Allocation Well Disputes in Texas
Texas Oil & Gas Association, Austin Court of Appeals
Submitted amicus curiae brief on behalf of TXOGA in case involving PSA well. Lessor argued that lease language forbidding pooling prohibited the operator from drilling a PSA well across the lease. Amicus curiae brief on behalf of TXOGA explained the nature of PSA and allocation wells and their importance to the industry and argued that PSA wells are not a form of pooling. The Austin Court of Appeals agreed, ruling in favor of the operator.
Type of Case: Amicus Curiae Briefs, Allocation Well Disputes in Texas
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