On Friday, June 30, 2023, the Third Court of Appeals in Austin issued its opinion in Railroad Commission of Texas, et al. v. Opiela. The appeal was lodged by the Railroad Commission of Texas (“RRC”) and Magnolia Oil & Gas Operating, LLC (“Magnolia”) after the 53rd District Court in Travis County (“Trial Court”) determined the RRC inappropriately granted a drilling permit for a production sharing agreement (“PSA”) well.
A cotenant, also known as a tenant in common, is defined as someone having co-ownership of separate, undivided interests in land. This is often seen when members of a family each own a fraction of an interest in a tract of land.
Under Texas law, a Deed which conveys a tract or strip of land conveys the title to the land in fee. “Fee” is the short form of a fancy legal term “fee simple” which Black’s Law Dictionary defines as an interest in land […] being the broadest property interest allowed by law. In other words, by taking title to land in “fee” you own the surface the minerals and all rights associated therewith.
Texas is the second largest state in the United States of America, covering roughly 268,596 square miles with numerous roadways, easements, and highways. Texas is also a leading oil and gas producer and within such a large state, chances are that oil and gas activity will be in the vicinity of one of these roadways.
A Power Purchase Agreement, or “PPA,” is a financial agreement between two parties. There is a developer or power company looking to build or finance work on a power plant (the “Seller”), and an end-user or entity that purchases that electricity for distribution or consumption (the “Buyer”).
Under the common law, the principle of “first in time, first in right” controls who owns a piece of property. However, over time the common law has been supplemented by statutory enactments and equitable doctrines, the two often overlapping. Recording statutes limited the common law rule and were enacted to provide notice regarding the state of title and protect subsequent bona fide purchasers by providing an equitable remedy. A bona fide purchaser is someone who purchases land for value, and without notice of any prior conveyance. There are three basic types of recording statutes: race, race-notice, and notice.
This post will discuss how using land for solar projects may interact with severed mineral estates in Texas. When it comes to mineral rights and use of the surface estate, Texas follows the Dominant Estate Doctrine, in which the mineral estate is deemed dominate over the surface estate. This means the mineral estate owner has the implied right to use as much of the surface as “reasonably necessary” to enable mineral production. However, in certain instances, the mineral estate must accommodate an existing surface use under the Accommodation Doctrine.
Under current Texas law, if a person (a “Testator”) leaves a part of their estate by Will to a “lineal descendent” (a child or grandchild); or to a “descendant of a Testator’s parent” (a brother or sister), and that descendent predeceases the Testator, the gift will pass to the children of the predeceasing descendent.
What is the difference between a lengthy metes and bounds property description, and a simple reference to a prior deed filed of record? Why does one property description take two pages, describing the length of each boundary, while other property descriptions are only one sentence long?
Making the decision to get married is momentous and life changing. Not only are you choosing a partner to share life’s many adventures with, you and your significant other become one under the law. This means that some, if not all, of the assets you acquire also belong to your spouse, making it marital property.
The COVID-19 pandemic has proven to be an unprecedented time for all of us: high unemployment, mandatory quarantines, and a severe economic downturn. As a result of the turmoil, many in the oil and gas industry have been searching for ways to toll contractual obligations regarding drilling and production operations under oil and gas leases.
A Will, by itself, is not effective to convey title, possession, or interest in property. A Will must first be admitted to probate. Generally, under Texas law, a Will must be admitted to probate within 4 years of a person’s death. This process is known as “probating a Will.” Failure to probate the decedent’s Will within this 4-year time period typically means that the Estate will pass under intestacy laws, as if the deceased had no will at the time of their death.
Texas has been a leader in the energy industry for many years, and that now includes wind energy. Wind energy is becoming a more prominent source of energy and as wind turbines become a common sight across the Texas countryside, it is important for landowners and developers to stay abreast new regulations regarding wind energy. On June 14, 2019, Gov. Abbot signed House Bill 2845, which modifies Section 301 of Title 6 of the Texas Utilities Code; this law took effect September 1, 2019.
Some more good news going into 2021 is that U.S. Congress on December 22, 2020 passed a spending bill that will help to continue growing renewable energy in our country. This bill includes $35 billion for energy research and development programs.