McCully-Chapman Exploration, Inc. v. Ovintiv USA Inc.

Representing Ovintiv USA in a federal bench trial in the Western District of Texas concerning application of a joint operating agreement (JOA). Plaintiff, a working interest owner in dozens of horizontal wells drilled by Ovintiv in Upton County, sued Ovintiv, asserting that a model form JOA executed in the 1980s—before the Shale Revolution—is inapplicable to horizontal wells drilled and completed between 2019 and 2021. Ovintiv maintains that the JOA applies to horizontal allocation wells traversing the contract area of the JOA, subjecting plaintiff to contractual “non-consent penalties.” Plaintiff also asserted title claims, alleging that Ovintiv had under-credited its interest in several wells.

After securing a pre-trial dismissal of plaintiff’s title claims, tried the JOA dispute to the bench in September 2025. Awaiting decision.

Type of Case: JOA Disputes, Allocation Well Disputes in Texas, Adverse Possession

BPX Properties, in the 143rd Judicial District Court, Loving County, Texas 

Represented BPX in dispute related to oil and gas lease in Loving County, Texas. Plaintiffs claimed that lease terminated due to failure of wells on property to produce during secondary term and seek damages for trespass. Defendants (including BPX) sought summary judgment on plaintiffs’ claims based on adverse possession of the lease. Case settled following argument on summary judgment motions.

Type of Case: Lease Ownership Disputes, Adverse Possession

BPX (Eagle Ford) Gathering, in the 24th Judicial District Court, DeWitt County, Texas 

Represented BPX in dispute related to ownership of property in the Eagle Ford Shale. Plaintiff claimed to be owner of the property through adverse possession and that BPX and others had been paying royalties to incorrect parties. Following discovery, filed summary judgment on behalf of BPX. Plaintiff non-suited claims against BPX the day of the summary judgment hearing.

Type of Case: Lease Ownership Disputes, Adverse Possession

BHP Billiton Petroleum Properties, in the 143rd Judicial District Court, Loving County, Texas

Represented BHP Billiton in defending a trespass-to-try-title claim in Loving County, Texas. BHP Billiton took a lease on a valuable tract located in the Permian Basin. Endeavor sued BHP Billiton, claiming that it was the owner of the same mineral interest based on a 1977 lease and through adverse possession. BHP Billiton counterclaimed seeking to quiet title. After depositions of key Endeavor employees and filing of a summary judgment motion on all of Endeavor’s claims, the case settled.

Type of Case: Lease Ownership Disputes, Adverse Possession

Marathon Oil Permian, in the Fifth Judicial District, Lea County, New Mexico 

Representing Marathon Oil Permian in lawsuit related to valuable leasehold rights in Delaware Basin portion of New Mexico. Case relates to the termination of a term assignment and related claim of adverse possession. Case is ongoing.

Type of Case: Lease Ownership Disputes, Adverse Possession