than 10% when taking a well from a 440ft spacing to unbounded. Directionally, the model learns the correct relationship between spacing and production, but the magnitude of penalty for tight spacing is insufficient.
As it “is impossible to transfer rights to an assignee under an expired mineral lease,” in a case where oil, gas and mineral leases had expired prior to plaintiff’s acquisition of the property, the Louisiana Third Circuit Court of Appeal in Litel Explorations, L.L.C. Aegis Development Company, L.L.C.,
Port Fourchon handles more than 75% of the oil and gas production from the Gulf of Mexico, while LOOP is the only port in the U.S. The roadway is a critical lifeline that carries nearly 1000 trucks per day transporting goods and workers to Port Fourchon, and from there to exploration and productionoperations in the Gulf.
This is the first time a conference of this nature will be held in the Big Apple, and I am honored to participate as a member of a panel that will explore farmout transactions, joint operating agreements and the use of tax partnerships to optimize the after-tax economics of these transactions.
TMR Exploration, Inc , 2021 WL 267916, the First Circuit affirmed a district court ruling on summary judgment applying the good faith purchaser defense provision set forth in La. The Hills claim that TMR, and its successor operators, produced and sold minerals from underneath their property without their knowledge or consent.
If you worked through the process that we outlined in part one of this blog , you know there are quite a few steps involved in transforming a REST endpoint URL into a Power BI data table. So, this second part of the blog provides a nice shortcut for you: a pre-configured Power BI report. Download the zipped Power BI report (.pbix)
Louisiana Land and Exploration Co., Iowa Production , landowners sued oil and gas companies for breach of a mineral lease. Louisiana Land and Exploration Co., The Energy Law Blog will explore the import of the prescription ruling in a separate post. State of Louisiana v. 2020-00685 (La. 6/30/2021); — So.
BlueStone primes the Court to resolve a Texas appellate court split regarding whether a lease provision requiring royalties to be paid based on “gross” profits or value received from the sale of oil and gas production nullifies an “at the well” valuation point elsewhere in a lease. Heritage Resources , 939 S.W.2d 2d at 120-21. II, LLC v.
Share on Explore strategies: Discover how integrating DERs, advanced demand response, and AI-driven solutions can transform grid management. Enhanced cost-efficiency: Uncover how real-time data analytics and demand response technologies are streamlining grid operations, significantly reducing response times and operational costs.
territorial waters and CBP’s 2020 Notice concerning vessel equipment and crane operations, the result was as expected. The Jones Act applies to activities and operations, such as the installation of a wind farm, in U.S. Insofar as the July 15 Ruling was in line with previous rulings addressing wind farm installations in U.S.
As it “is impossible to transfer rights to an assignee under an expired mineral lease,” in a case where oil, gas and mineral leases had expired prior to plaintiff’s acquisition of the property, the Louisiana Third Circuit Court of Appeal in Litel Explorations, L.L.C. Aegis Development Company, L.L.C.,
Also included is a joint operating agreement (“JOA”) to govern the drilling and operation of additional development wells in a formation once a working interest in that formation has been earned in accordance with the provisions of the EJDA. Protect “Operatorship” of the formations underlying the Leases.
The plaintiff, Martha Ellison d/b/a Ellison Lease Operating, alleged that the defendant lessees, Samson Resources Company (“Samson”), COG Operating LLC (“Concho”), drilled and operated a well on her leasehold. See 2021 WL 1432222 (Tex. Communications include firm news, insights, and events.
Environmental Protection Agency (EPA) announced it had finalized a voluntary disclosure program for new owners of upstream oil and natural gas exploration and production facilities. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.
Iowa Production, et al. Legacy litigation claims generally concern alleged contamination arising from historic oil and gas operations under theories of both breach of contract and tort. 3) If the alleged violator is operating under a variance and is in compliance with the terms of such variance. (4)
The audits streamline operations and enhance productivity through better equipment and energy plans. This guide explores how these audits work, their benefits, and why they are vital for cost savings and sustainability. Improve energy efficiency through energy-efficient operational upgrades and energy-saving practices.
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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