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Phillips Murrah Directors Discuss Oil and Gas Lease Cancellation Lawsuits at Petroleum Alliance Lunch and Learn

Phillips Murrah presentation to Petroleum Alliance

Directors John M. Bunting and Zac K. Bradt discuss legal actions related to a lease cancellation lawsuit.

Defending Against and Preventing Lease Cancellation Lawsuits

As leasing and drilling activities have increased over the last few years, so have lawsuits by mineral owners seeking to cancel existing oil and gas leases. More often than not, those suits allege that existing wells have ceased producing in paying quantities, and therefore the leases are no longer held by production or “HBP”.

On August 13, Phillips Murrah P.C. hosted a lunch and learn presentation at The Petroleum Alliance of Oklahoma headquarters. Phillips Murrah Directors Zac Bradt and John Bunting discussed the factors courts consider in determining whether a well is producing in quantities sufficient to hold the lease and provided some tips on how to minimize the risk of having the court rule that a lease has terminated for lack of production in paying quantities.

Phillips Murrah presentation to Petroleum Alliance“It is important for oil and gas producers to have an understanding of how courts are interpreting oil and gas lease terms,” said Phillips Murrah Director Liz Brown, who is also a member of the Petroleum Alliance of Oklahoma Board of Directors.

In her introduction statement to the well-attended program, Liz explained that a typical situation ripe for this type of litigation is when a producer has an old lease with a one-eighth royalty and marginal production that is holding acreage in hot areas for oil and gas development such as in the SCOOP or the STACK.

“There have been quite a few recent court decisions exploring what constitutes production in paying quantities,” Liz continued. “I’m glad Zac and John took the time to share their insights with us, so that our members can have a better understanding of what the courts are looking at in making these determinations.”

Some of the other information provided at the recent Lunch and Learn included an explanation of the habendum clause and other lease terms, suggestions as to how a producer can position itself to defend against a lease cancellation lawsuit, and a comparison of how the courts in Texas and Oklahoma interpret production in paying quantities for purposes of determining whether a lease is held by production.

About the presenters:

portrait of Elizabeth K BrownElizabeth K. Brown is a Director whose practice is focused on serving her privately-held business clients at a strategic level as outside general counsel where she assists in managing the many legal issues that arise in running a business, including structuring and negotiating business transactions, managing litigation, settling disputes, assisting with tax planning and designing the estate and succession plan for the family business owners.


Photo of Director Zac K. Bradt

Zac K. Bradt is a Director and an attorney in the Energy & Natural Resources Practice Group. He represents both privately-owned and public companies in a wide variety of oil and gas matters, with a strong emphasis on oil and gas title examination.


Photo of Director John M. Bunting

John M. Bunting is an attorney practicing all facets of commercial litigation and insurance coverage law. His experience includes representing clients in complex commercial disputes; representing energy producers, disposal well operators, and oilfield service companies; representing auto dealers in disputes with manufacturers and competitors; and helping business clients obtain insurance coverage.


Video courtesy of the Petroleum Alliance of Oklahoma

Phillips Murrah Directors to present: Defending (and Preventing) Lease Cancellation Lawsuits

Petroleum Alliance logo

presented by

Phillips Murrah logTuesday, Aug. 13
11:30 a.m. to 1 p.m.
Petroleum Alliance of Oklahoma Headquarters
500 N.E. 4th Street, Oklahoma City

As leasing and drilling increase, so have lawsuits by mineral owners seeking to cancel existing leases. More often than not, those suits allege that existing wells have ceased producing in paying quantities, and therefore the leases are no longer HBP.

Photo of Director Zac K. Bradt

Zac K. Bradt

The presenters of this Lunch & Learn will be Phillips Murrah Directors Zachary K. Bradt and John M. Bunting. They will discuss how operators can defend against lease cancellation lawsuits, including factors that Oklahoma courts consider when determining whether a well is producing in quantities sufficient to hold a lease.

They will also discuss how operators can resolve such disputes outside of court; and how to prevent a lease cancellation suit by determining whether an existing lease is HBP prior to purchasing it.

To register, click HERE.

Presenters:

Photo of Director John M. Bunting

John M. Bunting

Zac K. Bradt is a Director and an attorney in the Energy & Natural Resources Practice Group. He represents both privately-owned and public companies in a wide variety of oil and gas matters, with a strong emphasis on oil and gas title examination.

John M. Bunting is an attorney practicing all facets of commercial litigation and insurance coverage law. His experience includes representing clients in complex commercial disputes; representing energy producers, disposal well operators, and oilfield service companies; representing auto dealers in disputes with manufacturers and competitors; and helping business clients obtain insurance coverage.

Phillips Murrah announces new Director for 2017

jmb-cutout-web-2017

Director John M. Bunting

Phillips Murrah is proud to announce Attorney John M. Bunting has been selected to join the Firm’s group of Directors, bringing the total number to 35.

“I’m proud to be a part of the Phillips Murrah team, and I hope to use this new position to continue helping our clients succeed,” Bunting said.

His practice covers all facets of commercial litigation and insurance coverage law, and his experience includes representing clients in complex commercial disputes involving allegations of breach of contract, negligence, fraud, and breach of fiduciary duty; representing energy producers, disposal well operators, and oilfield service companies; representing owners, general contractors, and subcontractors in construction disputes; and helping business clients obtain insurance coverage.

“John is an incredibly driven and accomplished attorney, and the Firm is pleased to have named him a Director and Shareholder,” said Thomas G. Wolfe, President and Managing Partner. “Given the professionalism and dedication John brings to our clients and the Firm, we know he will have a very bright future.”