Hogan Thompson Schuelke Secures Unanimous Arbitration Award for Trinity Royalty Partners in JOA Dispute

Hogan Thompson Schuelke recently secured a multi-million dollar unanimous arbitration award for Trinity Royalty Partners, an independent working interest owner, in a joint operating dispute with Pioneer Natural Resources.

The dispute centered on Pioneer’s conduct as the operator under multiple Joint Operating Agreements (JOAs) in the Midland Basin. Trinity contended that Pioneer drilled wells just above of jointly owned depths for the express purpose of draining Trinity’s minerals without compensation. On behalf of Trinity, Hogan Thompson Schuelke argued that these actions breached multiple provisions of the JOA, including the express duty of good faith, and undermined the fundamental purpose of the JOA: to jointly develop co-owned minerals in a mutually beneficial manner.

The arbitration panel unanimously characterized Pioneer’s conduct as "egregious," finding that the operator purposefully "geo-steered" wells to drill directly above the depth severance where Trinity’s ownership began. As a result, the panel awarded Trinity millions of dollars in damages, interest, and all attorneys’ fees.

The Hogan Thompson Schuelke trial team included Christopher Hogan, James Schuelke, Nicole Hager Fingeroot, and Tanya Sasko.

If you are navigating disputes involving depth severances, geo-steering concerns, or operator breaches of a Joint Operating Agreement, contact us to discuss how our trial team can assist in protecting your interests.