MARCH 2020 DAPL NEWSLETTER
2019 – 2020 DAPL BOARD OF DIRECTORS
President Publications Director Alicia Surratt Reid Zambardino, RPL JP Morgan Dorchester Minerals, L.P. [email protected] [email protected] (214) 965-2225 (214) 217-6220
1st VP (Golf Tournament) NGL & Membership Co-Director Mason McCowen Heath Burnett Sponte Resources, LLC Northern Trust [email protected] [email protected] (512) 289-3145 (972) 738-8431
2nd VP (Membership) Education Director Andrew Swann, CPL Bennett Neale, CPL Scout Energy HERV Oil, LLC [email protected] [email protected] (972) 325-1070 (405) 883-7005
Sergeant-At-Arms Advertising Director Jack VanDeventer Michael Anderson Covey Park Energy Bainbridge Uinta, LLC [email protected] [email protected] (903) 521-4828 (972) 954-3427
Treasurer Entertainment Director C. Mason Guinn Joel Robbins, CPL Comstock Resources, Inc. Merit Energy Company [email protected] [email protected] (972) 668-2097 (972) 628-1647
Secretary Immediate Past President Brian Tolson, RPL Matt McCauley, CPL Equitas Energy Partners, LLC Comstock Resources, Inc. [email protected] [email protected] (817) 781-6471 (972) 688-0607
Technology Director AAPL Director Cameron Kroese, CPL Matt McCauley, CPL Peregrine Energy Partners Comstock Resources, Inc. [email protected] [email protected] (214) 206-1800 (972) 688-0607
Mark Your Calendar and DAPL Events
DAPL Educational Luncheon Featuring Texas Railroad Commission Commissioner Christi Craddick at Dallas Petroleum Club Sky Lobby
Tuesday, March 24, 2020 11:30 AM – 1:00 PM
Dallas Petroleum Club Sky Lobby, 2200 Ross Avenue, Dallas, Texas 75201
20th Annual Metroplex Energy Tennis Tournament (METT)
Thursday, March 26, 2020, 6:00 PM (Voluntary check-in, dinner, hit for prizes and tennis scramble)
Friday, March 27, 2020 – Saturday, March 28, 2020 (tennis, meals, beverages, dinner, prizes, live band)
T-BarM Racquet Club, 6060 Dilbeck Lane, Dallas, Texas 75240 Info at: www.mettdfw.org
Benefitting the Texas Scottish Rite Hospital for Children!
DAPL April Happy Hour & Networking Event
Date & Time: TBD
Haywire (Shops @ Legacy West), 5901 Winthrop Street, Suite 110, Plano, Texas 75024
DAPL 1st Annual Skeet Shoot Friday, May 1, 2020 Time: 9:30 AM – 1:00 PM
Elm Fork Shooting Sports, 10751 Luna Road, Dallas, Texas 75220
Benefitting Community Greater Good!
DAPL Beginning of Summer Happy Hour & Networking Event
Date & Time: TBD – Beginning of June
Venue: TBD Christi Craddick is in the forefront of the newest wave of pragmatic conservatives moving into leadership roles across Texas. Raised in a strong conservative household, retained as legal counsel by prominent Texas firms, and shaped by more than a decade as a trusted political adviser, Christi has set a clear standard of integrity, self-reliance and innovation in her role as Chairman at the Railroad Commission of Texas. Since her tenure on the Commission began in November 2012, Craddick has pushed to maximize the effectiveness and efficiency of an energy industry that is driving the state’s unparalleled economic success. In the process, she has repeatedly proven that sensible regulations, careful listening and plain talk can foster innovation that has solidified Texas leadership in the energy sector. Making it a top priority, Christi has worked to educate the public about the oil and gas industry and its impact in Texas. She has fought against Washington’s one-size-fits-all environmental policies that would kill jobs and stifle energy production growth. Christi has advocated for recycling in the oilfields, helping to drive the percentage of reclaimed water upwards, an essential achievement in a state enduring a multi-year drought. As part of her efforts to modernize the agency, Christi has championed an Information Technology (IT) overhaul for the Commission, seeking improvements that would upgrade the Geographic Information System, increase public access to the agency’s data, and speed up inspections and permitting times. A native of Midland, Christi earned both her Bachelor’s Degree as a Plan II graduate and her Doctorate of Jurisprudence from The University of Texas at Austin. During her career as an attorney, she specialized in oil and gas, water, tax issues, electric deregulation and environmental policy. Following the example of her father and mother, Craddick has been drawn to public service and politics. As president of a grassroots advocacy firm, she took the lead on work in coalition building in the public policy arena and development and implementation of issue strategies. Christi serves her community as a member of organizations including the State Bar of Texas, University of Texas Liberal Arts Alumni Advisory Council, Southern States Energy Board, The National Petroleum Council and Dell Children’s Medical Center Foundation. Christi resides in Austin with her daughter, Catherine, and is an active member of St. John Neumann Catholic Church.
DAPL WELCOMES NEW MEMBERS
DYLAN ANDERSON NANCY MCCASKELL FREEMAN MILLS PITTS OIL COMPANY, LLC 12222 MERIT DR, STE 1400 4600 GREENVILLE AVENUE, SUITE 300, DALLAS, TX 75251 DALLAS, TX 75201 214-800-5191 214-693-4473 [email protected] [email protected]
ED MELLO REECE CLARK IOG CAPITAL, LP MATADOR RESOURCES 2911 TURTLE CREEK BOULEVARD, 5400 LBJ FREEWAY, STE. 1500 SUITE 900, DALLAS, TX 75240 DALLAS, TX 75219-7110 972-371-5403 214-682-9040 [email protected] [email protected]
TEDDY DANIELS ANTHONY MERKLE HUNT OIL COMPANY AMERKO GROUP, INC. 1900 NORTH AKARD STREET, 5808 SANDSHELL CIR E, APT 13302, DALLAS, TX 75201 FORT WORTH, TX 76137 214-978-8432 9407811601 [email protected] [email protected]
ERIC HANNAMAN MATTHEW BARRETT MORRIS CONCENTRIC MINERAL PARTNERS, LP COMPASS ROYALTY MANAGEMENT P.O. BOX 3294, 15303 N. DALLAS PKWY, MIDLAND, TX 79702 DALLAS, TX 75214 9032628054 972-788-5828 [email protected] [email protected]
LAUREN KRAMER PETER NYGAARD FREEMAN MILLS INDEPENDENT 12222 MERIT DR, STE 1400 PO BOX 8276, DALLAS, TX 75251 EDMOND, OK 73034 2148005191 4066900918 [email protected] [email protected]
DREW LANGFORD PETER NYGAARD PERMIAN BASIN ABSTRACT / TITLEMADE MEADOWS OIL & GAS CORP 10503 BERRY KNOLL DRIVE, 609 S KELLY AVE STE G-3, DALLAS, TX 75230 EDMOND, OK 73003 903-293-9266 4066900918 [email protected] [email protected] CASEY LARSON JOSHUA RALEY SWALLOWTAIL ROYALTIES EXCO RESOURCES, INC. 7750 N. MACARTHUR BLVD, STE. 120-370, 5219 MERCEDES AVE, IRVING, TX 75063 DALLAS, TX 75206 8173015771 2149128440 [email protected] [email protected]
MARISA RIOJAS JAMES LESYNA, JR. CGI, INC 12222 MERIT DR, STE 1400 14800 LANDMARK BLVD SUITE 300, DALLAS, TX 75251 DALLAS, TX 75254 2148005191 2147843855 [email protected] [email protected]
RYAN LONG RYAN TAYLOR INDEPENDENT FREEMAN MILLS 7207 BRENNANS DRIVE, 12222 MERIT DR, STE 1400 DALLAS, TX 75214 DALLAS, TX 75251 4699647192 2148005191 [email protected] [email protected]
STEVE MARTIN, RPL MATTHEW TYNSKI TIE LAND, LLC PONY OIL 17521 US 69 SOUTH, SUITE 200, 4245 NORTH CENTRAL EXPRESSWAY, TYLER, TX 75703 DALLAS, TX 75205 2142155193 4696878221 [email protected] [email protected]
WILLIAM MAYS MARK WALSTON STEVENS LAND FREEMAN MILLS 6415 CHESLEY LN, 12222 MERIT DR, STE 1400 DALLAS, TX 75214 DALLAS, TX 75251 9728418885 2148005191 [email protected] [email protected]
JOHN DAVID WELLS COLTON MCCABE SAN SABA ROYALTY CO 713 VALLEY CREEK DRIVE, 4925 GREENVILLE AVE, STE 500, PLANO, TX 75075 DALLAS, TX 75206 3073999339 214-384-5160 [email protected] [email protected]
Dallas Association of Petroleum Landman 1st Annual Clay Shoot Benefitting Community Greater Good* Friday, May 1, 2020 9:30AM – 1:00PM Elm Fork Shooting Sports 10751 Luna Rd., Dallas, TX 75220 www.elmfork.com
The 1st annual clay shoot will be 100 shots across 15 stations, taking place at Elm Fork Shooting Sports in Dallas. Registration Fee includes breakfast, lunch, refreshments & numerous raffle prizes! Please note that registration does NOT include shells. You may bring your own shells, or they can be purchased at Elm Fork. Please bring your own eye and ear protection.
Shooters will compete in 4-man teams. Sign up as an entire team or as an individual and we will place you with others to assemble a 4-man team. Priority will be given to sponsors then individuals, should any remaining slots remain. This event is only possible through your sponsorship. Please consider being a sponsor.
Breakfast begins at 8:30AM, and shooters will hit the course at 9:30. Mulligans will be sold at check in.
Entry fee is $175 for DAPL members, and $200 for non-members. Sponsorships also available.
Shooter Name Fee Sponsorship Level (if individual, leave blank) 1
2
3
4
TOTAL
Not a shooter, but still want to attend? We need volunteers! Please call or email Hagen Vasek at (972) 212- 8011 or [email protected] for more details.
Make checks payable to DAPL and mail this completed form, along with payment, to: Texakoma Attn: Hagen Vasek 5601 Granite Parkway, Suite 800 Plano, TX 75024
*Community Greater Good is a 501(c)3 and funds are designated for their annual BikeMS benefitting the National MS Society. www.facebook.com/CommunityGreaterGood/ SPONSORSHIP FORM
DAPL ANNUAL CLAY SHOOT 2020
LUNCH Sponsor $2,750 Includes four (4) players (breakfast, lunch & shoot) Premier Sponsorship with signage throughout the courses. Company logo on all banners DAPL NewsletterSOLD & DAPL OUT Website recognition Company logo on DAPL website with link to Company website
BREAKFAST Sponsor $2,750 Includes four (4) players (breakfast, lunch & shoot) Premier Sponsorship with signage throughout the courses. Company logo on all banners DAPL Newsletter & DAPL Website recognition Company logo on DAPL website with link to Company website
STATION Sponsor $2,000 (30 available) Includes four (4) players (breakfast, lunch & shoot) Company logo on sign at an individual station DAPL Newsletter & DAPL Website recognition
CART Sponsor $2,000 (2 available) Includes four (4) players (breakfast, lunch & shoot) Company logo on carts (1 course for each sponsor) DAPL Newsletter & DAPL Website recognition SOLD OUT
CIGAR Sponsor $2,000 Includes four (4) players (breakfast, lunch & shoot) Company logo at cigar table by check-in DAPL Newsletter & DAPL Website recognition SOLD OUT
INDIVIDUAL SIGN UP $175 for Members $200 for Non-Members Includes breakfast, lunch and shoot SAVE THE DATE!
Texas Energy Council 32nd Annual Symposium
Thursday, April 30, 2020
Dallas Petroleum Club 8:30 a.m. – 4:30 p.m.
Reception (open bar) Dallas Petroleum Club 4:30 p.m. – 7:00 p.m.
FULL DAY OF INDUSTRY KNOWLEDGE (usually approved for some CE, CEU, CLE, CPE, etc. credits) AND NETWORK WITH ASSOCIATES
Please consider becoming a Sponsor - all of the net proceeds benefit energy industry student scholarships and educational initiatives. Contact Bob Unger, Sponsorship Chairman, at [email protected] or check out our website (www.texasenergycouncil.org) for more information and the sponsorship form.
Question about the symposium? Ideas for great speakers/topics? Contact Buffie Campbell, Vice President – Symposium, at [email protected].
The Texas Energy Council (TEC) is a non-partisan, nonprofit 501(c)(3) organization of professional and educational societies dedicated to serving the energy industry in Texas. The TEC was originally founded in 1988 as the Dallas Energy Council, changed to the North Texas Energy Council in 1996, and finally became the Texas Energy Council in 2007. The membership is comprised of over 5,000 members from various organizations. The Council is headquartered in Dallas, Texas. TEC provides a forum for all energy-related professional societies and educational institutions to communicate issues and transfer technology among its members and the general public. Two elected officers from each organization make up the Board of Directors of the TEC.
Our objective is to advance the common interests of the members of professional societies and educational institutions serving the energy industry in Texas to achieve economies, to protect and educate the public, and to promote communication. The Council maintains a central coordinating body to provide a forum for association and communication for representatives of the several Constituent Organizations of those energy related professions.
Texas Energy Council, Inc. P.O. Box 600466 Dallas, Texas 75360 www.TexasEnergyCouncil.org
Texas Energy Council welcomes sponsorships for the 2020 Symposium April 30,2020 -- Dallas Petroleum Club Texas Energy Council - “Professional Societies United to Educate” P. O. Box 600466, Dallas, Texas 75360-0466, www.texasenergycouncil.org
Platinum Sponsor $7,500 TEC Thanks our 2019 Platinum Sponsor: COPAS of Dallas 16 Symposium registrants, special recognition as Sponsor in the program and at Symposium lunch, prominent signage at the event, exhibit location and recognition on the TEC website for one year. Three (3) scholarships credited to the sponsor’s name.
Gold Sponsor $ 5,000 TEC Thanks our 2019 Gold Sponsors: ExxonMobil & Pioneer Natural Resources 12 Symposium registrants, special recognition as Sponsor at Symposium lunch, larger signage at the event, exhibit location and recognition on TEC website for one year. Two (2) scholarships credited to the sponsor’s name.
Silver Sponsor $2,500 TEC Thanks our 2019 Silver Sponsors: Hunt Consolidated & Petro-Hunt 8 Symposium registrants, special recognition as Sponsor at Symposium lunch, increased signage at the event, exhibit location and recognition on TEC website for one year. One (1) scholarship credited to the sponsor’s name.
Bronze Sponsor $1,000 TEC Thanks all our 2019 Bronze Sponsors: 13 4 Symposium registrants, recognition as Sponsor at Symposium lunch, signage at the event, exhibit location and recognition on the TEC website for one year.
Associate Sponsor $500 TEC Thanks all our 2019 Associate Sponsors: 22 2 Symposium registrants, recognition as Sponsor at Symposium lunch, signage at the event, exhibit location and recognition on the TEC website for one year.
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Yes, I agree to be a ______sponsor at the 2020 TEC Symposium at $______. Enclosed is my check #______for $______OR please bill my Credit Card Number: ______, Exp. Date: ______Credit card type (check one): Master Card ______, Visa ______, American Express ______. Name on Credit Card: ______Telephone No.: ______OR please mail invoice to: ______Company/Contact Name/Email: ______Address: ______City: ______State: ______Zip Code: ______. P.S.: THE TEC THANKS YOU!!
The Texas Energy Council (TEC) is a non-profit, non-partisan organization of professional and educational societies dedicated to serving the industry in Texas. The TEC was founded in 1988 as the Dallas Energy Council, changed to the North Texas Energy Council in 1996 and to the Texas Energy Council in 2007. The TEC provides a forum for all energy- related professional societies and educational institutions to communicate issues and transfer technology among its members and the general public and provide scholarships for college students in an energy related major. For more information: www.texasenergycouncil.org
Dallas Geological Society
Calvin Nix President Dallas Geological Society 4925 Greenville Avenue, Suite 200 Dallas, Texas 75206
2/5/2020
RE: DGS Crawfish Boil at Winfrey Point (4/23/2020)
To DGS supporters,
Happy New Year! We want to first take a moment to thank all of you who supported the DGS Holiday Party at Gilley’s. We would not have been able to make it happen without you.
The DGS Crawfish Boil is coming up on Thursday, April 23rd and it is always a hit. This is a family-friendly event with games, a bounce house, a band, food, drinks, great views and plenty of outdoor and patio space to have fun. We expect there to be 150-200 members and family as is typical for this event.
A sincere thank you goes out to those of you who have sponsored in past years, and we hope we can count on your assistance this year as well. This event would not be possible without your continued support. Please see the sponsorship tiers below:
Titanium: $250- admission for 2 Silver: $500- admission for 4 Gold: $1000- admission for 8 Platinum (Bar): $2000- admission for 16
In return for your sponsorship you will receive admission tickets as well as your name or company logo displayed throughout the event and on our website. Platinum sponsors will have their company logo prominently displayed at the event.
To sponsor you can do so online at www.dgs.org/events/127/ or mail a check to:
Dallas Geological Society 4925 Greenville Ave Suite #200 Dallas, Texas 75206
Thanks again for your support!
Calvin Nix Dylan R. Collins President 2nd Vice President
NEXT GENERATION LANDMEN Next Generation Landmen (“NGL”) is a group within the Dallas Association of Petroleum Landmen (“DAPL”) that promotes the development of young professionals in an educational and social setting. NGL is mostly comprised of DAPL members ranging from 0-15 years of experience, but all members of DAPL are encouraged to attend events. Throughout the year NGL hosts educational luncheons, happy hours, seminars, sports events and joint meetings with other local energy associations. Participating in Next Generation Landmen is free and allows DAPL members to get additional value out of their annual dues. NGL Connections is a mentor program that connects interns and NGL’s with Senior Landmen to address the experience gap within our profession. NGL Connections is a great way for experienced Landmen to invest in the future of our business. A mentorship is so valuable to the NGL’s education; it adds a dimension of training not accomplished in the classroom. Participants arrange meetings based on their schedule and discuss important Land fundamentals, challenging work scenarios or current industry news.
Send an email to [email protected] to become more involved in NGL! TOP TEN TEXAS OIL AND GAS CASES OF 2019 – PART 3 OF 3 By Chance Decker and Ryan Sears, Gray Reed
This is the final installment of the three-part series discussing significant oil and gas decisions from state courts in Texas during 2019. It is not intended to be a strict legal analysis, but rather a useful guide for landmen in their daily work. Therefore, a complete discussion of all legal analyses contained in the decisions are not always included.
7. Wagenschein v. Ehlinger, 581 S.W.3d 851 (Tex. App.—Corpus Christi 2019, pet. filed).
In this case, the Corpus Christi Court of Appeals examined the difference between a “tenancy in common” and a “joint tenancy” upon the death of an interest owner. Under a tenancy in common, the deeded interest descends to the heirs and beneficiaries of the deceased cotenant. In a joint tenancy with right of survivorship, on the other hand, upon the death of one joint tenant, that tenant’s share in the property passes to the surviving joint tenants, not the heirs of the deceased joint tenant. Once all of the joint tenants pass away, the joint tenancy is extinguished.
The dispute in Wagenschein v. Ehlinger was over property in Dewitt County. The property was owned by seven individuals (the “Wagenschein Heirs”) in a tenancy in common. In 1989, the Wagenschein Heirs sold the property and executed a deed containing the following royalty reservation:
THERE IS HEREBY RESERVED AND EXCEPTED from this conveyance for Grantors and the survivor of Grantors, a reservation until the survivor’s death, of an undivided one-half (1/2) of the royalty interest in all the oil, gas and other minerals that are in and under the property and that may be produced from it. Grantors and Grantors’ successors will not participate in the making of any oil, gas and mineral lease covering the property, but will be entitled to one-half (1/2) of any bonus paid for any such lease and one-half (1/2) of any royalty, rental or shut-in gas well royalty paid under any such lease. The reservation contained in this paragraph will continue until the death of the last survivor of the seven (7) individuals referred to as Grantors in this deed.
Pioneer Natural Resources Company (“Pioneer”) drilled a producing well on the property in 2010 and began paying the Wagenschein Heirs royalties. As each Wagenschein Heir died, Pioneer credited their royalty interest to the surviving heirs, thus increasing their respective royalty payments.
In 2015, the children of one of the deceased Wagenschein Heirs filed suit against their family members, alleging that because the 1989 deed referenced the royalty reservation being credited to “Grantors and Grantors’ successors” it created a “tenancy in common” and not a “joint tenancy.” If the deed created a tenancy in common, the children of the deceased Wagenschein Heirs would inherit their parents’ royalty interest rather than have it passed to the surviving Wagenschein Heirs.
The trial court and the court of appeals disagreed with the Plaintiffs. Though the deed used the word “successor” one time, it unambiguously reserved the royalty interest to the Wagenschein Heirs and the “survivor[s]” of the Wagenschein Heirs, not their “successors”, “heirs” or “beneficiaries.” Thus, the deed unambiguously created a joint tenancy with right of survivorship, not an inheritable tenancy in common, and as each Wagenschein Heir died, their interest in the property passed to their surviving siblings, not their children.
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8. HJSA No. 3 Limited Partnership v. Sundown Energy, LP, et al., --S.W.3d--, No. 08-18- 00113-CV, 2019 WL 3852677 (Tex. App.—El Paso Aug. 16, 2019, pet. filed).
This case deals with a dispute over the interpretation of a continuous development clause contained in an oil and gas lease. HJSA No. 3 Limited Partnership (“HJSA”) succeeded to the interest of the lessor under an oil and gas lease which became effective on August 4, 2000. The lease had a primary term of six years, and a continuous development clause which afforded Sundown Energy, LP (“Sundown”) and its partners (successors to the lessees) the right to delay termination of the lease by engaging in continuous drilling operations.
The lease contained the following relevant provisions:
[Para. 7(a)] After the sixth anniversary of the Effective Date, and subject to the provisions of Paragraph 7(b), Lessee shall reassign to Lessor or Lessor's designee, all of Lessee's operating rights in all tracts of the
[Para. 7(b)] The obligation in 7(a) above to reassign tracts not held by production shall be delayed for so long as Lessee is engaged in a continuous drilling program on that part of the Leased Premises outside of the Producing Areas. The first such continuous development well shall be spudded-in on or before the sixth anniversary of the Effective Date, with no more than 120 days to elapse between completion or abandonment of operations on one well and commencement of drilling operations on the next ensuing well.
[Para. 18] Whenever used in this lease the term `drilling operations' shall mean: actual operations for drilling, testing, completing and equipping a well (spud in with equipment capable of drilling to Lessee's object depth); reworking operations, including fracturing and acidizing; and reconditioning, deepening, plugging back, cleaning out, repairing or testing of a well.(emphasis added).
HJSA alleged that the lease terminated because, during a period between 2007 and 2013, Sundown did not comply with the continuous development obligation by allowing more than 120 days to elapse between the spudding of subsequent wells. Sundown countered that it has engaged in continuous drilling operations as defined in Paragraph 18. Sundown argued that reworking operations it conducted on existing lease wells satisfied the obligation contained in Paragraph 7.
Both parties moved for summary judgment and the trial court ruled in favor of Sundown, accepting Sundown’s argument that the definition of “drilling operations” set out in Paragraph 18 must be read into Paragraph 7. In reversing the trial court, the court of appeals cited the rule of contract construction that specific provisions control over general provisions in an agreement.
The court reasoned that Paragraph 7(b) created a special limitation, and that in order to avoid the operation of the special limitation, Sundown was obligated to spud a new well in non-producing areas
4823-0279-7744.1 each 120 days. Paragraph 7 described the sort of drilling operation that would satisfy the continuous obligation, and that work was more specific than the general definition contained in Paragraph 18.
Sundown and the dissent argued that the phrase at the beginning of Paragraph 18 (“Whenever used in this lease..”) required that the definition be incorporated into Paragraph 7, to ensure that the provisions of Paragraph 18 were not rendered meaningless. If read together, as suggested by Sundown, its activities on the lease premises satisfied the continuous drilling obligation. The court disagreed. The specific provisions of Paragraph 7 controlled, and since the lease used the term “drilling operations” in other provisions beyond Paragraph 7, the court’s ruling would not render Paragraph 18 meaningless.
9. Kevin Scribner v. Randal Wineinger, Individually and D/B/A Akins Oil Company and Parra Oil and Gas, Inc., -- S.W.3d --, No. 02-19-00208-CV (Tex. App.—Ft. Worth Oct. 17, 2019 no pet.).
In 2002, Kevin Scribner’s father transferred the working interest in an Archer County mineral lease to Scribner via an assignment filed in the public records. In 2010, Louise Daniel, acting under Scribner’s father’s will, assigned that same working interest to Latigo Drilling, LLC (“Latigo”). Latigo began operating the lease. After a series of recorded conveyances, Randal Wineinger and David Park acquired the working interest in June of 2016. On October 1, 2016, Wineinger and Park assigned the interest to Parra Oil & Gas, Incorporated (“Parra”). From 2010 and thereafter, Parra and each of its predecessors in title exclusively operated the lease, received the revenues therefrom (less royalties) and paid all taxes attributable thereto.
In June of 2016, Parra discovered the 2002 assignment to Scribner. Parra’s attorney contacted Scribner via email asking for an assignment of the working interest in light of Daniel’s “mistake” in not finding the 2002 assignment. Parra’s counsel followed up with Scribner two more times requesting an assignment. Scriber refused.
In June of 2018, Scribner sued Wineinger and Parra claiming ownership of the working interest. Wineinger and Parra responded that their predecessors acquired the working interest through adverse possession, citing 16.025 of the Texas Civil Practice and Remedies Code, which provides as follows:
(a) A person must bring suit not later than five years after the day the cause of action accrues to recover real property held in peaceable and adverse possession by another who:
(1) Cultivates, uses, or enjoys the property;
(2) Pays applicable taxes on the property; and
(3) Claims the property under a duly registered deed.
4823-0279-7744.1 If an action for real property is barred by the five-year statute, then “the person who holds the property in peaceable and adverse possession has full title, precluding all claims.” To adversely possess a mineral interest, the adverse possessor must drill and produce oil or gas from the estate.
In response, Scribner claimed that when Parra’s counsel requested an assignment, he acknowledged Scribner’s superior title, thus defeating adverse possession.
By the time Parra’s counsel contacted him in June of 2016, the five-year limitations period had already run. During that five-year period, Scribner’s working interest was not in Wineinger or Parra’s possession, but rather, was in the possession of their predecessors. Thus, Parra’s counsel’s acknowledgement of Scribner’s title in 2016 could not undo the running of the limitations period, which expired in 2015.
Accordingly, the trial court granted summary judgment for Wineinger and Parra and the court of appeals affirmed. Wineinger and Parra had acquired Scribner’s working interest by adverse possession.
10. Mesa S. CWS Acquisition, LP v. Deep Energy Expl. Partners, LLC, 14-18-00708-CV, 2019 WL 6210213 (Tex. App.—Houston [14th Dist.] Nov. 21, 2019, no pet. h.).
This case examined whether or not a pre-work contractual mineral lien waiver is enforceable based upon amendments to Chapter 53 of the Property Code (the Mechanic’s and Materialman’s Lien chapter) enacted in 2011. The operative language was added to section 53.286, which provides “[n]otwithstanding any other law and except as provided by § 53.282 [the statutory lien waiver forms], any contract, agreement, or understanding purporting to waive the right to file or enforce any lien or claim created under this chapter is void as against public policy.”
Southern SWS Acquisition (“Mesa”), under a master services agreement, performed work on three wells for an operator, Deep Operating, LLC (“Deep Operating”). Mesa was not fully paid, so it filed three mineral liens in Milam County encumbering Deep Operating’s property under Chapter 56 (the Mineral Lien chapter). After Deep Operating filed for bankruptcy protection, Mesa filed suit against Deep Operating’s parent company, Deep Energy Exploration Partners, LLC (“Deep Energy”). Deep Energy moved for summary judgment on Mesa’s claims, arguing that Mesa contractually waived its right to assert liens against Deep Operating’s wells and waived its right to seek payment on the contract from any entity other than Deep Operating. The trial court granted Deep Energy’s motion and dismissed Mesa’s claims.
At the court of appeals, Mesa argued mineral lien waivers are void as against public policy because Chapter 56 incorporates Chapter 53’s restriction against no-lien clauses. Mesa contended that such a restriction relates to timing or enforcement of lien rights. Mesa relied on the well settled proposition that Texas lien statutes should be “liberally construed” and cited numerous examples of such liberal constructions and previous incorporations of portions of Chapter 53 into Chapter 56 liens.
4823-0279-7744.1 Deep Energy relied on an oral ruling by the US Bankruptcy Court for the Northern District of Texas which held that such advance lien waivers are valid because (i) the Texas legislature specifically did not include a prohibition against them in Chapter 56 and (ii) Texas courts’ preference that parties are free to contract around statutory or constitutional rights outweighs public policy arguments against mineral lien waivers.
Mesa countered that this oral ruling had no precedential value, relying instead on Property Code § 56.041 and another bankruptcy court’s published opinion which required courts to incorporate the attorneys’ fee provision in Chapter 53 into Chapter 56.
The court of appeals decided to sidestep this fight stating, “[w]e need not decide and express no opinion whether Mesa’s liens are valid because Mesa is not entitled to recover on the liens against Deep Energy.” (emphasis added). The court focused on the Payment of Claims provision in the MSA and agreed with Deep Energy’s contention that the MSA’s Payment of Claims clause required that Mesa “look solely and exclusively to Deep Operating for payment.” Relying on a 2012 case out of the Dallas Court of Appeals and a 2015 decision from the Texas Supreme Court, the Houston Court concluded that when a party to a contract agrees to seek payment or damages only from one source to the exclusion of all others, that party has effectively waived its rights to such payment or damages from other parties. Regardless of the label, the Payment of Claims provision effectively waived Mesa’s liens. Thus, this provision appears to have functioned as a de facto lien waiver.
CONCLUSION …
We hope this series has helped you address the legal issues presented by modern oil and gas activities. As always, if you believe one of these decisions might have a bearing on an action you are about to take or a decision you might make, consult a lawyer.
ABOUT THE AUTHORS
CHANCE DECKER, PARTNER – [email protected]
An aggressive and results-driven litigator, Chance Decker focuses on resolving high-stakes disputes for businesses in the oil and gas industry. His client list includes major players and growing businesses across the energy industry, including E&P companies, interstate pipeline companies, pipe and steel distributors, and oilfield services companies. Chance earned his B.S. from Texas A&M University and his J.D. from University of Houston Law Center.
RYAN SEARS, PARTNER – [email protected]
Leader of Gray Reed’s Energy Transactions Practice Group, Ryan Sears serves as outside general counsel for both domestic and international energy clients, focused primarily on structuring upstream and midstream transactions and advising on the various issues that typically arise during
4823-0279-7744.1 the exploration and production of oil and gas. He earned his undergraduate degree and his law degree from the University of Oklahoma.
4823-0279-7744.1 THANK YOU AGAIN TO ALL THE 2019 DAPL GOLF TOURNAMENT SPONSORS!! WE LOOK FORWARD TO THE 2020 GOLF TOURNAMENT
OPLEX EN SAVE THE DATE TR ER E G M Y The 20th Annual
T E T Metroplex Energy N N N E IS M Tennis Tournament TOUR N A
March 26 - March 28, 2020 T-BarM Racquet Club 6060 Dilbeck Lane, Dallas, Texas 75240
www.mettdfw.org
METT is recognized by the IRS as a non-profit organization 2020 donation to be made to the Texas Scottish Rite Hospital for Children Upcoming AAPL Events
DATE EVENT LOCATION CREDITS 18.00 CEU 3/3/2020 - 3/6/2020 Oil & Gas Land Review, RPL/CPL Exam Oklahoma City, OK 1.00 ETHICS 3/4/2020 Field Land Seminar Evansville, IN 2.00 CEU 3/5/2020 Field Land Seminar Midland, TX 3.00 CEU 3/6/2020 - 3/8/2020 March 2020 Board of Directors Meeting Louisville, KY 11.00 CEU 3/11/2020 - 3/12/2020 Mining & Land Resources Institute Stateline, NV 1.00 ETHICS 3/13/2020 Working Interest & Net Revenue Interest Seminar Corapolis, PA 6.00 CEU 3/18/2020 Ethics Webinar 3/19/2020 AAPL Monthly Streaming Video - Petroleum Geology 1.00 CEU
5.00 CEU 3/24/2020 Surface Use & Access Seminar (webinar available) Traverse City, MI 1.00 ETHICS
18.00 CEU 3/24/2020 - 3/27/2020 Oil & Gas Land Review, RPL/CPL Exam Wichita, KS 1.00 ETHICS 3/27/2020 RPL/CPL Exam Only Fort Worth, TX 4/2/2020 Field Land Seminar Midway, UT 3.00 CEU 18.00 CEU 4/6/2020 - 4/9/2020 Oil & Gas Land Review, RPL/CPL Exam Bakersfield, CA 1.00 ETHICS 4/9/2020 Field Land Seminar Cheyenne, WY 4/9/2020 RPL/CPL Exam Only Bakersfield, CA 4/14/2020 Joint Operating Agreements Seminar Midland, TX 7.00 CEU 18.00 CEU 4/21/2020 - 4/24/2020 Oil & Gas Land Review, RPL/CPL Exam Shreveport, LA 1.00 ETHICS 4/23/2020 Field Land Seminar Oklahoma City, OK 4/24/2020 RPL/CPL Exam Only Fort Worth, TX 18.00 CEU 5/5/2020 - 5/8/2020 Oil & Gas Land Review, RPL/CPL Exam Jackson, MS 1.00 ETHICS
18.00 CEU 5/12/2020 - 5/15/2020 Oil & Gas Land Review, RPL/CPL Exam Corapolis, PA 1.00 ETHICS 5/13/2020 Field Land Seminar East Landsing, MI 5/21/2020 Due Dilligence Seminar Lafayette, LA 5.00 CEU 5/22/2020 RPL/CPL Exam Only Fort Worth, TX 5/29/2020 Held By Production & Royalty Issues (webinar available) Midland, TX 6.00 CEU 6/1/2020 Royalty Deductions Seminar Midland, TX 3.00 CEU 6/9/2020 - 6/10/2020 Joint Operating Agreements Seminar (2 Day) Pittsburgh, PA 14.00 CEU 6/17/2020 RPL/CPL Exam Only Huntington Beach, CA 6/20/2020 Huntington Beach Golf Tournament 2020 Huntington Beach, CA 6/17/2020 -6/20/2020 2020 Annual Meeting Huntington Beach, CA 6/26/2020 RPL/CPL Exam Only Fort Worth, TX 6.00 CEU 6/30/2020 Petroleum Economics Seminar Fort Worth, TX 1.00 ETHICS
Structuring a Deal: Negotiation Strategy & Technique 5.00 CEU 7/9/2020 Pittsburgh, PA Seminar 1.00 ETHICS
18.00 CEU 7/21/2020 - 7/24/2020 Oil & Gas Land Review, RPL/CPL Exam Denver, CO 1.00 ETHICS 7/30/2020 - 7/31/2020 Joint Operating Agreements (2 Days) Tulsa, OK 14.00 CEU 8/18/2020 Royalty Deductions Seminar Denver, CO 6.00 CEU 9/3/2020 Petroleum Economics Seminar Midland, TX 1.00 ETHICS
18.00 CEU 9/15/2020 - 9/18/2020 Oil & Gas Land Review, RPL/CPL Exam Irving, TX 1.00 ETHICS 9/15/2020 Joing Operating Agreements Seminar Denver, CO Structuring a Deal: Negotiation Strategy & Technique 5.00 CEU 10/20/2020 Midland, TX Seminar 1.00 ETHICS 10/27/2020 Surface Use & Access Seminar Denver, CO 10/29/2020 Joint Operating Agreements Seminar Oklahoma City, OK 7.00 CEU 18.00 CEU 11/10/2020 - 11/13/2020 Oil & Gas Land Review, RPL/CPL Exam Tulsa, OK 1.00 ETHICS
18.00 CEU 12/1/2020 - 12/4/2020 Oil & Gas Land Review, RPL/CPL Exam Houston, TX 1.00 ETHICS 12/8/2020 Working Interest & Net Revenue Interest Seminar Dallas, TX 12/10/2020 Royalty Deductions Seminar Corapolis, PA 3.00 CEU www.switchon.org DAPL Advertising ATTENTION MEMBERS Want to reach an audience of roughly 350 (and growing) company and field landmen, attorneys, mineral managers, and analysts actively working in nearly every oil and gas basin in the United States? ...THEN ADVERTISE WITH US The DAPL has revamped its website and newsletter to better serve its membership. This revamp will allow for advertisers and sponsors to be more prominently featured while hopefully attracting an even greater number of members. We have modified our prices and adding additional perks with certain levels, simplified our newsletter advertising prices and will be updating our website advertising prices this summer. Updated newsletter advertising prices are as follows:
DAPL Newsletter Advertisement Prices Effective February 17, 2020 Size/Type Dimensions 10 Issues (Full Year) 5 Issues (Half Year) Full Page 7.5 x 10.5 $3,000* $2,000* inches 1/2 Page 7.5 x 5.25 $1,250 $1000 inches 1/4 Page 3.75 x 5.25 $650 $550 inches 1/8 Page 3.75 x 2.125 $400 $300 inches
*Access to all DAPL Happy Hours from Jan 1 to December 31 at no costs, Reserved spot in Golf Tournament and Clay Shoot (Still must pay to shoot or play), 10% discount on the Golf Tournament and Clay Shoot, and 2 Company/Firm spotlight in our DAPL Newsletter.
Please contact the DAPL Advertising Director, Michael Anderson ([email protected]), for more information or to advertise with us today! DALLAS ASSOCIATION OF PETROLEUM LANDMEN
P. O. Box 600096, 2020 Membership Year Dallas, Texas 75360-0096 January-December
Please accept my application for membership in the Dallas Association of Petroleum Landmen under the classification of membership I have checked below. I agree to be governed by the Constitution and Bylaws of the Association, including the Code of Ethics.
Check one of the following:
_____ ACTIVE Member ($150.00)– Active membership in the association shall be available to professional Landmen whose responsibilities primarily involve the negotiation for the acquisition and/or divestiture of mineral rights, negotiation of business agreements that provide for the exploration , trading and management of oil, gas and all other mineral estates in land in a non-administrative or clerical manner. An applicant for active membership must have the sponsorship of two (2) Active Members of the Association who know the applicant.
_____ ASSOCIATE Member ($150.00) – Associate membership in the Association shall be available to all persons who are directly, primarily and regularly engaged in performing services in the oil, gas and mineral industry. Associate Members shall have all the rights and privileges of Active Members except they may not hold office in the Association, vote in Association affairs or sponsor membership applications. An applicant for associate membership must have the sponsorship of two (2) Active Members of the Association who know the applicant.
NON-RESIDENT Member ($40.00) – Non-Resident membership in the Association shall be available at the discretion of the Board to individuals residing at least seventy-five (75) miles from downtown Dallas. Non-Resident Members will pay reduced annual dues as set by the Board. Non- Resident Members will have all the rights of Active Members except they may not hold office in the Association, vote in Association affairs or sponsor membership applications, and they will pay their share of any and all activities attended. An applicant for Non-Resident membership must be sponsored by two (2) Active Members of the Association or two (2) non-member CPL’s. If the applicant is a CPL no sponsors are required.
_____ SENIOR Member ($40.00) – Senior membership shall be optional to those members who have reached the age of sixty (60) years, and have actively engaged as a Petroleum Landman for at least twenty (20) years, and an Active member of the Association (DAPL) for a period of at least five (5) years. A senior member shall be relieved of his obligation of paying full annual dues, without prejudicing his/her fair rights as an Active member of the organization; provided however, a Senior member shall pay his/her share of ANY and ALL activities attended, plus reduced annual dues which shall be fixed from time to time by the Board of Directors.
PLEASE PRINT C L E A R L Y Full Name (please print) Preferred First Name
Company Name______Nature of Business (i.e., Production, Exploration, Brokerage, etc.) Position Title______Does this position, primarily involve Landman responsibilities (yes or no) Length of Experience as a Landman ______Length of total energy industry experience ______
Office Address / / Street City Zip Office Phone ______Cell Phone (optional)
All DAPL news/information is sent via email. E-mail Address Please print legibly Are you a member of the AAPL?______(yes/no) Birth date ___/___/_____ (for AAPL purposes)
Are you a CPL?___RPL?___ ESA? ______Universities Attended
Other industry associations/societies of which you are a current member
Date______Signature of Applicant
The following two (2) ACTIVE Members in good standing have signed below as sponsors of this applicant. Associate Members may not sponsor.
Sponsor’s Signature Sponsor’s Signature Print Name Legibly: Print Name Legibly: Email Address: Email Address: Phone Phone
MEMBERSHIP APPROVED: THE BOARD OF DIRECTORS
DATE______President______
THIS APPLICATION MUST BE SUBMITTED TO THE ABOVE ADDRESS WITH A CHECK MADE OUT TO DAPL FOR ANNUAL DUES IN THE AMOUNT OF $150.00 IF ACTIVE OR ASSOCIATE, OR $40 IF NON-RESIDENT. 50% AFTER JUNE 1. RETURN TO ABOVE ADDRESS. Your dues cover the costs associated with all DAPL publications, regular meetings and social functions.
AMBASSADORS OF THE OIL INDUSTRY LAND IS THE BASIS OF ALL WEALTH
NTAC:3NS-20