Oil and gas litigation takes on a variety of forms. Common among these are disputes between the owner(s) of a royalty interest in minerals and the party responsible for exploring and producing minerals and paying out royalties to their owners. These disputes often implicate duties owed by producers to royalty owners, or the proper accounting (including allowable deductions) for royalties to be paid. Disputes also arise between and among joint interest owners in an oil and gas prospect or between joint interest owners and the operator of the prospect over the latter’s performance or the allocations of costs. Such disputes turn upon provisions in joint operating agreements, such as Area of Mutual Interest or Right of First Refusal provisions, how they are interpreted, and how they are applied to various factual settings.
Another recurring claim in the oil and gas context involves assertions by a disgruntled potential participant in a venture who contends he was assured the right to participate in a prospect but was wrongly prevented from doing so. Other oil and gas litigation with which our attorneys are familiar include claims that a lease has been terminated due to a failure to develop or to cessation of production; claims of fraud and misrepresentation associated with an investment in oil and gas projects; and contract disputes between a purchaser and seller of oil and gas prospects. Carrington Coleman litigators have had substantial experience prosecuting and defending each of these types of claims, along with many others in the oil and gas arena.