January, 2008

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OCS Lease Expiration: MMS Denial of Suspension of Operations Upheld

The Energy Law Blog

By Jana Grauberger : A recent Interior Board of Land Appeals (“IBLA”) ruling, ATP Oil & Gas Corp. , 173 IBLA 250 (2008), affirms an MMS denial of a Suspension of Operations (“SOO”) where the lessee submitted an revised exploration plan (“EP”) and permit to drill (“APD”) just days before the lease’s 10-year primary term expired, but was unable to conduct lease activities before the expiration date.

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Preferential Rights Decision From Texas Courts

The Energy Law Blog

By Jana Grauberger and Anna Knull In Navasota Resources, L.P. v. First Source Texas, Inc. , No. 10-06-00236-CV, 2008 WL 90444 (Tex. App.-Waco Jan. 9, 2008), the issue presented was whether the preferential right in a Joint Operating Agreement was triggered when working interests subject to the JOA were to be sold along with other interests not subject to the agreement.

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Court Addresses Sufficiency of Demand Letter Under Mineral Code Articles 212.21-23

The Energy Law Blog

In CLK Company, L.L.C. v. CXY Energy, Inc. , No. 07-834, 2007 WL 4409686 (La. App. 3d Cir. 12/19/07), the court addressed the payment of royalties and penalties under Mineral Code article 212.23(c) and concluded that plaintiff’s letters were insufficient to trigger the provisions of that article. In CLK Company , the parties entered into a confidentiality agreement whereby the plaintiff agreed to provide services to the defendant.

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