Everything's Bigger (and More Arduous) in Texas: An Analysis of Texas's Unpredictable Precedent Involving Overhead Costs and Their Relation to a Mineral Well's Overall Upstream Expense Calculation

Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
Texas Tech Law Review
Abstract

Examines how for over a century, the oil and gas industry has encompassed such a predominant part of Texas's identity that "oil production" and "Texas" have become nearly synonymous and as a result, Texas currently has one of the strongest economies in the United States. Because of the industry's prevalence, a substantial amount of legislation, administrative statutes, and litigation address virtually every facet of oil and gas production in Texas. Reviews how the state delegated authority to regulate the industry to the Texas Railroad Commission. Highlights the fact that oil and gas production is one of the largest subjects of scrutiny in Texas, substantial ambiguities still exist regarding the laws that govern the industry.

Description
Keywords
Surveying the well site, Calculating a well's overhead expenses, Checking title, History of the oil and gas production process, Energy production in Texas, Drafting the lease, Railroad Commission, Oil and gas lease, Accounting, Operating agreement, COPAS accounting procedure, The Habendum Clause, Adjudicating overhead disputes, Texas Judicial System, Skelly Oil Co. v. Archer, Prize Energy Resources, L.P. v. Cliff Hoskins, Inc., Deference to trial court, Standard of Review, Allocation method, Fixed rate basis, Percentage basis, Lease provisions, Prize Energy Resources, L.P. v. Cliff Hoskins, Inc., Archer and Ladd, Pre-operating negotiations, Adequate lease provisions, Plugging the well
Citation
Matthew M. McKee, Everything's Bigger (and More Arduous) in Texas: An Analysis of Texas's Unpredictable Precedent Involving Overhead Costs and Their Relation to a Mineral Well's Overall Upstream Expense Calculation, 47 Tex. Tech L. Rev. 315 (2014-2015)