» Austin Oil and Gas Attorney Highlights Recent Texas Supreme Court Case

Austin Oil and Gas Attorney Highlights Recent Texas Supreme Court Case

Austin, TX (Law Firm Newswire) January 11, 2012 - Leslie v. Veteran’s Land Board is a very recent Texas Supreme Court case that clarifies some of the confusion about the obligations that executive rights holders owe to mineral rights owners who lack executive rights.

In instances where mineral or royalty interests have been separated from the right to execute a lease, whoever holds the right to execute a lease is called the executive rights holder. Other mineral or royalty owners who do not have the right to execute a lease are called non-executive interest holders.

Austin Business Litigation Lawyer and Employment Attorney, Gregory D. Jordan

Austin Oil and Gas Attorney, Gregory D. Jordan

“The Leslie case fires a warning shot across the bow of executive rights holders,” notes Austin oil and gas attorney Gregory D. Jordan. “As the Texas Supreme Court held, inaction on the part of executive rights holders may not be tolerated, and when the executives refuse to lease, their inactions should be assessed to see if they have breached their duties to the other parties.”

In the Leslie case, a land developer, Bluegreen, developed a large residential subdivision called Mountain Lakes. Bluegreen purchased some of the minerals in the 4,100 acre subdivision and all of the executive rights. But then it created restrictive covenants to control what types of homes could be built and how the property could be used, including restrictions on oil and gas drilling and production.

“This included covenants against commercial oil drilling, operations and refining, and mining and quarries,” said Jordan, commenting on the case. “As the Barnett Shale is an extremely lucrative formation in this area, companies wanted to lease the land. But as the Texas Supreme Court found, the developer breached its duty to the non-executive mineral rights owners via the restrictive covenants that prevented production.”

Mountain Lakes is reported to be located above $610 million worth of minerals that companies cannot access from outside the development. The Texas Supreme Court ruled that the restrictive covenants should be cancelled so that such minerals can be produced. Austin oil and gas lawyer Jordan notes, “The Texas Supreme Court has now made it very clear that executive rights holders will not be able to prevent leases on property they control through exercise of self-interests.”

Owners of non-executive mineral rights or those who have concerns about development of minerals on their property should contact an experienced Texas oil and gas attorney. To learn more about the Austin oil and gas lawyer Gregory D. Jordan visit, please go to www.theaustintriallawyer.com or call (512) 419-0684.

Law Offices of Gregory D. Jordan
5608 Parkcrest Drive, Suite 310
Austin, Texas 78731
Call: 512-419-0684

Other Practice Areas offered by the Law Offices of Gregory D. Jordan

  • Business Litigation
  • Trademark and Copyright Litigation
  • Hospital Retaliation
  • Overtime and Wage Claims
  • Personal Injury
    • Texas appeals court’s decision shows importance of wording in noncompete agreements
      A recent decision by a Texas appeals court demonstrates that the wording of a noncompete agreement must be precise. In the case, East Texas Copy Systems, Inc. v. Player, the Court of Appeals in Texarkana ruled that a noncompete agreement was nonbinding due to the language used in the agreement. As part of the sale [...]
    • Texas property owners file class-action suit against Devon Energy over royalties
      A class-action lawsuit has been filed by Texas property owners alleging that Devon Energy used sham transactions to underpay natural gas royalties. On January 6, class-action status was granted by U.S. District Judge Ed Kinkeade in Dallas, allowing the four individuals who brought the lawsuit to represent the interests of thousands of landowners. The judge [...]
    • Investment firms sue oil company, alleging breach of contract
      An oil company was sued by two investment firms in Harris County District Court in Texas over an alleged breach of contract. SSG Advisors, LLC and Chiron Financial LLC filed the lawsuit against Daybreak Oil and Gas Inc., claiming that Daybreak violated an agreement among the three companies. The investment firms claim they are owed [...]

    See other news sources publishing this article. BETA | Tags: , , , , ,



    Get headlines from Law Firm Newswire sent right to your inbox.

    * indicates required