The Oil And Gas Operator's Texas Advantage

Law360, New York (May 17, 2013, 11:57 AM EDT) -- A recent Supreme Court of Texas decision, Reeder v. Wood County Energy LLC, et al., has clarified the extent to which oil and gas operators can be held liable by nonoperators under the 1989 model form operating agreement of the American Association of Petroleum Landmen. Joint operating agreements usually include an exculpatory provision eliminating an operator’s liability, absent the operator’s gross negligence or willful misconduct. Because an operator takes on the risk of conducting drilling operations on behalf of its other co-tenants and is not doing...
To view the full article, register now.