Drill on Through to the Other Side: No Trespass When Drilling Through Mineral Estate with Surface Use Agreement

Elizabeth E. Klingensmith, Jeremy A. Mercer, and Amy L. Barrette

The Texas Supreme Court annunciated two critical points in Lightning Oil Co. v. Anadarko E&P Onshore: (1) unauthorized interference may be a trespass only when it impacts the mineral lessee’s ability to exercise its rights to explore, obtain, produce, and possess the leased minerals; and (2) the trespass injury must outweigh the interests of the industry as a whole and society in maximizing oil and gas. Continue reading “Drill on Through to the Other Side: No Trespass When Drilling Through Mineral Estate with Surface Use Agreement”

Court Rebuffs Dep’s New Chapter 78A Oil and Gas Regulations

Michael L. Krancer and Michael Joseph Montalbano

The Pennsylvania Commonwealth Court stayed, at least for now, implementation of portions of the new Chapter 78a oil and gas regulations that it considered rogue. These new rules are the poster child for “train-wreck” regulation—they come with the trifecta of horribles: (1) a huge price tag; (2) little or no environmental benefit; and (3) at a time when prices for Pennsylvania producers are low.  This is good news for the competitiveness of Pennsylvania as a leader in responsible energy production. Businesses in the oil and gas industry, royalty owners, and companies in the supply chain should keep a close eye out as this case progresses, as they will be significantly impacted depending on future developments in this case. Continue reading “Court Rebuffs Dep’s New Chapter 78A Oil and Gas Regulations”