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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. MRC did not notice its error until approximately two weeks after May 21, 2017, at which point it had not yet spudded the new well.

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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. Cannisnia Plantation, LLC v.

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Five Lessons Learned from Executing Shale Drilling Transactions

The Energy Law

In these transactions, the Drilling Party pays for or “carries” all or a substantial portion of the Lease Party’s share of the costs of drilling and completing one or more wells on the leases (“Earning Wells”). The Five Lessons 1. Take advantage of the geology.

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Louisiana Second Circuit Addresses: (1) Creation of Mineral Servitudes Via Notarial Acts of Correction; (2) Obstacles Suspending the Prescription of Nonuse from Running Against Mineral Servitudes; and (3) Payment of Court Costs in Concursus Actions

The Energy Law

In Petro-Chem Operating Co., 1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was operating. Flat River Farms, L.L.C. , Flat River Farms, L.L.C. , 12] In its analysis, the Court first looked to the pertinent language of La.

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FIFTH CIRCUIT BEGINS TO CLEAN UP ITS JURISPRUDENCE ON HOW TO DETERMINE WHETHER A CONTRACT IS (OR IS NOT) MARITIME

The Energy Law

and (2) Does the contract provide or do the parties expect that a vessel will play a substantial role in the completion of the contract? Turning to the second test, the court noted that the specific work order for the P&A job called for the use of three vessels — a supply barge, a tug, and the spud barge OB 808.

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