Royalty Litigation

← All Financial, Royalty & Mineral Claims

Tarrant Regional Water District v. Bedrock Production, LLC et al., in the 141st Judicial District Court, Tarrant County, Texas

Represented Bedrock Production in a royalty lawsuit brought by lessor in the Barnett Shale. Lessor alleged underpayment of royalties following an audit and sought over $33 million in damages. Lessor’s claims hinged on an aggressive interpretation of a royalty provision dictating that the lessee had to calculate royalties based on the average of the three highest prices paid for production in an entire Texas Railroad Commission District. Our team exposed issues with Plaintiff’s damages model during expert depositions. Following these depositions, the parties reached a confidential settlement, and Plaintiff dismissed all claims with prejudice.

Type of Case: Accounting & Audit Disputes, Postproduction Cost Disputes, Royalty Litigation

Ovintiv USA, Western District of Texas Federal Court and Fifth Circuit Court of Appeals

Represented Ovintiv in a lawsuit brought by a plaintiff claiming that Ovintiv had underpaid their royalties based on Ovintiv’s recoupment of overpaid royalties. Filed a motion for summary judgment, which the district court granted in its entirety, dismissing all of plaintiff’s claims. Plaintiff appealed the decision to the Fifth Circuit Court of Appeals. Following oral argument, the Fifth Circuit affirmed the district court’s opinion.

Type of Case: Royalty Litigation, Royalty Recoupment Disputes, Appellate Litigation

IKAV Energy and SIMCOE, District of Colorado Federal Court

Represented IKAV Energy and SIMCOE in a putative class action filed in La Plata County, Colorado. Removed dispute to federal court under the Class Action Fairness Act. Once in federal court, successfully bifurcated dispute to limit discovery. Following extensive briefing, secured dismissal of all claims brought by putative class action against IKAV Energy and SIMCOE.

Type of Case: Royalty Litigation, Postproduction Cost Disputes, Class Action Defense

Legacy Reserves, LP & Marathon Oil Company, in the Justice Court, Precinct 1, Limestone County, Texas

Represented Legacy Reserves and Marathon Oil in a royalty lawsuit brought by heirs to a lessor in the Haynesville Shale. Plaintiffs’ claims sought thousands of dollars that had been escheated to the Texas Comptroller of Public Accounts as unclaimed funds. Defendants filed a motion for summary disposition to dispose of Plaintiffs’ claims due to limitations and lack of damages. Following these filings, the parties reached a confidential settlement, ending the dispute.

Type of Case: Accounting & Audit Disputes, Royalty Litigation

Texas Oil & Gas Association (TXOGA), Supreme Court of Texas

Prepared amicus brief for TXOGA in support of respondent COG Operating in the high-profile Cactus Water Services v. COG Operating matter. TXOGA argued the Appellant’s position that surface owners, rather than operators, own produced water from oil and gas operations would upend the State of Texas’s regulatory regime and threaten the continued operations of nearly every oil and gas producer in the State. The Supreme Court affirmed the Court of Appeals’ judgement that oil and gas operators, not surface owners (or their assigns) have the right to possession, custody, control, and disposition of water in the liquid waste from oil and gas production.

Type of Case: Amicus Curiae Briefs, Appellate Litigation, Produced Water Disputes in Texas, Lease Ownership Disputes, Royalty Litigation

H.L. Hawkins, Jr., Inc. v EOG Resources, Inc., in the 143rd Judicial District of Reeves County, Texas

Represented EOG Resources, Inc. in a Delaware Basin royalty dispute in Reeves County, Texas involving approximately $500,000 in alleged unpaid royalties. Plaintiff claimed EOG assumed royalty liabilities through a bankruptcy asset acquisition. EOG moved for summary judgment based on the bankruptcy court’s sale order and lack of successor liability. The case ultimately resolved by settlement.

Type of Case: Royality Litigation, Lease Ownership Disputes

Confidential Litigation in the 112th Judicial District Court, Upton County, Texas

Representing a confidential Defendant in an ongoing Permian Basin lease termination and royalty dispute in Upton County, Texas. Plaintiffs allege cessation of production, lack of production in paying quantities, and underpayment of royalties, and seek to quiet title to mineral interests. Defending claims for trespass to try title and breach of contract involving legacy lease provisions and royalty obligations. Case is ongoing.

Type of Case: PPQ & Cessation, Royalty Litigation

Alicia Anne Pope & Danielle Marie Hawkins v ConocoPhillips Company in the 143rd Judicial Court, Loving County, Texas

Represented ConocoPhillips (COG Operating LLC) in a Loving County royalty dispute alleging breach of lease and statutory nonpayment of oil and gas proceeds tied to Permian Basin wells. Plaintiffs sought royalties, interest, and penalties under the Texas Natural Resources Code. The case was dismissed within four months of filing.

Type of Case: Royalty Litigation, Lease Ownership Disputes

Burlington Resources, District Court, Howard County, Texas

Representing Burlington Resources and ConocoPhillips in a lawsuit pending related to payment of royalties on a deed. Plaintiff claims that defendants have underpaid plaintiff based on language in the deed at issue. Case is ongoing.

Type of Case: Fixed vs. Floating Royalty Disputes in Texas, Royalty Litigation

Chevron USA, District Court, Howard County, Texas

Representing Chevron USA in a lawsuit pending against it and several other defendants related to claims about deed interpretation. Plaintiffs claim that they are entitled to a larger amount of royalties based on their reading of the deed at issue. Case is ongoing.

Type of Case: Fixed vs. Floating Royalty Disputes in Texas, Royalty Litigation

TLLM Family Limited Partnership v. Ovintiv USA, Inc., United States District Court for the Northern District of Texas

Represented Ovintiv against landowners in royalty dispute. The landowners alleged that their respective leases did not permit Ovintiv to deduct postproduction costs from landowners’ royalties. Landowners also alleged that Ovintiv had underpaid royalties due to an incorrect ownership interest calculation. Ovintiv moved to dismiss the landowners’ claims because their leases did, in fact, allow for deduction of postproduction costs under well-established Texas law. Ovintiv also moved to dismiss Plaintiffs’ claims because their complaint failed to plead sufficient facts to allege Ovintiv miscalculated their ownership interests. The United States District Court for the Northern District of Texas granted Ovintiv’s motion to dismiss but allowed the landowners to replead their ownership interest calculation claim. Plaintiffs did replead, but ultimately voluntarily dismissed their claims.

Type of Case: Accounting & Audit Disputes, Add-Back Disputes, Royalty Litigation, Lease Ownership Disputes

Marathon Oil EF, in the 218th Judicial District Court, Karnes County, Texas

Represented Marathon Oil in a royalty lawsuit brought by lessor in the Eagle Ford Shale. Plaintiff claimed that Marathon improperly took deductions for post-production costs. After plaintiff filed motion for summary judgment, drafted and filed cross-motion for summary judgment and response to plaintiff’s motion. Following these filings, plaintiff non-suited all claims in the case with prejudice, ending the dispute.