Rick Smead is a veteran in the natural gas industry. If you have read anything on shale gas reserves, you have have probably read something that he had a hand in creating. This come-lately niche has led to 100 speeches on the topic over the last 3 years. Rick was holed up in a Washington D.C. law firm for a few days serving as an expert witness. I went in and met with him to discuss his…

Disclosures During Oil and Gas Lease Negotiations - Texas and Louisiana



The oil and gas industry has always been subject to booms and busts. Barnett Shale and Haynesville Shale lessors are recovering from their first “bust.” Their roller coaster ride started with oil and gas lease terms of $200/acre and a 1/8th royalty, up to $27,200/acre and a 1/4th royalty, and then back down to $500-$5,000/acre and a 1/5th royalty. In some cases, it seemed like the “going rates” changed…

Mineral Estate Surface Use Limitations



Any surface damages discussion must begin with the caveat that the mineral estate is dominant to the surface estate. This means that the mineral owner has the right to use as much of the surface as is reasonably necessary to develop the minerals but must do so with due regard for the rights of surface owners and without negligence. Texas law defers generally to the lessee’s view of reasonableness. To make matters worse for surface owners, the…

Hiring an Attorney – Some Thoughts



By: Eric C. Camp



Here are some things individuals and companies (collectively called “Clients”) should consider when hiring an attorney.



1) Conflicts of Interest



A preliminary issue is whether the professional responsibility rules regarding conflicts of interest prohibit the attorney from representing the prospective Client. These rules generally prevent attorneys from representing Clients in…

Chesapeake is often criticized for its financial decisions and aggressive techniques to develop natural gas and oil. In plain and direct terms, this article analyzes each decision and the result is surprising. What are your thoughts?

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