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Selected Works of Laura Burney
Article
The Texas Supreme Court and Oil and Gas Jurisprudence: What Hath Wagner & Brown v. Sheppard Wrought
Texas Journal of Oil, Gas, and Energy Law (2010)
  • Laura Burney, Saint Mary's University of San Antonio
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Abstract
The Texas Supreme Court and Oil and Gas Jurisprudence: What Hath Wagner & Brown v. Sheppard Wrought?
 
Laura H. Burney
 
5 Tex. J. Oil Gas & Energy L. 219 (2009).
 
 
          According to the Texas Supreme Court, a lessor’s interest remains pooled even after her lease terminates.  The Court’s November 2008 opinion in Wagner & Brown, Ltd. v. Sheppard provoked strong reactions among oil and gas law practitioners, academics, and others involved in the industry.  In fact, the court received nearly a dozen amicus curiae briefs signed by more than 20 attorneys—many of whom typically represent producers—urging it to reconsider.  Not persuaded by these concerns, the court finalized its opinion on June 5, 2009.  So now the question for players in the oil patch is: What hath Wagner & Brown, Ltd. v. Sheppard wrought?  This question is further discussed and suggestions for addressing the aftermath are discussed.
 
            Although Sheppard joins a long line of cases in which the Texas Supreme Court adopted producers’ legal arguments in oil and gas lease disputes, it injects unprecedented uncertainty into Texas oil and gas jurisprudence.  Rather than discourage litigation, the opinion encourages parties to pursue disputes in court since it called into question principles and practices previously considered settled.  Therefore, for years to come attorneys, producers, title examiners, financial institutions, mineral owners, and other stakeholders in the oil and gas industry will grapple with the unfortunate legacy of Wagner & Brown, Ltd. v. Sheppard.
Keywords
  • Pooling,
  • royalty calculation,
  • covenant,
  • Wagner & Brown,
  • Ltd. v. Sheppard,
  • Ladd Petroleum Corp. v. Eagle Oil and Gas Co.,
  • cross conveyance,
  • fee simple determinable,
  • possibility of reverter,
  • Hitzelberger v. Samedan Oil Corp.,
  • HECI Exploration Co. v. Neel,
  • oil and gas lease,
  • Texas Supreme Court,
  • Mineral Interest Pooling Act (MIPA).
Disciplines
Publication Date
2010
Citation Information
Laura Burney. "The Texas Supreme Court and Oil and Gas Jurisprudence: What Hath Wagner & Brown v. Sheppard Wrought" Texas Journal of Oil, Gas, and Energy Law (2010)
Available at: http://works.bepress.com/laura-burney/30/